HCCSC hears latest on property, building insurance

Changes and increases in Huntington County Community School Corporation's property insurance policies are on the horizon.

Dave Mettler of Mettler Agency provided an overview of HCCSC insurance, so board members could discuss and question aspects of the district's policy for next year.

Mettler has insured the school corporation since 1972. The company is locally owned and into its third generation of the Mettler family operation. Dave Mettler also brings 32 years of insurance experience to the job.

He explained that the increase in the district's insurance rates is the result of several factors as people themselves are seeing increases in their own personal and property insurance. Factors are inflation and other risks occurring in the market. There are fewer insurance companies backing schools, because they are unable to appropriately write insurance, or can't afford it anymore. The business is cyclable with good and bad years. The good years have about seven companies to choose from to write the policies, while now it's down to three.

The market is currently in what is known as a "hard market" for insurance companies, he told the board. Companies are leaving the state and beyond like Kentucky, even though they have tried to remain in the market covering churches and then schools, he explained. Mettler's current third-party carrier, Liberty Mutual is doing an assessment of HCCSC's buildings now and the cost is included in HCCSC's coverage.

One difference coming up is per incident coverage deductibles versus the per location. Mettler recalled the hailstorm years ago, which resulted in fixing school buildings' roofs for HNHS, Lincoln and Flint Springs, as well as two years of work for other clients. Previous Herald-Press reports show an insurance settlement of $1.4 million to cover the damage to Huntington North's roof.

The discussion didn't bring up common issues with school property insurance, such as if Indiana provides additional funding to school districts with increasing insurance premiums and deductibles.

Future rates, for example, for a storm is expected per occurrence rather than per location for a deductible. He added that the situation is industry and nationwide, and it is driven by the third-party carriers not his office, and HCCSC's carrier has written the book on the policies.

Huntington Schools is between the low to high risk levels for coverage, he added.

The district's annual renewal premium for 12/1/2023 to 12/1/2024 was $1,016,486.50 with the Mettler Agency.

Coverage includes work compensation, commercial auto, general liability, errors and omissions, law enforcement general liability, property, crime and umbrella. The water damage deductible on property, per location, applying to all locations would be $50,000; the wind/hail deductible would be $100,000 per location; and auto physical damage deductibles would be $2,000; and comprehensive $2,000 per collision.

They also discussed coverage of extracurricular activities, such as starting up bass fishing, trap shooting and rodeo clubs. For example, a bass fishing club described during the workshop would require students to wear life preservers. Another eligibility requirement for extracurriculars is if a student participant is not a HNHS student but participates from another school that doesn't offer the activities. The board is expected to consider a policy in the coming months or go out to bid on it.

"This is a major expense for us," said Trout about the HCCSC coverage package.