Chickasha board renews property and liability insurance; keeps $100,000 deductible

The Chickasha Board of Education approved renewal of the district’s property and liability insurance program with a total premium reported at $836,780 and continued liability coverage limits that include a $5 million total occurrence layer. Staff recommended retaining a $100,000 per-claim deductible for property losses after presenting comparisons of $250,000 and $500,000 alternatives and explaining that higher deductibles could convert to per-building or percentage deductibles under private-market quotes.

District staff reviewed recent large hail and wind claims as part of the analysis: examples cited included a $1,953,000 claim from April 2023 and a $5,887,000 claim from 2020 when multiple high-value buildings were affected. Staff said those events illustrate how percentage-based deductibles can create large out-of-pocket exposure on high-valued buildings and that the state pool’s current structure (a $100,000 deductible) can be less costly for the district in those scenarios.

Staff also explained that shifting to a higher deductible produced relatively modest premium savings in the five-year averaged scenarios, and that the district’s roof-maintenance program has reduced claim frequency at participating sites. Board members asked for clarification of deductible mechanics, recent claim amounts and what would change with a private-market carrier. A motion to approve the renewal as presented carried on a roll-call vote.

The board’s action authorizes staff to renew coverage and maintain the current deductible and limits; staff said they will monitor claims experience and market options in future renewals.