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Plainview ISD trustees choose lower premium, accept larger deductible on property insurance
Summary
After hearing options from staff and the district’s broker, trustees voted to renew property insurance at a lower premium of $635,218 with a 2% weather deductible and $250,000 minimum per building rather than pay about $253,750 to buy down the deductible.
The Plainview ISD Board of Trustees voted to renew the district’s property and casualty insurance under the lower-premium option after a detailed staff presentation that weighed multi-year premium history, recent weather-related claims, and replacement values for district facilities.
Rebecca Dunlap, introduced in the record as a long-serving purchasing manager, told trustees the district solicited bids through an insurance consultant and received two practical options: a renewal premium of $635,218 with a 2% weather deductible and a $250,000 per-building minimum (no buy-down), or a higher premium of about $888,968 that included a $253,750 buy-down to reduce percentage deductibles. Dunlap described how replacement values vary widely by campus — for example, Plainview High School’s replacement value was presented as roughly $73.4 million — and explained that the buy-down most impacts exposure at the high school.
Board members discussed the trade-offs. Proponents of the lower premium noted the immediate budget savings (the lower premium represented several teaching positions’ worth of funding) and argued the district has not typically experienced catastrophic simultaneous losses across all buildings. Trustees urging a more conservative approach pointed to recent freeze and wind claims — including a costly freeze that damaged gym floors and musical instruments — and emphasized the financial risk to fund balance if the district experienced a large weather event.
After discussion and a formal motion, the board approved the lower-premium option (no buy-down). The motion passed by voice vote as recorded during the meeting. Administration noted the decision is for this policy year and recommended continued annual bidding and close review of renewals.
The board’s choice reduces near-term premium spending but leaves the district more exposed to percentage-based weather deductibles; administrators said that exposure would be covered from fund balance if a qualifying event occurred.
