Subject:
Title
Renewal of Annual Property Insurance Program Effective 6/1/2020
End
Fiscal Impact:
These premiums will not require changes to budgeted revenue requested in FY 20-21. Premiums not to exceed $ 2,204,604; funds budgeted in Business Area 5050 / Cost Center 389610.
Dept/Office:
Office of Human Resources / Risk Management
Requested Action:
It is requested that the Board of County Commissioners authorize the Risk Manager to bind and secure placement of the County's Property insurance coverage with an effective date of 6/1/2020, at a premium not to exceed $ 2,204,604.
Recommendation
End
Summary Explanation and Background:
Risk Management instructed the County's property/casualty insurance broker, PRIA (Public Risk Insurance Agency), 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 ensure the County is in compliance with FEMA's "Obtain and Maintain" insurance requirements.
Current market conditions remain unfavorable due to world-wide catastrophic losses in 2017, 2018 and 2019, as well as the large losses in Brevard County arising out of hurricanes Matthew, Irma and Dorian. Uncertainty among insurance carriers for future profitability due to the large potential business interruption losses arising out of the global pandemic, COVID-19, is also a factor driving rate increases.
After evaluating the County's needs for Property and Flood coverage, PRIA surveyed property insurance markets and solicited quotes from 26 different carriers. PRIA has presented Brevard County with a 6/1/2020 property insurance renewal proposal which reflects a premium cost of (Not to Exceed) $ 2,204,604; this is an increase of $235,880 (12%) over expiring premium. This change is a consequence of a combination of a small increase in total insurable property values and a rate increase of 11%, the result of the afore-mentioned infl...
Click here for full text