Rates will increase for Picayune school district's casualty and property insurance

Justin Ladner, with BXS Insurance (Bancorpsouth), address the Picayune School Board of Trustees during Tuesday’s meeting on the district’s upcoming premium renewal for casualty and property insurance for July 1, 2019 that is due.

Ladner told the board that he did not come with good news as rates are going up.

Ladner said total insured value of the school’s property is $74,073,222.00. That number, according to Ladner, was after he analyzed items on the list that either did not warrant being insured or possibly were not the responsibility of the district.

Ladner pointed to the storm shelter building on the north end of the PMHS campus that was valued at approximately $3 million. Ladner said to his knowledge, the building is owned by the county, not the school district.

Additionally, he pointed to an old storage building on Airport Road, a chain-linked fence along the old airport on Union School Road, the old bus barn, and a portable classroom at East Side Elementary as items to be omitted in Ladner’s effort to reduce the value from $79 million to the stated value of approximately $74 million.

The new premium will be $261,028.00 which reflects an increase of $31,179.00.

Ladner suggested the board to look at their deductible as another cost savings by raising the districts wind storm deductible from $50K to a higher amount.

“I’m asking the district to put a little more skin in the game in the game until the property rates come down. I don’t think they will come down next year, but I think I can use this as a tool to say ‘hey the district’s willing to put a little more skin in the game Mr. Carrier’. they are going to go up to $200, 000.00, can we give them a better rate, “ Ladner told the board.

Ladner said a $100K deductible would save about $3,000.00 or a $200K deductible would save around $9,000.00.

Board members Jake Smith and Frank Ford discuss insurance renewal

Board President Frank Ford asked if the district had any claims in regards to commercial property, to which Ladner responded “no sir”.

Ford then asked what is the justification for the increase?

Ladner explained, “It’s industry wide. With Hurricane Michael we haven’t any claims. It’s across the board and it’s where they buy re-insurance.”

Ladner (pictured above standing) said that despite the increases, the premiums are much better than years ago.

Ford asked the school administration to verify with the county about the storm shelter building and validate the district did not need to insure the building. Ladner said the district would not eliminate liability on the building since the school uses the facility for activities with students such as archery and other events.

After more discussion, the board approved raising the deductible to $150,000.00 which would result in a savings of $6,016.00. The board then gave the administration the authority to execute the contract on the renewal once they have verified the storm shelter question with the county government.