Jefferson County hears ICAP renewal as property values drive significant premium increase

An ICAP representative presented the county's insurance renewal and warned that HCA property valuations have driven a substantial year‑over‑year property premium increase.

The presenter said the county’s blanket insurance limit rose and the total insured value moved from about $45 million to about $60.8 million, and cited an example in which the courthouse's replacement cost was listed at roughly $18.69 million. He said those higher valuations — not a material rate increase — account for most of the higher premium. ICAP’s renewal is slated to take effect Feb. 1, 2026, and the presenter asked the board to commit to continued membership so invoices and payments can be handled within the typical January window.

Why it matters: the county’s property valuations feed directly into premium calculations. The board must decide whether to accept the valuations and higher premiums, reduce insured values via a stated‑value approach, raise deductibles, self‑insure low‑value assets or buy higher excess limits. Each option changes the county’s exposure in the event of a large claim or total loss.

Details and options discussed: the presenter said ICAP hired HCA to re‑evaluate replacement costs across members, which increased insured values across the state. He offered three practical options: 1) negotiate stated values for specific buildings (which lowers premium but removes blanket limit protection if a claim exceeds the stated value); 2) select higher property deductibles (shifting more near‑term cost to the county); or 3) self‑insure low‑value equipment. He noted the county currently carries a $25,000 deductible for most losses and a wind/hail deductible (percent up to a limit). The presenter estimated adding the ICAP excess limit up to $15 million would cost about $9,000 more annually, and that moving from the county’s historical underlying limit (about $7 million for any one claim) to $15 million is a cost‑effective way to increase protection versus buying monoline excess in the commercial market.

Board questions and follow up: supervisors asked whether terrorism or war exclusions apply; the presenter said he would review policy language because ICAP is a membership pool (not a traditional carrier) and the treatment may differ. Supervisors also asked whether historic‑building replacement requirements could force a higher stated value; the presenter said historic registry status could require replacement to historic standards and counseled caution about stated values for historically significant structures.

Next steps: the presenter asked for a membership commitment to ICAP and said the county could still revise limits during the 30‑day payment window after Jan. 1. Supervisors agreed to review options and to have staff follow up with ICAP to check policy exclusions and to provide a recommended approach before the January deadline.