Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - May 22, 2018
REVISED May 22, 2018 - Regular Meeting
Agenda Item #14

Annual Purchase of Excess Property Insurance

Briefing Provided Upon Request

Contact and/or Presenter Information

Mitchell O. Palmer, County Attorney, ext. 3750

Linda R. Klasing, Risk Manager, ext. 3750

Action Requested

Motion to approve the purchase of excess property and property terrorism insurance in an amount not to exceed $2,741,598 (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, to execute all required documents.

Enabling/Regulating Authority

Ordinance 16-26

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.”

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 250-year storm was determined to be $46,230,722 based on a Statement of Value (SOV), which shows the County’s insurable values of $1,162,743,235. The SOV sets the basis for determining the “rate per $100 of value” and ultimately our premium for excess property insurance.

The current excess property insurance program expires on June 1, 2018, and contains the following provisions: (1) The total loss limit per expiring is $250,000,000, which includes a $90,000,000 Named Storm Limit, (2) the current Named Storm deductible is 3% per building and contents, with a minimum named storm deductible of $250,000, with a $20,000,000 deductible maximum; and (3) 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 proposed excess property insurance program for this renewal contains the following provisions:  (1) The total loss limit remains at $250,000,000, which includes a $90,000,000 named storm limit, and $75,000,000 in flood coverage, which is the same as per the expiring policy, (2) the named storm deductible remains the same as per the expiring policy at 3% per building, with a minimum named storm deductible of $250,000 and a  maximum named storm deductible of $20,000,000; and (3) the deductible per occurrence for all other perils, excluding named storms, remains the same as per the expiring policy at $100,000.

The County also purchases a property terrorism policy 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

For the 2018-2019 property terrorism renewal, the County is also including coverage for Active Assailant with a $5,000,000 limit.  The expiring 2017-2018 premium for the property terrorism insurance was $34,000.  The renewal policy for the 2018-2019 policy period, including Active Assailant coverage, is $37,892; an increase of $3,892.

The premium difference for excess property renewal is 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 and terrorism insurance program.

County Attorney Review
Not Reviewed (No apparent legal issues)

Explanation of Other

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 Mitchell O. Palmer, County Attorney, at mitchell.palmer@mymanatee.org and to Linda R. Klasing, Risk Manager, at linda.klasing@mymanatee.org.

Cost and Funds Source Account Number and Name
$2,741,598 Fund 5050001500 Risk Management General Liability Fund

Amount and Frequency of Recurring Costs
$2,741,598, One Time Payment

Attachment:  MCBOCC FY19 Excess Property Proposal - 5.4.18.pdf