Rising property values and the high cost of labor and supplies translated to about a $30,000 increase in the county’s insurance rates for the coming year.
Loren Korte with PSI Insurance met with commissioners on Tuesday morning to review changes to the county’s insurance policy. The county contracts with EMC Insurance, with Korte as a representative.
The county’s cost will increase from $219,031 this year to $250,005 next year.
Most of that is attributed to the fact that the county added a couple of buildings and the value of property the county owns has increased from about $14 million to $17 million.
“The cost to replace buildings is more than it has been. That’s where your biggest increase is, as far as the premium. But you did pick up $3 million in coverage.”
Liability costs also increased, Korte noted.
The county needs multiple types of liability insurance, he said.
First, the county needs to protect its officials and employees. Someone may make a decision or take action that results in a lawsuit.
It also covers law enforcement, with costs based on the number of officers. Again, the policy protects the county if someone sues over a law enforcement-related matter.
Other policies protect the county’s equipment, as well as from cyber attacks and embezzlement.
Korte said Allen County is not alone in seeing higher insurance rates. It’s happening across the state, he said.
“Property is the big thing. When material and labor costs go up, rates go up,” he said.
Commissioners approved the policy for the coming year.
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