School insurance rates to rise 34 percent in St. John

Published 12:00 am Friday, February 29, 2008


Staff Reporter

RESERVE –St. John the Baptist Parish school system has once again felt the after effects of Hurricane Katrina after the school board accepted a costly new property insurance contract last week.

Business Manager Felix Boughton recommended the board to accept the plan by RSUI Indemnity, the only bid the school system received.

The insurance package cost $904,677, 34% more than the previous plan of $679,282 that is set to expire March 8, 2008.

Boughton said the increased cost is due to the replacement value of the school buildings appreciating in value from $120 million to $220 million.

The largest part of the appreciation is due to heightened post-Katrina construction costs.

The price hike also includes the higher priced new schools such as the freshman wing at East St. John High School and Emily C. Watkins, both of which are under construction now.