About the Fund

The Wisconsin Office of the Insurance Commissioner administers the Local Government Property Insurance Fund (LGPIF). The LGPIF was established to provide property insurance for local government entities that include counties, cities, towns, villages, school districts, and library boards. The fund insures local government property such as government buildings, schools, libraries, and motor vehicles. The fund covers all property losses except those resulting from flood, earthquake, wear and tear, extremes in temperature, mold, war, nuclear reactions, and embezzlement or theft by an employee.

The fund covers over a thousand local government entities who pay approximately $25 million in premiums each year and receive insurance coverage of about $75 billion. State government buildings are not covered; the LGPIF is for local government entities that have separate budgetary responsibilities and who need insurance to moderate the budget effects of uncertain insurable events. Claims for state government buildings are charged to another state fund that essentially self-insures its properties.

The fund offers three major groups of insurance coverage: building and contents (BC), inland marine (construction equipment), and motor vehicles.

In effect, the LGPIF acts as a stand-alone insurance company, charging premiums to each local government entity (policyholder) and paying claims when appropriate. Although the LGPIF is not permitted to deny coverage for local government entities, these entities may go onto the open market to secure coverage. Thus, the LGPIF acts as a "residual" market to a certain extent, meaning that other sources of market data may not reflect its experience.