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District tables $9,038 deductible buy‑down for property insurance, seeks more details
Summary
Administrators presented an option to lower the wind and hail deductible from $200,000 to $25,000 for $9,038.25 annually; the board requested prior-deductible and coverage details and deferred the decision to a future meeting.
During the July 8 meeting Kimberly Johnson (S4) presented the district's property and liability renewal and an optional deductible buy‑down. Johnson said the district's renewal would increase the property premium from $81,952 to $89,261 (about a 9% increase, roughly $7,300) and described a buy‑down option that would reduce the wind and hail deductible from $200,000 to $25,000 at a cost of $9,038.25 annually.
Johnson explained the trade-off: a lower deductible would reduce the district's out‑of‑pocket exposure on a qualifying wind or hail claim but would add the recurring premium cost. "If we purchase the buy down, our deductible for the qualifying wind or hail claim would decrease from 200,000 to 25,000," Johnson said, noting the buy‑down "comes at a cost of the $9,038." Board members pressed for additional details about the district's prior deductible levels, whether payouts have been limited by insurer age‑based clauses, and whether the district should solicit additional bids or quotes before committing to the buy‑down.
The board did not take immediate action and directed staff to return next month with the previous deductible amount, fuller coverage details and, if appropriate, competitive quotes or alternatives. No vote on the buy‑down option was recorded; the discussion was tabled pending more information.
