North Scott board accepts 2025–26 insurance rates, discusses 1% property deductible and storm fund option

The North Scott Community School District Board on June 23 accepted proposed liability insurance rates for the 2025–26 year after hearing a presentation on rising property, wind and hail claims and deductible options.

Board members heard that the district’s carrier arrangement has covered most lines with EMC for decades and that recent claim trends—especially wind and hail—have driven property-rate increases and a move to a 1% deductible on structures. A district presenter said annualized premium is projected to rise from about $778,000 to about $850,000 for 2025–26, with roughly 73% of the increase attributed to property-rate changes.

The presentation noted that the district’s insured property value has grown (from roughly $112 million in 2015 to about $210 million more recently) and that inflation and replacement-cost changes also increase premiums. The presenter described claim totals across the school-insurance pool rising substantially in recent periods, and said that wind/hail severity drove structure-rate changes and the 1% deductible.

Board members discussed a vendor-offered storm-protection fund that, at an estimated $80,000 annual cost to join, would reduce the district’s exposure on a catastrophic event from the 1% deductible to a $50,000 per-structure limit for participating districts. The presenter said that for Eldridge-area concentration of buildings the district’s out-of-pocket exposure under the 1% deductible could be substantial in a single large storm, and that joining the storm-protection fund would be an individual district decision based on financial position and geography.

The board did not adopt the storm-protection fund at the meeting; the presenter and board recommended holding off and monitoring pending state-level action on property-tax legislation and the district’s management-fund position before making a multi-year commitment. A motion to accept the proposed liability insurance rates was moved, seconded and approved by voice vote.

Board members also discussed the district’s long-term relationship with carriers and dividend/credit features of its pooled program; staff described the district’s historically good loss experience on several lines (work comp and others) and said staff will continue targeted safety training for kitchen and custodial staff to reduce recurring injuries.

The board’s action accepted the insurer’s recommended rates for 2025–26; no roll-call vote totals were recorded in the public discussion.