Item C18BOARD OF COUNTY ,RS
Meeting Date: Majjaga
Bulk Item: Yes X No
AGENDA ITEM SUMMARY
Division: fMRUo M Services
Department: Risk Man P••+a.++
Staff Contact Person/Phone#:MAda L. Slavik X3178
AGENDA ITEM WORDING: Approval to pay $344,715 renewal premium to Citizens Property
Insurance Corporation for Windstorm Insurance policy.
ITEM BACKGROUND: The County's property policy has a $1,000,000 per location windstorm
deductible. This policy offers various deductibles by location and insures the County's building and
contents scheduled on the policy for damages resulting from wind.
PREVIOUS REVELANT BOCC ACTION: The previous policy was approved by the BOCC on
5/16/12.
CONTRACT/AGREEMENT CHANGES: The new renewal dates are 5/29/13-5/29/2014. Increase
is primarily due to Citizens unilaterally increasing the insurable limits of the structures valued less than $1,000,000 by 1.6% and raising their rates by 10%.
STAFF RECOM [ENDATIONS: Approval to renew the policy as submitted by Citizens Property
Insurance Corporation.
TOTAL COST: S344.71 s INDIRECT COST: BUDGETED: Yes X No
COST TO COUNTY: $3—_ Internal Service Fund
5 SOURCE OF FUNDS: Primarily Ad Valorem
REVENUE PRODUCING: Yes _ No AMOUNT PER MONTH Year
APPROVED BY: Coun A
OMB/Purchasing Risk Manag emen�
DOCUMENTATION: Included X To Follow Not Required
DISPOSITION: AGENDA ITEM #
Revised 2/27/o 1
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT
Contract with: Citizens Property Contract #
Effective Date: 5/29/2013
Contract Purpose/Description: Expiration Date: 5/29/2014
Windstorm Insurance Renewal
Contract Manager: Maria Slavik 3178 Risk MEMement #1
(Name) (Ext.) (Department/Stop #
for BOCC meetin on 05/15/13 Agenda Deadline: 04/30/13
UUNTRACT COSTS
Total Dollar Value of Contract: $ _$344,715 Current Year Portion: $
Budgeted? YesN No ❑ Account Codes: 08502-530-450_
Grant: $
County Match $$ -
Estimated Ongoing Costs: $ ADDITIONAL COSTS
(Not included in dollar value above) Ford-.-•-----
Changes Date Out
e Needed Re 'ewer
Division Director Yes[] No[� Y-3043
Risk Management *3 Yes[] No[( 1130 13
O.M.B./Purchasing 4 -3o -' 3 Yes[] NOR I
County Attorney
Comments:
I NTERISK CORPORATION
Consultants
Suite 208
Risk Management
Employee Benefits
April 29, 2013
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, 2013. In accordance with the Board of Commissioners
approval the 2012/13 policy that was placed with Citizens Property Insurance Corporation provided coverage. The total
Building limits for the insured locations amounted to $27,100,729 and the total Contents limits for the insured locations
amounted to $8,137,448. The annual premium for the 2012/13 policy was $336,165. The County's insurance agent for
this policy is The Johnson 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 has issued their renewal proposal with collective insurable values for Buildings of $25,018,859 and collective
insurable values for Contents of $6,985,988. Citizens' proposed premium for the 2013/14 policy term is $344,715.
This represents a premium increase of $8,550 (3%). The majority of this increase is attributable to Citizens unilaterally
increasing the insured Building limits on those locations that had total insurable values (Buildings and Contents) of less
than $1 million by approximately 1.6%. In addition Citizens has increased their rates they use in establishing their
premiums by approximately 10%.
Since the Citizens program is the only viable option to purchase Primary Wind coverage in Florida, it is recommended
that Monroe County renew its Primary Wind insurance with Citizens for the period May 29, 2013 to May 29, 2014.
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