Title:
Consider and take action on a resolution authorizing the purchase of windstorm insurance coverage through Gallagher for an annual premium of $1,199,707 for a one-year term (Director of Human Resources)
Background:
Approval of this item will authorize the placement of windstorm insurance coverage for City properties for a one-year policy term, from April 6, 2026 - April 5, 2027.
The City received a quote from Gallagher for windstorm insurance coverage for City facilities with a total insured value of $239,226,050. The proposed coverage provides wind and hail protection for insured City facilities and includes coverage for flood caused by rising water, such as storm surge, based on current property values.
During the renewal process, staff evaluated multiple options related to retention levels and coverage structure. Staff elected to remove the 8% retention for non-named storms to reduce the City's exposure to windstorm losses. The selected option results in a total annual premium of $1,199,707.
The expiring premium for comparable coverage was $1,513,208. The proposed renewal represents a reduction in premium while also improving coverage by removing the retention applicable to non-named storms.
Staff recommends approval of the proposed resolution authorizing the purchase of windstorm insurance coverage as quoted.
CONTRACT ORIGINATION:
Attachments:
1. Proposed Resolution
2. Gallagher Windstorm Insurance Quote Proposal
3. Deductible Structure Comparison
FUNDING
☒ Funds in the amount of $1,199,707 are available from Insurance Account 5330 as follows: General Fund 16500000-53330 ($743,818); Utility Fund 10201650-5330 ($340,914); The Ballpark at League City 23254610-53330 ($56,405); and 4B 2310440-53330 ($58,570)
STRATEGIC PLANNING
☒ Addresses Strategic Planning Critical Success Factor - Financially Sustainable