Item C20F.T-1i 80 17A V 1010 &11] 01
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Bulk Item: Yes X No
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Insurance Corporation for Windstorm Insurance Policy.
l'"01jil: K"R11111013011 I 1 .1 -
This policy covers the deductible amount.
PREVIOUS REVELANT BOCC ACTION- Accepted property insurance proposal with per
location deductible.
CONTRACTIAGREEMENT CHANGES: This is an increase of $78,340 (25.2%). The new
renewal dates am 5/29/15-5/29/2016.
CTAFF RECOMMIENDATIONS: Approval to renew the policy as submitted by Citizens Property
Insurance Corporation.
TOTAL COST: $388,466 INDIRECT COST: BUDGETED: Yes A Ao
Internal Service Fund
COST TO COUNTY: $388,466 SOURCE OF FUNDS: Primarily Ad Valorem
REVENUE PRODUCING: Yes No A AMOUNT PER MONTH Year
14,
APPROVED BY: County At(� OMB/Purchasing Risk Management
DISPOSITION:
1309111211 0100101131L W& 10107.1119,M] 0941111,1, 1 W99SN&I I 3111WRIZU91
5 Wo a T E704 I W, a Of R." 1,
Total Dollar Value of Contract: $ $388,466 Current Year Portion: $ 388,466
Budgeted? Yeso No E] Account Codes: 503-08502-530-450-
Grant: $
County Match: $
ADDITIONAL COSTS
Estimated Ongoing Costs: $___/yr For:
(Not included in dollar value above) maintenance, util rial, salaries, etc.)
t e
Division Director
Comments:
Changes Date Out
Needed viewer
Yes[:] Nom
Yes[] Noo/
YesEj No[R1
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14 It I *I 1*YJ;4;J i--I;A i L-74 11VI
Ms. Maria Slavik, CPM
Risk Administrator
Monroe County
1100 Simonton St.
Siite 268 1
1111 North Westshore Boulevard
Suite 20f
Tampa, FL 33607-4711
Phone (813) 287-1041
Facsimile (813) 287-1041
The County currently purchases Primary \Xrmd Coverage on 34 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 Prop" Policy. This Master Policy provides Named Windstorm
coverage with limits of $5 million and a deductible of $1 million per occurrence/per location.
deductible that amounts to 3% of the Replacement Value of the building(s) damaged. The County
paid an annual premium of $310,126 for their 2014/15 policy that expires on May 29, 2015.
Citizens has issued their renewal notice reflecting a premium of $388,466. 71-is represents an
increase of $78,340 (25.2%) compared to the County's 2014/15 premium. The majority (if not all) of
the increase is attributable to Citizens unilaterally increasing the Replacement Value on I I of the
County's buildings by nearly $11 million. Attempts to determine why and how Citizens could
unilaterally increase the Replacement Value proved unsuccessful. However, the Replacement Values
property appraiser in 2011. It was therefore determined that questioning Cidzens'Replacement
Value would not result in Citizens lowering their Replacement Values and thereby reducing their
premium.
In an effort to reduce the County's renewal premium, Eagle American Insurance Agency (the
the current 3% deductible. Eagle American has advised that the premium based on a 5% deductible
would amount to $361,279. This would reduce the County's renewal Wind premium by $27,187
(3388,466 - $361,279). It is not believed that this savings justifies the additional exposure associated
with the higher deductible. For example, Citizens has developed a Replacement Value of $2,615,000
for the Harvey Government Building. The County's appraisers developed a Replacement Value of
$3,705,350 for this building. Based on a 3% deductible, the County would have to absorb the first
$78,450 of wind damage to this building. Based on a 5% deductible, the County would have to
absorb the first $130,750 ♦ any wind damage at this building. The difference between the 3%
deductible and the 5% deductible would amount to $52,300; nearly twice the savings the County
would realize if they were to accept the higher deductible. Since it is highly unlikely that a windstorm
and a Per Location basis, one storm, in all probability, would impact numerous buildings requiring
the County to absorb multiple deductibles.
with a
3% deductible for the 2015/16 policy term.
The County, in conjunction with their insurance agent is currently exploring Windstorm Protective
Device credits that could result in lower premiums. In addition, Eagle American has advised that
they have been contacted by a different insurer that has expressed a desire to replace Citizens as the
County's Wind insurer. No definitive information about this new insurer or the pren-,tiums they
would charge has been obtained as of yet.
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CC: Teresa Aguiar
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