Agenda Item #28
Renewal of the 2010-11 Property and Boiler/Machinery Insurance Policy
The actual rate for the district's property and boiler/machinery insurance policies will be presented as soon as negotiations with the insurance carriers are completed. We anticipate being able to procure a policy similar to last fiscal year. The 2009-10 policy was with eleven (11) separate property insurance carriers divided into four (4) layers of coverage for a total premium of $4,341,248.00. The first three property insurance layers would reimburse up to $48 million dollars toward losses from all perils such as fire, non-named windstorms (tornadoes, water spouts), named windstorms (named tropical storms and hurricanes), earthquake etc. The deductible for this coverage excluding named windstorm is $100,000 per incident and the named windstorm deductible is 5% of each damaged building’s replacement value with a minimum loss requirement per storm of $500,000. The fourth layer of insurance would provide the district with an additional $20 million in insurance recovery for all perils excluding named windstorms. This policy also included flood coverage to a maximum reimbursement of $10 million with the same deductible terms as a named windstorm.
The district has 1,475 buildings including certain non-building structures (bleachers, covered walk-ways etc.) with a replacement value of $1,722,430,000. We anticipate being able to procure between $45,000,000 to $55,000,000 in replacement value insurance with a possibility for more coverage. We may also be able to procure an all perils excluding windstorm policy similar to what was in force last year as well. We anticipate the policy renewal will carry similar deductible terms as last year.
The district's current property and boiler/machinery insurance policies will expire on April 25, 2010 or two days prior to the only Board meeting in April. We anticipate the insurance negotiations will not be completed before the district March 23, 2010 meeting which is the last meeting before the current policies expire. Therefore, we are seeking authority to bind the newly negotiated property insurance policies before last year’s policies expire.
Grant the Superintendent the authority to bind renewal policies to the maximum budgeted amount of $4,341,248 on or before April 25, 2010.
Information - 3/9/2010
Consent after Information3/23/2010
Authority for Action
FS 1001.42(11)(d);Board Policy 8710
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Operating - Other
Mark Langdorf, Director of Risk Management, ext. 620
Judy Preston, Associate Superintendent Financial Services, ext. 600