Granton Village Board Discusses Insurance
Thursday, September 19th, 2019 -- 10:05 AM
-The Granton Village Board discussed their insurance at their meeting on Tuesday.According to the unofficial minutes from the meeting, the league of municipalities conducted an audit of village property and notified the village that the audit indicated a 44% increase in replacement value. The village spoke to the audit company as there were several concerns regarding how they came up with the numbers. Some examples include the office contents was valued at $28,000 and the replacement costs on the village’s concrete block buildings ranged from $92 per square foot to $1,354 per square foot. When the village questioned these, they were told that the costs include engineering fees. The village asked if they could provide any examples of similar structures that were recently built that would represent these calculations. The audit company sent examples of other buildings they had assessed using the same formulas.
The village tried to explain that they were not questioning whether the audit company was auditing everyone the same but questioning the actual replacement cost. No further explanation was given and the village insurance rep indicated that this audit company was specifically chosen and that the MPIC is determined not to go bankrupt. The village currently pays $18,129 for insurance. The board plans to get some insurance quotes from competing companies so they are prepared when the new rates come out reflecting the 44% value increase.
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