Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - April 26, 2016
April 26, 2016 - Regular Meeting
Agenda Item #11

Purchase of Exess Property Insurance

Briefing Provided Upon Request

Contact and/or Presenter Information
Mitchell O. Palmer, Esquire, ext. 3750

Action Requested
Motion to approve the purchase of excess property insurance coverage in an amount not to exceed $2,747,536 (inclusive of term premium and all Federal/State mandated fees) as shown in the attached proposal from First Florida Insurance Brokers, and to approve the County Attorney or his designee executing all required documents. 

Enabling/Regulating Authority
Ordinance 08-49

Background Discussion

The Board of County Commissioners of Manatee County purchases excess property insurance to protect the County's real and personal property assets against losses caused by natural and man-made perils.  Manatee County maintains an insurance program to protect its buildings against catastrophic financial loss.  There are two parts to this program; property insurance and flood insurance, the combination of which are intended to comply with Section 311 of the Stafford act (42 U.S.C. 5154).  The Stafford act requires that an applicant for Federal FEMA assistance "shall comply with regulations prescribed by the President to assure that, with respect to any property to be replaced, restored, repaired, or constructed with such assistance, such types and extent of insurance will be obtained and maintained as may be reasonably available, adequate, and necessary, to protect against future loss to such property." 

The current excess property insurance program expires on June 1, 2016, and contains the following provisions:  The total loss limit per expiring is $250,000,000 which includes a $90,000,000 Named Windstorm Limit.  The current Named Windstorm deductible is 5% per building and contents, with a minimum named storm deductible of $250,000 with a $20,000,000 deductible maximum.  For all other perils the deductible is $100,000 per occurrence.  The County purchases primary flood coverage on select properties through the National Flood Insurance Program (NFIP) on properties in special flood hazard zones.

One of the methods for determining rates, and risk, is the use of catastrophic modeling programs to determine the Probable Maximum Loss (PML), which is the anticipated loss from the destruction or loss of use of the property.  The PML for a 100 year storm was determined to be $32,074,668 based on a Statement of Value (SOV), which shows the County's insurable values of $1,149,357,696.  The SOV sets the basis for determining the "rate per $100 of value," and ultimately our premium for excess property insurance. 

The proposed excess property insurance program for this renewal contains the following provisions:  The total loss limit remains at $250,000,000 which includes a $90,000,000 Named Windstorm Limit, which is per expiring, and $75,000,000 in flood coverage, which is also per expiring.  The Named Windstorm deductible is 3% per building and contents, with a minimum named storm deductible of $250,000 with a $20,000,000 deductible maximum.  For all other perils the deductible is $100,000 per occurrence.  This is an improvement over the expiring program in that it reduces the Named Windstorm deductible from 5% to 3%. 

In addition, for the excess property renewal, the County is including terrorism coverage for several County-owned locations as follows: 


Historic Courthouse

Judicial Center

Administration Building

Emergency Operations Center

Lake Manatee Dam

Lena Road WWTP

North County WWTP

SW Regional WWTP

Waterline WWTP


Even with the reduced Named Windstorm Deductible and the inclusion of terrorism coverage, substantial premium savings have been obtained as shown below: 


Excess Property Annual Premium

[not inclusive of fees]

Rate per

$100 of value

% change rate per $100

$ change in Annual Premium

% change in Annual Premium















The Risk Management Division recommends the Board approve the proposed renewal for our excess property insurance program.


County Attorney Review
Other (Requires explanation in field below)

Explanation of Other
This is a County Attorney item.

Reviewing Attorney

Instructions to Board Records

Please return a stamped copy of this agenda memorandum certifying its approval by the Board of County Commissioners to Linda Klasing - Risk Manager - County Attorney's Office, Division of Risk Management - linda.klasing@mymanatee.org


Cost and Funds Source Account Number and Name
$2,747,536 Fund 5050001500 Risk Management General Liability

Amount and Frequency of Recurring Costs
$2,747,536 One Time Payment

Attachment:  MCBOCC FY17 Excess Property Proposal - 04.06.16.pdf