County hears insurance renewal, weighs replacement-cost coverage for heavy equipment

Tara Holford of Community Insurance told the Winneshiek County Board of Supervisors that the county’s property rate itself was not increasing, but an inflation factor of about 2% would raise replacement values and likely increase the county’s contribution by roughly 5% to 6%.

"The property rate is not increasing," Holford said, adding that the inflation factor causes the county’s insured values to rise and that departments should review schedules and replacement-cost listings. She described options to insure high-dollar items at replacement value or leave them at actual-cash value with the county accepting a higher likelihood of a lower indemnity on older or high-hour equipment.

Supervisors pressed practical examples: several road machines with heavy hours would receive a much higher payout under replacement-cost coverage than under actual-cash-value (ACV), but replacement coverage carries higher premiums and sometimes higher deductibles — Holford noted that large pieces of equipment can carry $10,000 deductibles.

Board members discussed whether to increase deductibles, carry more cash in reserve, or maintain replacement-cost coverage for selected high-value items. One supervisor said the county could raise its carryover balance as an alternative to full replacement-cost insurance for some assets.

The presentation also covered workers’ compensation experience ratings, with Holford reporting an experience-mod of 0.64, down from earlier years — a performance that reduces the county’s workers’-comp premium. Holford said the mod reflects a three-year lookback on losses and payroll and that individual losses can affect the mod for up to five years in practice.

No formal action on the insurance policy was taken that day; supervisors asked staff to circulate renewal supplements and equipment schedules to department heads so the board can make an informed budget decision on coverage levels and deductibles before finalizing the FY27 budget.