Cape Girardeau County commissioners plan reviewing information regarding insurance renewal presented at Monday's meeting and vote on what to renew at the Dec. 28 meeting.
Executive Vice President of W.E. Walker Lakenan Insurance Doug Mueller presented commissioners with insurance renewal options for property, equipment and commercial crime coverage.
Mueller explained there was a significant increase in electronic data processing coverage, from $948,826 in 2019 to $4,833,673 in 2020.
"I kind of applaud everybody's efforts to get us that, because that's some pretty good coverage," Mueller said. "Electronic data processing equipment has some unique coverages that are needed in case there was the loss to occur, including the extra expense coverages that are included with that."
According to Mueller, the county's total insured values have increased to $56,740,841 due to the building of the new courthouse and updated electronic data processing equipment.
Commissioners will have the option to renew earthquake coverage provided by Cincinnati Insurance Companies, which will cover the full $56 million in property values in the event of a devastating earthquake.
"Most insurance companies want to only offer $5 million," Mueller said. "Then we have to go out and get the excess earthquake from other carriers, which we have not had to do for several years since Cincinnati has come up with full earthquake. Their rates did go up, but when I went and requested alternate quotes the insurance companies came back and indicated they weren't even going to try to quote it because they can't compete with Cincinnati's earthquake rate."
Cincinnati also implemented a wind-hail deductible per building in the county's renewal option, which would cover the administrative building, the old courthouse in Jackson, the sheriff's building and the new courthouse. This implementation is because of changes in industry trends in the Midwest, according to Mueller. In his proposal, however, Mueller provided alternate quotes for the county, including a buy down quote for wind and hail damage.
"The bottom line is, for instance, your new courthouse has a $50,000 wind-hail deductible," Mueller said. "That's the only one that has that level. I've got a separate quote from an insurance company that will bring that deductible from 50,000, through Cincinnati if there was that wind and hail claim, to $5,000 through this insurance company, and they are charging a premium for that. I've got the same going on for the other four buildings as well."
Commissioners decided to wait before making a decision on what to renew.
"We'll take this under advisement," Presiding Commissioner Clint Tracy said. "We'll take a look at it and then on the 28th, if we have any other things specifically you need to let us know, we'll look at it."
In other business Monday, commissioners:
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