Title:
Consider and take action on a resolution authorizing the purchase of windstorm and hail, including flood and storm surge, property insurance through McGriff, in an amount not to exceed $1,513,482 (Director of Human Resources and Civil Service)
Background:
Approval of this item will authorize the City to renew its Windstorm Insurance Coverage for the 2025-2026 policy period. The annual RFP process was conducted by McGriff Insurance Services, with underwriting specifications submitted to over 50 global and domestic insurance carriers. Proposals and indications were received from various insurance carriers representing different limits of coverage and deductible levels.
The City will experience a premium reduction for the 2025-2026 renewal period and a reduction in the City’s Self-Insured Retention. The following comparison table outlines the City's expiring premium per $100 of insured value compared to the 2025-2026 renewal:
|
Period |
2024-2025 (Expiring) |
2025-2026 (Renewal) |
|
TIV |
$249,319,773 |
$249,319,773 |
|
Total Limit |
$45,000,000 |
$45,000,000 |
|
Deductibles |
5% / $100K Minimum |
5% / $100K Minimum |
|
|
plus Insured Retention |
plus Insured Retention |
|
|
20% of the $10M Primary |
10% of the $10M Primary |
|
Premium |
$1,598,020 |
$1,513,482 |
Carriers Participation:
• Expiring Coverage (2024-2025): Sompo, Lexington, Kemah, Lloyds, Core, Westfield, Arch, Axis, Rivington, James River, Markel
• Renewal Coverage (2025-2026): Sompo, Lexington, Kemah, Westfield, Core, Waypoint, Lloyds, Markel, Arch, Axis, Rivington, James River
Coverages:
• Limit subject to underlying schedule (TIV: $249,319,773 per SOV) and is based on per occurrence; Replacement cost; No coinsurance.
• Flood Coverage: $5,000,000 per occurrence and annual aggregate, including Storm Surge for miscellaneous locations/items totaling $24,206,590 in value (per SOV on file, including SFHA Zones).
• Ordinance of Law: A (included in loss limit), B & C combined $10,000,000 per occurrence.
• Newly Acquired or Constructed Buildings: $5,000,000 for 60 days.
• Exterior Damage Requirement: Coverage applies only if exterior damage occurs.
• Various Coverage Extensions Apply.
Deductibles:
• Wind/Hail/Wind Driven Rain: $100,000 except Wind/Hail/Wind Driven Rain due to a Named Storm: 5% subject to $100,000 minimum.
• Flood Deductible: $100,000 (except subject to Named Storm deductible if caused by a Named Storm).
CONTRACT ORIGINATION: N/A
Attachments:
1. Proposed Resolution
2. Windstorm Insurance Renewal Summary from McGriff
FUNDING
{ X } Funds in the amount of $1,513,482 are available from Insurance Account 53330 as follows: General Fund 1650000-53330 ($938,359); Utility Fund 10201650-53330 ($430,078); The Ballpark ($71,157); and 4B 2310440-53330 ($73,888)
STRATEGIC PLANNING
{X } NOT APPLICABLE