Construction Costs Drive 7% Increase in County Property Insurance Renewal

Northeast Radio SD News - Watertown, SD - Codington County will see an increase in property insurance premiums for the coming year, a move Raleigh Kettwig of Acrisure (formerly Fischer Rounds) attributed to rising construction costs and inflation.

The Board of Commissioners approved the renewal with EMC Insurance for a total of $175,927. This represents a 7% increase over last year’s rates. The total insured value for county property rose from roughly $77.5 million in 2025 to $80.8 million in 2026.

Kettwig explained that the 4% increase in the “exposure” (the value of the buildings) plus a 3% rate adjustment resulted in the 7% premium hike.

“As everyone knows, building construction costs continue to go up,” Kettwig told the board. “There is an automatic inflation guard in the policy that helps try to keep up with that inflation.”

A point of discussion during the renewal was the “Property Terrorism” coverage option. While many private entities exclude it to save money, Kettwig noted that for a municipality, it remains a recommended safeguard. The board opted to keep the coverage, which costs $1,543 of the total premium.