TITLE
Recommendation to authorize City Manager, or designee, to purchase “all risk” property insurance for City buildings, contents, and vehicles through the Alliant Insurance Services’ Public Entity Property Insurance Program, for a total premium not to exceed $1,341,143 for the period of July 1, 2017 to July 1, 2018, plus any additional cost to reduce the Queen Mary deductible from $500,000. (Citywide)
DISCUSSION
The Department of Human Resources requests City Council authorization to renew and extend “all risk” property insurance coverage for City buildings and contents with various insurers.
Through its property insurance broker, Alliant Insurance Services, the City annually purchases “all risk” property insurance to cover perils such as fire, vandalism and wind damage on all City buildings, contents, and vehicles. The proposed “all risk” property insurance policy provides replacement cost coverage with limits of up to $1 billion, subject to a $50,000 per occurrence deductible for named perils, and a limit of $10 million in coverage for flood. The policy does not include coverage for the peril of earthquake, which is addressed in a separate transmittal. The policy also provides cyber liability coverage, boiler and machinery coverage and some limited pollution coverage. This is consistent with coverage provided in the current year policy. The property insurance premium will not exceed $868,000, which is $51,209 more than the cost of the expiring policy. The increase is due to an increase in the value of City property, as well as recent loss history.
The proposed property insurance policy includes coverage for the Queen Mary at full replacement value, but with the deductible for only the Queen Mary increasing from $50,000 to $500,000. The premium for the Queen Mary increased substantially from about $236,000 to an estimated $752,168, at least in part due to reports of its structural condition. The property insurance for the Queen Mary will be fully reim...
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