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Consultant: property valuation jump prompts recommendation to raise Marion County Schools' loss limit to $50 million
Summary
Risk consultant Ben F told the board the district's recent replacement‑cost appraisal increased total insured value 57% and raised modeled probable maximum loss to roughly $50.2 million; he recommended renewing property coverage at a $50 million loss limit and will update the board packet with lower than previously expected premium figures.
Ben F, an independent risk‑management consultant with Benf & Company, briefed the Marion County School Board on June 18 about the district’s property, casualty and workers‑compensation renewals and proposed changes to the program's structure.
"Your renewal premium for 2627 for property is 2.4 million," Ben F said during the presentation, adding that total property premium runs roughly $2.5 million and represents just under a 9% increase year‑over‑year once late updates are reflected.
He told the board a recent replacement‑cost appraisal — the first since 2013 — increased the district’s total insured value by about 57 percent and pushed modeled probable maximum loss (PML) from $37.1 million to about $50.2 million. Because of that modeled exposure, Ben F recommended increasing the district’s property loss limit from $40 million to $50 million to remain in step with FEMA‑style modeling expectations.
Ben F also explained a self‑insurance loss‑fund replenishment figure of about $2.693 million and said some of the higher replenishment this year reflects closing older claims rather than a spike in claim frequency. He cautioned the board to monitor market changes and to work with actuaries and vendors to refine the district’s statement of values, especially as new facilities come online.
The consultant said the market is softer for property pricing than in recent years, and that updated, lower pricing arrived after the board packet was prepared; staff will post the corrected numbers in the Tuesday board packet prior to the July 1 effective date of the renewal. Ben F also asked the board to watch House Bill 145 (pending at the time), which could change sovereign immunity limits and affect excess‑insurance markets if enacted.
Board members asked clarifying questions about carriers, workers compensation arrangements and the effect of adding new schools to the insured base. No formal vote was taken at the work session; staff will include the updated pricing and the recommended $50 million loss limit in the upcoming board packet for action.
Next steps: staff will update the Tuesday board item with the corrected premium figures and the recommendation to adopt a $50 million loss limit, continue property valuation work and coordinate with actuaries.
