What Is the Answer to Shreveport’s Insurance Mess?
Shreveport is facing a major insurance crisis. Currently the city has only $50 million dollars in property coverage. Last year, we had $800 million dollars in coverage.
Mayor Adrian Perkins decided to change companies shortly after taking office. His goal, as he explained earlier this year was to lower costs and bring in more minority participation. Well we are finding out this new policy with the Frost Company will actually cost substantially more for far less coverage.
Councilman Grayson Boucher says council members are very concerned about this problem.
The council held a special meeting to discuss the insurance issue and they voted to call on the administration to find additional coverage as soon as possible. The group also voted against paying the full commission of $250,000 to the Frost Company and its agent, Roddrelle Sykes.
Chief Administrative Officer Shericka Fields Jones told the council she was advised the coverage would be the same, but recently learned it was not. "I was assured we had full coverage. I asked about $815 million in coverage and was told there was no change."
What are the city properties worth? Auditor Leanis Steward presented a document showing the values of some of the big properties the city owns. Independence Stadium is valued at $91.6 million. The Convention Center has a value of $84.7 million while Regional Airport is valued at $63.6 million.
Councilman John Nickleson says "There must be consequences. We have to rely on professionals. This city could have gone bankrupt. It was a real possibility this past weekend with the storms that developed."