§ 103225 District Insurance Authority

• •The district can insure any accident or damage to its system.
• •The district can also insure any loss of money it suffers, no matter why.
• •When the district issues bonds, it can require insurance and pay the premiums as part of the bond process.
• •The district can follow other insurance rules listed elsewhere in the Government Code.

A water district's pipes get broken in a flood and the district loses money because customers can't get water.

The district can use this law to buy insurance that pays for fixing the pipes and also covers the money it loses while the system is down.