TITLE
Recommendation to authorize City Manager to purchase "all risk" property insurance for City buildings and contents through the Driver-Alliant Insurance Services, for a total premium of $584,588 for the period from July 1, 2006 through July 1, 2007; and
Authorize City Manager to pay additional premiums to Driver-Alliant Insurance Services, equal to the proposed "all risk" premium rate of $.0429 per $100 applied to the value of any new buildings purchased or constructed by the City or the increased value of any buildings reappraised during the term of this insurance policy. (Citywide)
DISCUSSION
The Department of Human Resources requests City Council authorization to renew and
extend property insurance coverage for City buildings and contents through July 1,2007.
Through its broker of record, Driver-Alliant Insurance Services, the City annually
purchases “all risk” property insurance to cover perils such as fire, vandalism and wind
on all City buildings and contents. The proposed “all risk property insurance policy
provides replacement cost coverage with limits of up to $750 million, subject to a
$50,000 per occurrence deductible for named perils and a limit of $10 million in coverage
for flood. It does not include coverage for the peril of earthquake. Based on the City’s
current insured property valuation, the premium for the “all risk renewal program is
$584,588. This represents an increase of 12 percent over last year‘s premium. This
was expected because of the losses incurred by insurers from Hurricanes Katrina and
Rita. Property insurance coverage for the Queen Mary, which is included in this total, is
approximately $196,606. The RMS Foundation will reimburse the City for the actual
insurance purchase amount associated with this coverage.
Additional premiums at a rate of $.0429 per $100 replacement value would be applied to
the value of any new buildings purchased or constructed by the City or the increased
value of any buildings reappraised in exc...
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