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Union County renews insurance but drops earthquake coverage for courthouse
Summary
Commissioners voted to renew the countyinsurance package under an option that excludes earthquake coverage for the historic courthouse while keeping earthquake protection for other county buildings; the board was told the change saves limited premium dollars but leaves cleanup and reconstruction risk.
Commissioners voted to renew the countyinsurance package under an option that excludes earthquake coverage for the courthouse while keeping coverage on other county buildings. The board adopted "option three" by voice vote after an insurance presenter summarized the cost and exposure trade-offs.
The presenter, identified in the record as Matt, told commissioners the insurer "did not want to write earthquake insurance on the courthouse," and offered several renewal options. He said the countypackage premium this year is in the range cited at about $123,000to$134,000 (compared with roughly $122,000 last year) and that workerscompensation costs had declined from about $85,000 to $36,000, lowering total package-plus-WC from roughly $208,000 to about $170,000.
Board members pressed Matt on what an uncovered courthouse would mean after a catastrophic event. Matt explained actual cash value is computed as replacement cost less depreciation and said older structures can carry heavy depreciation; he also noted the courthouse deductible would be $25,000 while other county buildings carry a $5,000 deductible. "If this courthouse goes down and the rest of it goes down, FEMA will be here," a commissioner said during discussion, reflecting concern about post-disaster cleanup and recovery.
The board was also told the jail remains the countylargest single exposure for earthquake risk if the courthouse is excluded (an actual-cash value figure of about $3.7 million was cited for the jail). Commissioners asked staff to confirm appraisals and to follow up on whether any endorsements (for example, added vehicles) will change the final premium when the carrier issues the new policy, which staff anticipated would bind in early January.
The motion to adopt option three — renewing the existing policy while excluding earthquake coverage for the courthouse only and keeping earthquake coverage on other county facilities — carried on a voice vote. The meeting record included no roll-call tally.
