Coverage - Property

Insurance is designed to protect against the financial loss associated with risk, usually in the form of a contract or policy. When something bad happens and there are damages associated with it, insurance may be used to cover those costs. Insurance companies and risk pools like the TASB Risk Management Fund take on the risk of their clients and members. However, insurance companies and risk pools can only assume so much risk. There comes a point that insurance companies and risk pools need to purchase their own insurance—this is called reinsurance.

Members of the Fund and the Texas Municipal League (TML) Intergovernmental Risk Pool joined us for a panel-driven discussion September 12 at Dollars and Sense: A Roof Summit. With severe weather being one of the top global risks in the United States and with Texas being the leading state for hail, it is important to consider roofs an investment in the sustainability of your buildings.

This is the first in a series of articles to bring awareness about the property market conditions that can impact costs associated with your insurance or risk management coverage.On August 11, 2019, the city of Molts, Montana experienced over 70 mph winds with three-inch diameter hail. This caused havoc for homeowners and surrounding populations of migrating birds. So, why does this matter for Texas schools? No matter where they occur, weather events influence the property insurance market, which eventually impacts businesses, homeowners, and local governments, including school districts.

Over the past five years, the TASB Risk Management Fund (Fund) has paid more than $210 million in weather-related property claims, $180 million of which was due to wind and hail damage. The Fund is not alone—weather claims have severely impacted all types of organizations across Texas in recent years. As a result, property coverage deductibles and rates have risen sharply in recent years. In the past, $10,000 wind/hail deductibles were the norm, but today it is common to see six-figure deductibles. Some carriers even require percentage-based deductibles as high as five percent.

Hail has caused extensive property damage in Texas over the past several years, impacting school districts and other educational entities. According to Hail Alert Technologies, more than half of losses from hail damage are undiscovered and unreported. Damage can begin as a small fracture and evolve into interior leaks and further destruction. Hail is one of the most expensive forms of severe weather in claims costs. Learn what you can do to protect your organization’s property and funds.

The spring storm season is quickly approaching, and Mother Nature can be unruly at times. But you don’t have to be caught unprepared. When a storm causes damage to your property, our goal is to help you get your students back in the classroom and your operation back to normal. 

Don't wait until the water is rising to develop a flood preparation plan. Flooding can occur whether your property is in the flood zone or not.

Members who have property coverage through the Fund have Equipment Breakdown coverage at no additional cost. This coverage is provided through our partners at Hartford Steam Boiler.

Hurricane Harvey hit the coast of Texas, caused damaging winds, storm surge, tornadoes, and rain that impacted Fund members and many others.

Spring storms are on the horizon as the season changes from winter to spring. Over the past two years, severe weather has led to historically high property losses, with hail being a top contributor.