Item O11M
C ounty of f Monroe
ELj » °o
�
BOARD OF COUNTY COMMISSIONERS
/� r i � ��
Mayor George Neugent, District 2
The Florida. Ke Se
y
I
Mayor Pro Tern David Rice, District 4
Danny L. Kolhage, District I
Heather Carruthers, District 3
Sylvia J. Murphy, District 5
County Commission Meeting
May 17, 2017
Agenda Item Number: 0.11
Agenda Item Summary #2940
BULK ITEM: Yes DEPARTMENT: Risk Management
TIME APPROXIMATE: STAFF CONTACT: Maria Slavik
N/A
AGENDA ITEM WORDING: Approval of renewal of Primary Windstorm Insurance Policy with
a premium of $503,449.00 from Citizens Property Insurance Corporation and for the Risk
Administrator to sign all necessary forms.
ITEM BACKGROUND: The County currently has a Primary Windstorm Insurance Policy
providing coverage on 44 of its buildings and contents from Citizens Property Insurance Corp., that
expires on May 29, 2017. This Windstorm Policy is purchased to supplement the windstorm
coverage contained in the County's Master property insurance policy. The Master Policy provides
Named Windstorm coverage with limits of $5 million and a deductible of $1,000,000.00 per
occurrence /per location.
This renewal Primary Windstorm Policy annual premium is $503,449.00. The building limits
insured are $25,699,000.00 for a premium of $336,176.00, and the total Contents (business personal
property) limits insured are $7,760,847.00 for a premium of $94,564.00. Fees and assessments total
is $72,709.00.
PREVIOUS RELEVANT BOCC ACTION: On 4/20/2016, the BOCC approved the current
Windstorm insurance proposal with a per location deductible.
CONTRACT /AGREEMENT CHANGES:
This is an increase of $50,460 (11.1 %) compared to the County's 2016 -2017 premium. The new
renewal dates are 5- 29- 17- 5- 29 -18.
STAFF RECOMMENDATION: Approval to renew the Primary Windstorm policy as submitted
by Citizens Property Ins. Corp. for the period of 5/29/17 to 5/29/18.
DOCUMENTATION:
Interisk Corporation Recommendation Letter
FINANCIAL IMPACT:
Effective Date: 5/29/17
Expiration Date: 5/29/18
Total Dollar Value of Contract: $503,449.00
Total Cost to County: $503,449.00
Current Year Portion: $452,989.00
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: No
Grant: N/A
County Match: N/A
Insurance Required: NA
Additional Details:
If yes, amount:
05/17/17 503 -08502 - RISK MGMT INSURANCE
Windstorm
REVIEWED BY:
$503,449.00
Maria Slavik
Completed
05/01/2017 5:07 PM
Chris Ambrosio
Completed
05/01/2017 5:24 PM
Bob Shillinger
Completed
05/02/2017 1:51 PM
Budget and Finance
Completed
05/02/2017 2:28 PM
Kathy Peters
Completed
05/02/2017 7:16 PM
Board of County Commissioners
Pending
05/17/2017 9:00 AM
INTERISK CORPORATION
Consultants
Risk Management
Employee Benefits
April 27, 2017
Ms. Maria Slavik, CPM
Risk Administrator
Monroe County
1111 12 Street
Suite 408
Key West, Florida 33040
Subject: Renewal of Citizens Wind Policy
Dear Maria:
1111 North Westshore Boulevard
Suite 208
Tampa, FL 33607 -4711
Phone (813) 287 -1040
Facsimile (813) 287 -1041
The County currently purchases Primary Wind Coverage on 44 of its buildings and contents from
Citizens Property Insurance Corporation. This policy is purchased to supplement the wind coverage
contained in the County's Master Property Policy. This Master Policy provides Named Windstorm
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 approximately 3% of the Replacement Value of the building(s) damaged.
The County paid an annual premium of $452,989 for their 2016/17 policy that expires on May 29,
2017.
Citizens have issued their renewal notice reflecting a premium of $503,449. This represents an
increase of $50,460 (11.1%) compared to the County's 2016/17 premium. There are 2 major factors
that contributed to this increase.
1. Citizens has unalterably increased the Replacement Value of the County's buildings by
approximately 1 %. Citizens uses the Replacement Value of the buildings to develop their
premium.
2. Citizens has increased their rates by approximately 10 %.
The renewal was broken down as follows;
Item
Limits
Premium
Buildings
$25,699,000
$336,176
Contents
7,760,847
94,564
Fees and Assessments
72,709
Total
$503,449
It is believed that the County has no option but to renew it Primary Wind coverage as being
proposed by Citizens. However, the County should start seeking non - insurance alternatives to
replace Citizens when the policy renews on 5/29/18. Currently, Citizens is performing field
inspections of the County's buildings. One of the objectives of this inspection is to ensure the
Replacement Values of the buildings are accurate. It is anticipated that when Citizens completes its
inspection, the County's Replacement Value of its buildings will significantly increase that in turn will
significantly increase the premium. Citizens has agreed to defer any premium increase based on their
inspection until 5/29/18.
The renewal premium is based on total building limits of $25,699,000 and total contents (business
personal property) limits of $7,760,847.
Please do not hesitate to call if you have any questions or concerns.
Cordially,
INTERISK CORPORATION
Sidney G. Webber
CPCU, ARM