The Washington County Board of Supervisors voted unanimously to renew the county’s liability insurance with the Leland Home Insurance Agency at its regular Monday meeting.
Nolan Andrews of Home Insurance Agency, which handles property, liability and county bond insurance, presented upcoming insurance renewals to BOS.
He pointed out that the Mississippi Association of Supervisors Insurance Trust (MASIT), which offers the renewals, for the sixth year, is the most competitive insurer in the county because it offers coverage for all real estate, auto, l enforcement, legal and other liabilities. .
“There are no actual changes,” Andrews said in reference to the renewals, “but I have a few proposed changes that you may want to consider that would increase the franchise.”
Andrews said historically deductibles have averaged $25,000 for any type of property loss and MASIT has reduced its property by $5,000.
“If you increase the deductible to $10,000, that would save you about $10,000 on your overall premium,” he explained.
He pointed out that the county has not had to file property claims since the hailstorm years ago and that alone represents an immediate reduction in the cost of premiums.
And, it would take about two claims to recover those funds.
“Another area is also auto and physical damage coverage – you have a deductible of $1,000 and if you increase it to $1,500 it will take about 13 claims to catch up and that will be about $7,000 of savings on premiums,” says Andrews.
District Supervisor Lee Gordon asked what the county premium currently costs.
According to Andrews, the county’s premium will expire at $445,000 and the cost to renew, set for April 1, is $470,000.
“Now throughout the year we’ve traded in 30 vehicles, updated older models with newer models, and property appraisers have come back to increase the amount of coverage for your buildings because we have saw properties increase and we added three graders – about three quarters of $1 million in additional equipment,” he added.
Andrews predicts between $16,000 and $17,000 in savings if the county increases its property insurance deductible from $5,000 to $10,000.
“If you increase the auto up to $1,500, that’s a premium savings of about $7,000 and I wouldn’t go up to a deductible higher than $25,000 for property,” he added. .
District 4 Supervisor Mala Brooks offered to renew the county’s contract with the Home Insurance Agency and follow Andrews’ recommendation to increase deductibles to the proposed amounts.
Gordon seconded the motion and it was unanimously approved by the BOS.