Item P104
CM
ounty of onroe
BOARD OF COUNTY COMMISSIONERS
Mayor Heather Carruthers, District 3
Mayor Pro Tem George Neugent, District 2
TheFloridaKeys
Danny L. Kolhage, District 1
David Rice, District 4
Sylvia J. Murphy, District 5
County Commission Meeting
May 18, 2016
Agenda Item Number: P.10
Agenda Item Summary #1603
BULK ITEM: DEPARTMENT:
Yes Risk Management
TIME APPROXIMATE:STAFF CONTACT:
Maria Slavik
none
AGENDA ITEM WORDING:
Rescission of Item O-8 from BOCC 4/20/2016 meeting due to
incorrect renewal premium for Windstorm Insurance Policy and approval to pay correct renewal
premium amount of $438,144.00 for Windstorm coverage on County buildings.
ITEM BACKGROUND:
windstorm deductible which includes both the value of the building and its contents. The total
building limits insured by Citizens is $24,839,000.00. The total contents (business personal property)
limits insured by Citizens is $7,760,847.00. The County purchases Primary Wind Coverage on 43 of
its buildings and contents from Citizens Property Insurance. A list of the 43 buildings is attached.
The policy is purchased to supplement the wind coverage contained in the County's Master Policy.
On 4/20/2016, the BOCC approved the renewal premium but the Agenda Item Wording had the
incorrect amount of $414,138.00, which was last year's renewal rate. However, the Financial Impact
and Agenda Backup documents contained the correct amount of $438,144.00.
PREVIOUS RELEVANT BOCC ACTION:
On 4/20/2016, the BOCC approved the Windstorm
insurance proposal with per location deductible that contained an incorrect premium amount in the
agenda item summary.
CONTRACT/AGREEMENT CHANGES:
Correction of prior AIS to reflect correct premium amount of $438,144.00
STAFF RECOMMENDATION:
Approval to pay the renewal premium of $438,144.00.
DOCUMENTATION:
Interisk Corporation Letter
Building List
FINANCIAL IMPACT:
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Effective Date: 5/29/16
Expiration Date: 5/29/17
Total Dollar Value of Contract: $438,144.00
Total Cost to County: $438,144.00
Current Year Portion: $414,138.00
Budgeted:
Yes
Source of Funds: Internal Service Fund/Primarily Ad Valorem
CPI: N/A
Indirect Costs: N/A
Estimated Ongoing Costs Not Included in above dollar amounts: N/A
Revenue Producing: N/A If yes, amount:
Grant:
N/A
County Match
: N/A
Insurance Required:
N/A
Additional Details:
05/18/16 503-08502 · RISK MGMT INSURANCE $438,144.00
Windstorm Ins
REVIEWED BY:
Maria Slavik Completed 05/03/2016 11:39 AM
Chris Ambrosio Completed 05/03/2016 11:56 AM
Bob Shillinger Completed 05/03/2016 12:10 PM
Budget and Finance Completed 05/03/2016 4:06 PM
Kathy Peters Completed 05/03/2016 5:05 PM
Board of County Commissioners Pending 05/18/2016 9:00 AM
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IC
N T E R I S KO R P O R A T I O N
Consultants 1111 North Westshore Boulevard
Suite 208
Risk Management Tampa, FL 33607-4711
Employee Benefits Phone (813) 287-1040
Facsimile (813) 287-1041
May 3, 2016
Ms. Maria Slavik, CPM
Risk Administrator
Monroe County
th
1111 12 Street
Suite 408
Key West, Florida 33040
Subject: Renewal of Citizens Wind Policy
Dear Maria:
The County currently purchases Primary Wind Coverage on 43 of its buildings and contents from
Citizens Property Insurance Corporation. This policy is purchased to supplement the wind coverage
coverage with limits of $5 million and a deductible of $1 million per occurrence/per location.
Citizens provides up to $1 million of coverage for each building scheduled on the policy subject to a
deductible that amounts to 3% of the Replacement Value of the building(s) damaged. The County
paid an annual premium of $414,138 for their 2015/16 policy that expires on May 29, 2016.
Citizens have issued their renewal notice reflecting a premium of $438,144. This represents an
increase of $24,006 (5.85/16 premium. The premium is based on
total building limits of $24,839,000 and total contents (business personal property) limits of
$7,760,847. The reason for the increase is attributable to Citizens unilaterally increasing the
Replacement Value on a number of and raised their rates that they use to
determine the premiums. Attempts to determine why and how Citizens could unilaterally increase
the Replacement Value proved unsuccessful. However, the Replacement Values developed by
independent property
not result in Citizens lowering their Replacement Values and thereby reducing their premium.
It is therefore believed that the County has no option but to renew its Primary Wind coverage as
being proposed by Citizens for the policy term of 5/29/16 to 5/29/17.
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Please do not hesitate to call if you have any questions or concerns.
Cordially,
INTERISK CORPORATION
Sidney G. Webber
CPCU, ARM
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