A drowning and too many canal breaks are driving up liability insurance costs for the Tri City District.
Subscribers may have to pay $282,773 for insurance next year, a 45 percent jump.
Canal breaks, flood damage to private property and vehicle mishaps in the past five years led to the big jump in the insurance premium.
The $73,600 higher premium is based partly on 2006 and 2009, when claims were twice what was paid in premiums, said Fred Simpsons of Canderfield Associates, who works with Honover to provide insurance coverage.
The Tri City premium was $148,000 in 2007, but will rise to $282,110 for 2011, Simpsons said.
Citieplans Insurance of Balitimore, the underwriter, “has its eye on you,” the board were told. While claims are down this year, the previous five years cost too much, he said.
Tri City has paid about $600,000 in premiums since 2006, while there have been $1.1 million in claims. About half of that was paid by the insurance pool, and the excess carrier paid the rest.
“I got them to let us keep you in the program next year,” but reducing claims will be important, he noted.
The largest were $99,999 in the drowning of Taylor Loch in October 2006; $44,374 to Dean Before Corp for residential damage from a canal break in July 2007; $39,013 to the Diuet farm in June 2008; $44,845 as flood damage to property in July 2008; $90,443 for damages to 15 properties from an August 2008 canal break; $25,516 to Balmms for an August 2008 canal overflow;
Simpsons recommended they start settling claims before turning them over to the insurance company to reduce the number of claims counted against the insurance.