Kearney board chooses Midwest Public Risk for 2025 amid rising property premiums and wind/hail exposure

City administrator Sheila Ernzen introduced an insurance-market review and invited the city’s broker, Paul from Wallace Arnie and Acres, to summarize renewal options. Paul said the commercial insurance market has hardened nationally with premium increases of "about 30 to 40%" in many places; Travelers proposed a renewal near a 19% increase with a wind-and-hail deductible set at 2% of building value with a $250,000 minimum, while Midwest Public Risk (referred to in the packet as NPR or MPR) offered a higher initial premium but a flat wind/hail deductible (example: $25,000 per occurrence) and an 18-month rate guarantee.

Paul explained the practical difference in a large wind/hail event: under Travelers' proposed terms a $3 million building would have a 2% deductible ($60,000) and a $250,000 occurrence threshold before coverage paid, while Midwest Public Risk's flat deductible could significantly lower out-of-pocket exposure for catastrophic storms. "So whatever building ... it's worth $3,000,000. If you had a wind and hail loss, it would have to be at least 250,000 in loss before the company would be willing to pay," Paul said in an example comparing deductible structures. Following questions about claims experience and loss-control credits, the board indicated consensus toward Midwest Public Risk. The board then moved and unanimously approved a motion to accept Midwest Public Risk’s property/casualty, liability, vehicle and workers’ compensation proposal for calendar year 2025 and directed the city administrator to execute necessary documents.

Why it matters: The decision shifts the city’s risk structure — choosing a carrier with a flatter wind/hail deductible and an 18-month rate guarantee is intended to reduce the city's potential catastrophic out-of-pocket exposure even if the base premium is higher. Board members emphasized the tradeoff between short-term premium savings and longer-term stability and loss-control benefits; staff said specific premium figures and contract documents will be executed by the city administrator.