Item C8L-A
�13 13 1 Lei Z 151 IM,
Meeting Date: May 21,2014
R"-ulk Item: Yes X No
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Division: Employee Services
Department: Risk Management
Staff Contact Person/Phone#:Maria L. Slavik X3178
rrlo� 10. 1, Yfn'i ACMMITTL preTATTLE To Citizens-f roperry
Insurance Corporation for Windstorm Insurance Policy.
ITEM BACKGROUND: The County's property policy has a $1,000,000 per location windstorm
deductible which includes both the value of the building and its contents. The total Building limits
insured by Citizens are $24,244,000 and the total Contents limits insured by Citizens are $6,710,654.
This policy covers the deductible amount.
PMVIOUS REVELANT BOCC ACTION: Accepted property insurance proposal with per
location deductible.
CONTRACT/AGREEMENT CHANGES: This is a decrease of $34,589 (10%). The new renewal
dates are 5/29/14-5/29/2015.
STAFF RECOMMENDATIONS: Approval to renew the policy as submitted by Citizens Property
Insurance Corporation.
TOTAL COST: $310,126 INDIRECT COST: BUDGETED: Yes X No
Internal Service Fund
COST TO COUNTY: 1$310,126 SOURCE OF FUNDS: Primarily Ad Valorem
REVENUE PRODUCING: Yes No X AMOUNT PER MONTH Year
pu&,
APPROVED BY: County Atty LV OMB/Plasing
Included X To Follow,
I
Revised 2/27/01
Risk Management
Not Required
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CONTRACT SUMMARY
Contract with: Citizens Property
Contract #
Effective Date:
5/29/2014
Expiration Date:
05/29/2015
Contract Purpose/Description:
Windstorm Insurance Renewal
Contract Manager: - Maria Slavik
3178
Risk Management #1
(Name)
(Ext.)
(Department/Stop
for BOCC meeting on 05/21/2014
Agenda Deadline: 05/06/2014
CONTRACT COSTS
Total Dollar Value of Contract: $ $310,126 Current Year Portion: $ 344,715
Budgeted? YesN No F1 Account Codes: 503-08502-530-450-
Grant: $
County Match: $
ADDITIONAL COSTS
Estimated Ongoing Costs: $jyr For:
(Not included in dollar value above) (eg. maintenance, utilities, janitorial, sE
Changes
Date In
Needed
Division Director
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YesE] No2f
Risk Management
YesM Nopl/
O.M.B./Purchasing
Yes[:] No®
County Attorney
YesEj No[^�
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Date Out
Reviewer
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Consultants
Suite 208
Risk Management
Employee Benefits
May 2, 2014
Ms. Maria Slavik, CPM
Risk Administrator
Monroe County
1100 Simonton St.
Suite 268
Key West, Florida 33040
Subject: Renewal of Wind Insurance
Dear Maria:
• • •
1111 North Westshore Boulevard
Tampa, FL 33607-4711
Phone (813) 287-1040
Facsimile (813) 287-1041
The County's Primary Wind Insurance expires on May 29, 2014. In accordance with the Board of Commissioner's
approval, the 2013/14 policy was placed with Citizens Property Insurance Corporation. The Citizens program was
established by the State of Florida and is one of the few, if not the only insurer, that provides such coverage. The total
Building limits for the insured locations amounts to $25,018,859 and the total Contents limits for the insured locations
amounts to $6,985,988. The annual premium for the 2013/14/13 policy is 344,715.00. The County's insurance agent
for this policy is The Eagle American Insurance Agency located in Marathon.
The Citizens program is backed by the State of Florida and the terms, conditions and rates are set by the State and apply
to any organization participating in the Citizens' program. The maximum limits available under the Citizens' program
are $1 million per location that includes both the value of the building and its contents. Deductibles vary by location
but generally run 3 % of the value of the structure being insured.
Citizens have issued their renewal proposal with collective insurable values for Buildings of $24,244,000 and collective
insurable values for Contents of $6,710,654.
Citizens' proposed premium for the 2014/15 policy term is $310,126.00. This represents a premium decrease of
$34,589 (10%). Based on our telephone conversation with Ms. Sue Cherrybon of the Eagle American Insurance
Agency, it was learned that Citizens recently implemented a new rating system and it is believed that this new system
generated lower premiums for the County. In addition, there has been a reduction in the fees imposed by the State of
Florida that is contributing to the lower overall premiums.
It is recommended that Monroe County's Board of County Commissioners approve the renewal of its Wind insurance
for the policy term of May 29, 2014 to May 29, 2015 as being proposed by Citizens.
Please give me a call if you have any questions or wish to discuss this issue in more detail.
Cordially,
INTERISK CORPORATION
Sidney G. Webber
CPCU, ARM
CC: Teresa Aguiar