The overview
The district’s property insurance will cover damage from windstorms and all other peril along with equipment breakdown, Superintendent Carol Nelson said at the district’s June 13 meeting.
In total, the increase is about 72% higher than the previous year and comes as school districts across the state and nation are seeing similar increases to their property coverage, Nelson said.
“Until the state does something about our Texas windstorm state insurance, school districts and businesses are in a bind,” Nelson said at the meeting. “This is challenging.”
The new rate was passed in a 6-1 vote at the June 13 meeting. Board Member Albert Johnson, who was the lone vote against the item, declined to comment June 15.
How we got here
Being a fast-growth district, AISD officials expect to see higher premiums in the future due to new buildings being added, according to a memo from Donnie Marek, the district’s executive director of risk management.
However, the primary driver for increased premiums for several governing bodies and companies is high-cost disasters that cause losses in the insurance industry, Marek stated in the memo.
“Our neighboring districts are seeing the same increases and are also being forced to accept lower [policy] limits with higher deductibles,” Marek stated in the memo.
