(Red Oak, Iowa) – Counties in Iowa, including Montgomery County, are being informed they face a massive insurance rate hike for county-owned facilities. Rick Taylor, of Davis-Taylor Insurance, is Montgomery County’s appointed representative to ICAP, the Iowa Communities Assurance Pool. He told the Supervisors during their meeting Tuesday morning, that the County faces an increase of up to 35% in insurance rates in 2024, which could impact the County’s budget by $200-thousand dollars or more.

The rate hike includes a 2% deductible for wind and hail coverage, as opposed to a $5,000 deductible in previous years. Taylor told the Board a series of derechos the State experienced over the past several years is the primary reason for the spike in reinsurance costs.

Rick Taylor said even counties that haven’t seen a high loss ratio, are facing a 30-to 35-percent increase in insurance rates. Montgomery County was hit by storms in 2020 and 2021. The damage included to the courthouse cupola.  He told the Board he hopes to have more specific cost information for their meeting in December.