05-26-2009 Special School Board Meeting
Agenda Item #17


Title
Increase the Property Insurance Budget by $50,000 in Order to Purchase a $20,000,000 All Perils Excluding Named Windstorm Insurance Policy

Discussion
On April 25, 2009, the district purchased $48,000,000 in property insurance coverage with ten different insurance carriers.  These policies will protect the district from all perils excluding terrorist acts for the district's $1,806,924,709 in property related values.  The cost for this purchase was $4,281,713.74 which was $5,400 less than what was budgeted for the purchase of property insurance during our current fiscal year.  The Superintendent requests that the Board increase the property insurance budget by $50,000 in order to purchase a $20,000,000 all perils excluding named windstorm policy that will be added to the district's existing insurance policies.  This policy will provide the district up to $68,000,000 in property insurance to cover the district's exposure to fire, earthquake, tornado, and other similar risks.  The additional policy will not cover losses stemming from named windstorms such as hurricanes or tropical storms.

Recommendation
Increase the property insurance budget by $50,000.  The additional budget will then be used to procure additional property insurance.

Meeting Date(s)
Information - 4/28/2009
Information5/12/2009
Consent after Information5/26/2009

Authority for Action
Board Policy 8710 - Insurance Florida Statute 1001.42(11)(d)

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Capital Projects

FY
Amount
Budgeted
Fund
Cost Center
Project
Function
Object
Program
09-10$50,000No3799855xxxxxx7900322000

Contact

Mark Langdorf, Director Risk Management - Ext 616

Judy Preston - Associate Superintendent of Financial Services - Ext 600