School insurance bill spikes - Premium more than doubles to $16.7 million
So you think your property insurance bill is exorbitant? The Palm
Beach County School District is about to take another big hit just
like many homeowners.
The School Board on Wednesday approved spending up to $16.7 million
on the district's 2007 premium, up from $7.8 million this year.
"It's outrageous," said Dianne Howard, director of employee
benefits and risk management.
The increase is due in part to a 61 percent increase in the total
value of the district's properties, estimated at $4.75 billion.
But the new policy would pay out a maximum of only $140 million
for a catastrophe, such as a hurricane.
Administrators would have to seek reimbursement for higher amounts
from the Federal Emergency Management Agency, Howard said.
But on any major claims, the district is responsible for a $10
million deductible.
The higher premium includes a state assessment of $1.06 million
to the Citizens Property Insurance Corp.
District officials say property insurance is harder and more expensive
to come by each year.
In 2005, the district had $200 million in coverage against hurricanes
and other losses. After Hurricane Wilma last year, the coverage
dropped to $140 million for this year.
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