SHREVEPORT, La (KTAL/KMSS) – An internal audit for Shreveport shows the city is paying more for property insurance, but is getting significantly less coverage under its new policy.
During a special meeting Monday, Councilman John Nickelson said if something would happen to city assets today, the city would have a catastrophic uncovered loss.
“I had a hard time sleeping this weekend. I knew that if the weather was as bad as it was reported it might be and a tornado came through our city, we could literally go bankrupt.”
Right now the city is paying $185,000 more for property insurance, but is getting $765,000 less in coverage. Shreveport has $815 million in assets and Frost Insurance is only providing coverage of $50 million.
The Convention Center is valued at $84.7 million and Independence Stadium at $91.6 million.
Council Chairman Jerry Bowman says the council should get proper insurance, but the council still owes Frost fees for the services rendered to the city.
These recommendations were given in the audit: For city administration to obtain additional property insurance coverage and for the city council to consider establishing guidelines regarding what is an adequate amount of property insurance coverage needed.