Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - May 21, 2013
REVISED May 21, 2013 - Regular Meeting
Agenda Item #13

Purchase of Excess Property Insurance


Contact and/or Presenter Information

Raymond Carter, Risk Manager

Action Requested

Motion to approve the purchase of excess property insurance in an amount not to exceed $3,558,353 (inclusive of term premium and all Federal/State mandated fees) which is Option #1 of the attached proposal from First Florida Insurance Brokers, and to approve the County Attorney or his designee execute 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 of this program; property insurance and flood insurance, the combination of which are intended to comply with Section 311 (42 U.S.C 5154) of the Stafford Act. 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 1st 2013 and contains the following provisions. The total loss limit per expiring is $250,000,000 which includes a $60,000,000 limit with wind (named storm) and $190,000,000 excluding wind. The named storm deductible is 5% per building and contents, with a minimum named storm deductible of $250,000. 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. The excess property insurance program provides an additional $50,000,000 of flood coverage in excess of the NFIP coverage of $500,000 per building maximum.


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 the 100 year storm was determined to be $45,989,694 for our properties at risk. The current Statement of Value (SOV), which shows the County’s insurable values, was determined to be $830,206,903. The SOV sets the basis for determining the “rate per $100 of value”, and ultimately our premium for excess property insurance.


Based on the PML modeling program, and current market conditions, First Florida Insurance Brokers met with staff and discussed methodology to market our excess property program. Ultimately, the following options were determined to the best for our program:


Option #1 is for the excess property program with loss limits of $250,000,000; which includes $60,000,000 limit with wind and $190,000,000 excluding wind. This option maintains our Flood and Extra Expense sublimits at $50,000,000. There are a few slight sublimit reductions; otherwise the program is very similar to expiring.  First Florida Insurance Brokers has also secured Auto Physical Damage (APD) coverage for the County’s ambulances while traveling ‘over the road’.  This coverage is subject to a $50,000 deductible and provides coverage on a replacement cost basis.  This is an enhancement to this year’s program and was not included in the expiring program.  

 Option #2 was also presented, and is the same as Option #1, except it increases the ‘wind’ coverage from $60mil to $67.5mil.  The additional premium for this option is $200,000. 

 The chart below depicts our expiring excess property insurance program, and both Options #1 and #2 considered for this years renewal.



Annual Premium

Rate per $100 of value

% change rate

per $100

$ change in Annual Premium

Expiring Program





Option #1





Option #2






The Risk Management Division, after considering both of the options provided, recommends the Board approve Option #1 as providing best value for our excess property insurance program.

 The Risk Management Division is recommending approval of purchasing excess property insurance, as shown in Option #1 of the FFIB proposal based on the not to exceed premium of $3,431,349, plus Federal/State Mandated Fees of $127,004, for a Total Premium of $3, 558,353; and to approve the County Attorney or his designee execute all required documents relating to this purchase.

County Attorney Review
Not Reviewed (No apparent legal issues)

Explanation of Other

Reviewing Attorney

Instructions to Board Records

Please return an executed copy of this Agenda Memorandum certifying its approval by the Board of County Commissioners to Raymond Carter – County Attorney’s Office (raymond.carter@mymanatee.org)

Cost and Funds Source Account Number and Name
5050001500-545000 Self Insurance Fund General Liability

Amount and Frequency of Recurring Costs
$3,558,353 Onetime payment

Attachment:  MCBOCC Ex Prop Proposal 13-14- NTE Revised 05.07.13.pdf
Attachment:  MCBOCC 13-14 Statement of Values - as of 04.23.2013.pdf
Attachment:  MCBOCC Ex Prop Proposal 13-14 Revised 05.20.13.pdf