Friday, May 17, 2024
Rising costs for property and casualty insurance are among the issues the Gatesville Independent School District faces — along with a lack of options among those providing it.
"We rejected the only bid we got because it didn't meet specifications and went with the existing carrier," GISD Chief Financial Officer Darrell Frazier said. That provider, Property Casualty Alliance of Texas (PCAT) increased the amount GISD will pay for the insurance by $85,786 — a 33.2% increase from the previous rate. The total cost for GISD will be $344,155.
The new agreement with PCAT will continue for three years.
"With property values going up, the cost of construction is also going up," Frazier said. "You can bet property insurance costs will go up as well. This three-year renewal is basically capping increases at 10%. If it goes beyond that, we can get out of" (the contract).
Frazier said the district has had its property and casualty insurance with PCAT for several years.
"Why aren't we getting more bids?" board member Jimmie Ferguson asked.
"It's a tough market," Frazier said.
GISD Superintendent Barrett Pollard said natural disasters are among the factors driving the increase in insurance costs.
"A lot of insurance companies took a beating with the winter storm," he said. "It's just not lucrative."
"Options are limited," Frazier said, adding that another option to consider in the future is self-insurance, which presents its own level of risks.
