(Red Oak) Rick Taylor of Davis-Taylor Insurance, Montgomery County’s representative for the Iowa Community Assurance Pool, which Montgomery County is a part of, delivered not-so-good news to the Montgomery County Board of Supervisors on Tuesday morning.
Taylor says about three weeks ago, he received a call from an ICAP representative stating they were in complex negotiations for reinsurance for the upcoming year. Taylor provided the board with county policy changes that would negatively impact their budget. He says the property portion of the policy is where the county will be affected the most.
Taylor says this is impacting every county. This means that fifteen-year-old roofs and older will be adjusted at a depreciated value, not a replacement. Roofs newer than 15 years will be adjusted at replacement value, less than two percent for wind and hail.
Taylor recently heard from a reinsurance representative who talked about the recent convection storms in Iowa as primarily the driving forces in the reinsurance changes.
Taylor says he blames some of it on the public adjusters who sometimes pushed for roof replacement when they didn’t need it. Taylor says the industry is moving towards actual cash value on all roofs. He says he has some standard insurance companies that have already made that change.
Taylor says the reinsurance issue is not resolved, but they have an agreement. He did not have numbers for the Montgomery County Supervisors at this time. Taylor says we look at adjustments everywhere today, and the insurance industry has been dramatically impacted. He says the convection storms have put some long-standing insurance companies under financial stress, and others are going out of business.
