Subject:
Title
Renewal of Annual Property Insurance Program effective 6/1/2024
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Fiscal Impact:
Due to the current market conditions and based on the information available from the County's insurance broker, the total cost of the Property Insurance Program Premiums will not exceed $4,221,110. The premiums will be paid from budgeted funds in Business Area 5050 / Cost Center 389610 from both FY 23-24 and FY 24-25 based on a pro-rata share as the coverage runs through time periods in both fiscal years. If funds in excess of the already budgeted amount are necessary (not to exceed the stated maximum), insurance reserves will be utilized.
Dept/Office:
Human Resources
Requested Action:
Recommendation
It is requested the Board of County Commissioners authorize the Risk Manager to bind and secure placement of the County's Property Insurance coverage as presented and recommended by Brown and Brown, the County's property/casualty insurance broker, with an effective date of 6/1/2024, at a cost not to exceed $4,221,110.
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Summary Explanation and Background:
Risk Management instructed the County's insurance broker, Brown and Brown, to secure coverage and renewal quotes for the Property Insurance program in order to mitigate the County's loss exposure, maintain the County's ability to recover from a major catastrophic loss, and to ensure the County is in compliance with FEMA's "Obtain and Maintain" insurance requirements.
The County's Property Insurance program provides coverage for both windstorm and non? windstorm related damage, however, the main driver of the increase in premium is related to the windstorm coverage. The Stafford Act requires that applicants insure facilities and their contents with the "types and extent" of insurance that is reasonably available, adequate, and necessary to protect against future loss to the property. Current market conditions have stabilized but remain unfavorable. Rate increases in 2023 were in the 40% to 100% range. Hurri...
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