MAKO rep tells Madison County pool stays stable despite appraisal-driven increases; counties offered stated-value option

A MAKO representative told Madison County commissioners that the county’s insurance pool remains a more stable option than private carriers even as updated appraisals pushed some property values sharply higher.

The presenter said that appraisals accounted for 99% of a 21.53% increase this year and that the county’s building-and-contents values rose by $28,269,250 from the prior year. “If you look at the building and contents that increased by over 28 million,” the presenter said, adding that MAKO’s alternatives in the reinsurance market were as high as about $3 million and would have produced much larger premium jumps.

Why it matters: higher appraisals can sharply raise premiums if the county keeps full appraisal values for every structure. The presenter outlined a commonly used alternative — insuring at a stated value for underused buildings — which reduces current premiums but limits recovery to the stated amount if a total loss occurs.

The presenter used the county’s old school house as an example: it was appraised at more than $1 million but insured at a stated value of $89,000 “so it did go to the ground, we’d have enough money for cleanup,” the presenter said. He cautioned that choosing stated value exposes the county to underinsurance risk on a full loss and recommended staged increases toward appraised value as a mitigation path.

Policy and rates: the presenter said the board previously moved to apply a larger inflation-loading this renewal cycle (10% on the inflation line) to better align contributions with rising values. That change, plus specific property appraisal jumps, produced an overall pool-average increase of about 3.5% this renewal round; vehicles and equipment rates were unchanged. The presenter also noted a 7.5% increase to base liability rates and a three‑year fidelity/crime contract that set per-employee pricing through the contract term.

Coverage and endorsements: MAKO added zoning, ethics and flood‑plain coverage to the standard package at no additional premium, covering defense costs when those matters trigger suits, the presenter said. The group also retains access to builder’s‑risk coverage; the presenter said MAKO provides $5 million in builder’s risk and Madison County currently shows $4.5 million scheduled for construction exposures.

Claims and capital: MAKO reviewed recent loss ratios and open claims. The presenter said liability loss ratios averaged about 73% over recent policy years and pointed to two open matters he described: a wrongful‑termination claim with expenses at $69,762 and a general‑liability matter at about $4,993. He said MAKO is working toward a stronger capital adequacy position to expand reinsurance options and reduce future rate pressure.

What’s next: the presenter invited county staff to contact MAKO’s claims team for detailed or sensitive claim updates and recommended evaluating stated‑value choices and project phasing on upcoming fairgrounds and bus‑barn projects to manage near‑term premium impact.

Ending note: no formal county action on coverage changes was recorded in the provided transcript; the meeting proceeded to other agenda items and later a motion to adjourn.