“Premium” insurance

Once in a while something happens that is so illogical that it boggles our mind. For the second year in a row, the city of New Albany’s handling of its property insurance coverage falls in that category.

The Board of Aldermen, on a 3-2 vote, last week decided to keep its insurance business with Dickson Simmons of the Twitty Agency, even though his proposal was more expensive than one submitted by Ray Collins of Collins Insurance.
The Twitty Agency offered two proposals, one with a $17,938 annual premium with a $2,500 deductible and the other with a premium of $15,568 with a $5,000 deductible. The Collins Insurance proposal had a premium of $13,796 with a $1,000 deductible.
Last year the board voted to transfer its business to Collins, who offered a lower premium, but rescinded the vote after allowing the Twitty Agency to rework its bid to reduce the cost.
This year Alderman Scott Dunnam made the motion to accept the Collins bid. It was seconded by Jeff Olson. The motion failed on a 2-3 vote.
Then Alderman Johnny Anderson moved to accept the Twitty proposal. He was supported by Aldermen Will Tucker and Tommie Beasley.
Both insurance proposals were made by respected local citizens from reputable local businesses.
The board’s decision means taxpayers will pay 30 percent more for city property insurance than necessary.
This is not logical.
In our opinion, the board majority failed to exercise its financial responsibility to taxpayers.