Item C02BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: May 16, 2012 Division: Employee Services
Bulk Item: Yes X No — Department: Risk Management
Staff Contact Person/Phone#:Maria L. Slavik X3178
AGENDA ITEM WORDING: Approval to pay $336,165 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 covers the deductible amount. 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
5/18/2011.
CONTRACT/AGREEMENT CHANGES: The new renewal dates are 5/29/12-5/29/2013. Increase
of $52,576 to include two added structures. Remaining increase in premium is $31,751 —10%.
STAFF RECOMMENDATIONS: Approval to renew the policy as submitted by Citizens Property
Insurance Corporation.
TOTAL COST: $336,165 INDIRECT COST: BUDGETED: Yes X No
DIFFERENTIAL OF LOCAL PREFERENCE: N/A
Internal Service Fund
COST TO COUNTY: $336,165 SOURCE OF FUNDS: Primarily Ad Valorem
REVENUE PRODUCING: Yes _ No X AMOUNT PER MONTH Year _
c� V
APPROVED BY: County A OMB/Pur asing Risk Management
DOCUMENTATION:
DISPOSITION:
Revised 7/09
Included X Not Required
AGENDA ITEM #
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: Citizens Property Contract #
Effective Date:
Expiration Date:
Contract Purpose/Description:
Windstorm Insurance Renewal
Contract Manager: Maria Slavik
(Name)
for BOCC meeting on 05/16/12
5/29/2012
5/29/2013
3178 Risk Management #1
(Ext.) (Department/Stop #)
genda Deadline: 05/01/12
CONTRACT COSTS
Total Dollar Value of Contract: $ $336,165 Current Year Portion: $ _
Budgeted? YesN No ❑ Account Codes: 503-08502-530-450-
Grant: $
County Match: $
ADDITIONAL COSTS
Estimated Ongoing Costs: $ /yr For:
(Not included in dollar value above) (PQ ma;nrnna- ..«:,:.: -
CONTRACT REVIEW
Changes Date Out
Date In Needed Re iewer
Division Director M-� k Yes❑ Nod q
r
Risk Management 1 Yes❑ No C
O.M.B./Purpling Uoal/ Yes❑ No 7
County Attorney Yes[:] No
11
Comments:
0MR Fnrm RPvi 5/)-/ni *Ann7,
I NTERISK CORPORATION
Consultants
Risk Management
Employee Benefits
April 12, 2012
Ms. Maria Slavik, CPM
Risk Administrator
Monroe County
1100 Simonton St.
Suite 268
Key West, Florida 33040
Subject: Renewal of Flood Insurance
Dear Maria:
1111 North Westshore Boulevard
Suite 208
Tampa, FL 33607-4711
Phone (813) 287-1040
Facsimile (813) 287-1041
The County's Primary Wind Insurance expires on May 29, 2012. The current coverage is provided by
Citizens Property Insurance Corporation and currently provides coverage for fifty (50) different locations.
The total Building limits insured by Citizens are $25,235,052 and the total Contents limits insured by
Citizens are $7,875,448. The current annual premium of the expiring policy is $283,589. The County's
insurance agent for this policy is The Johnsons 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 that now includes fifty-two (52) locations. One of the new
locations is an aircraft hanger located at Marathon Airport. The building is being insured for $950,000 and
its contents are being insured for $50,000. The other new location is a Public Works structure also located
in Marathon. The building at this location is being insured for $758,000 and its contents are being insured
for $242,000.
Citizens is proposing an annual premium of $336,165 for the County's 2012/13 Primary Wind insurance.
This represents an increase of $52,576 (18.5%). The premium for the two structures that are being added to
the policy amount to $20,825. The remaining increase in this year's premium ($31,751) is attributable to
Citizens raising its rates 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,
2012 to May 29, 2013.
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