City To See 16 Percent Increase In Costs For Casualty And Property Coverage

(Le Mars) — During Tuesday’s city council meeting, council members were given an update on the city’s casualty and property insurance coverage by Rob Bixenman of Perspective Insurance.  Bixenman who was recently elected to become the next mayor of Le Mars indicated this would be his last time appearing before the city council as their re-assurance agent.

Matt Susemihl of Perspective Insurance was introduced to the city council, and will take over the city’s account.

Similar to his comments to the Plymouth County Board of Supervisors a few weeks back, Bixenman reminded the city council the program, Iowa Communities Assurance Pool although often times is referred to as an “insurance program” Bixenman says it is actually a risk management program funded by the those communities and entities that are being protected.

Bixenman informed the city council that there would not be a credit given back to the city this year, and the reason is because of the derecho storm that struck many Iowa communities in August of 2020.

Bixenman says as a result of the damage from the derecho storm,  the program used up all of its reserve funds to help pay for the property damage from the derecho storm, and now must increase the premium rates to build up again the reserves.

Bixenman says across the entire state, premium rates were increased.  Le Mars will see an increase of premium rates amounting to 16 percent, or in the amount of close to a $35 thousand dollar increase.

The total coverage premium for Le Mars for casualty and property coverage will be just under $250 thousand dollars.  The city council did approve the renewal of coverage with the Iowa Community Assurance Pool.