Hailstorms and last February’s winter storm contributed to a six digit increase in the premium for property and liability insurance coverage for the next school year in College Station ISD (CSISD).
During the CSISD board’s August 17th meeting, approval was given to a contract of $1,674,338 dollars. That’s an increase of $430,885.
Additionally, less expensive deductibles have gone away. Chief financial officer Amy Drozd said instead of a $250,000 dollar deductible per location and $500,000 per storm, CSISD will have to pay up to two percent of a building’s insured value. Drozd told a board member who asked that there is money in CSISD’s general fund budget to cover deductibles.
CSISD has more than $550 million of insured property.
Click below for comments from Amy Drozd during the August 17, 2021 CSISD school board meeting.
Additional information from CSISD:
Contract renewal for property, casualty, general liability and auto insurance: The board approved a contract for its annual property, casualty, general liability and auto insurance.
Each year ANCO Insurance receives bids and solicits proposals on behalf of CSISD and makes a recommendation on the best package available on the open market.
Because CSISD has a high value of insured property, (more than $550 million) the property and casualty insurance is a “layered” program, with multiple companies covering certain amounts of property.
ANCO solicited bids from a total of 59 insurance carriers that bind coverage for large commercial customers, including school districts.
After review of quotes and proposals, ANCO recommended the district renew coverage for the 2021-22 school year with AXIS. Lexington and Berkshire for the layered program, AIG for the school leaders liability coverage, Travelers for the commercial auto and general liability coverage, and Mid-Continent Insurance Company for underground storage tank liability coverage.
The insurance market has seen a dramatic increase in premiums over the past several years, particularly in high-value commercial policies. In total, the district’s insurance premiums total $1,674,338, an increase of $430,885.