Insurance Rates for Chapter

Brothers,

Based on the email flying around this evening there is a tremendous
controversy raging in the Fraternity that deals with what all the
Active Chapters through their House Corporations have to pay for
their Housing and Liability Insurance.

A few short years ago the Risk Management (RMF) cost for ASU was
about $5,000.00 per year which for a 100+ man house like ASU was a
good deal at about $50.00 per person for the School year. Last year
(2001-2002) the cost was up to $17,906.00 and we just got the bill
for the 2002-2003 School year and the cost has exploded to $27,887.00
which works out to about $300.00 per man for the year. The following
are the rates for the three Arizona Chapters:

Beta Phi- $29,528.00 up from $18,390.00. 62% increase
Epsilon Upsilon- $27,887.00 up from $17,906.00 64% increase
Zeta Omicron -$8,773.00 up from $5,390.00 61% increase

Based on what other House Corps around the US are saying it seems
that the numbers are based purely on Chapter Population with no
allowance given for real risk management (Fire Alarms, sprinklers, no
previous claims etc – until two weeks ago ASU has not made a claim
since I got back involved in 1996…)

Are there any Brothers in the area that work in liability insurance
that would like to take a swing at getting us a lower rate. As much
as I (and I am sure the other House Corps in the Province) might like
to stay with the Fraternity’s RMF plan at this pace of increase we
will find our Chapter Houses begin to close based on simple
economics, particularly for the smaller Chapters like ZO up at NAU
where this increase seems like it will equal about $400 per man and
that Chapter is housed in a dry University owned Dorm!

In hoc,

David W. Riddle (ASU ’87)