HomeMy WebLinkAboutResolution - 2017-R0308 - Property Insurance Coverage - 09_07_2017Resolution No. 2017-RO308
Item No. 2.6
September 7, 2017
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Manager of the City of Lubbock is hereby authorized and directed
to purchase for and on behalf of the City of Lubbock, property insurance coverage with
the insurers listed in the attachment and pursuant to the terms and conditions stated
therein, for a premium amount not to exceed a rate of .1010 per $100.00, said attachment
is incorporated hereto as if fully set forth herein; and
THAT the City Manager may execute any routine documents and forms
associated with said insurance coverage.
Passed by the City Council this September 7, 2017
ATTEST:
DANIEL M. POPE, MAYOR
- . D a"P'�
Reb cca Garza, City Secret
CONTENT:
Leisa Hutcheson, Director of Human Resources
and Risk Management
APPROVED AS TO FORM:
Je art e 1, Chief Litigation Attorney
RES.Risk Mgmt-Properly Insurance Coverage
August 31, 2017
Resolution No. 2017-RO308
CITY OF LUBBOCK
TERMS & CONDITIONS
INSURED: City of Lubbock and/or its affiliated and subsidiary companies and/or corporations as now
exist or may hereafter be constituted or acquired including their interests as may appear in
partnerships or joint ventures which the Insured is legally obligated to insure.
ADDRESS: 1625 131h St.
Lubbock, TX 79401-3830
PERIOD: From: 10/01/2017 To: 10/01/2018
INSURERS: Company / AM Best Ratings
- Aspen Specialty Insurance Company / A XV
- Princeton Excess & Surplus Lines Insurance Company / A+ XV
- Hallmark Specialty Insurance Company / A- VIII
- Indian Harbor Insurance Company / A XV
- Liberty Surplus Insurance Company / A XV
- First Specialty Insurance Corporation / A+ XV
- Arch Specialty Insurance Company / A+ XV
- Evanston Insurance Company / A XV
- Scottsdale Insurance Company / A+ XV
- Travelers Excess & Surplus Lines Company / A++ XV
"Carriers and participation subject to change on a bind order basis.
FORM: Manuscript Form to be agreed upon, subject to mandatory company forms.
COVERAGE: All Risks of direct physical loss or damage including Flood and Earth Movement, excluding
Equipment Breakdown and Terrorism subject to the policy exclusions and further described in
the approved policy form.
INTEREST: Real & Personal Property and as further defined in the policy form.
LIMITS: $500,000,000 per Occurrence. Capacity to be layered.
Ground up
SUBLIMITS: $50,000,000
Per Occurrence and Annual Aggregate as respects Flood except;
$ 5,000,000
Per Occurrence and Annual Aggregate as respects Flood occurring within
Special Flood Hazard Areas (SFHA), areas of 100-Year Flooding, as defined
by the Federal Emergency Management Agency, including backup of sewers
and drains
$50,000,000
Per Occurrence and Annual Aggregate as respects Earthquake (Excludes
California, Alaska, Hawaii, Puerto Rico, New Madrid Earthquake Zone
Counties, and Pacific Northwest Earthquake Zone Counties)
$ 5,000,000
Accounts Receivable
$ 100,000
Arson or Theft Reward
$10,000,000
Automobile Physical Damage — owned or leased vehicles located at or within
1000 feet of the covered location
$ 2,500,000
Automobile Physical Damage — covered vehicles while over the road
$ 5,000,000
Brands and Labels
$ 2,500,000
Building Materials at off premises storage for property under construction
$ 750,000
Contractors Equipment — per item subject to max per occurrence sublimit of
$10,000,000
$ 2,500,000
$ 250,000
Included
$ 10,000,000
$ 10,000,000
5,000,000
5,000,000
5,000,000
1,000,000
500,000
250,000
1,000,000
1,000,000
100,000
5,000,000
50,000,000
500,000
Included
1,000,000
1,000,000
250,000
5,000,000
100,000
500,000
5,000,000
2,500,000
1,000,000
1,000,000
$ 5,000,000
Debris Removal or 25% of direct physical damage to covered property,
whichever is less
Deferred Payments
Demolition and Increased Cost of Construction: Demolition Coverage A (For
the loss in value of the undamaged portion of the building as a consequence
of enforcement of an ordinance or law that requires demolition of undamaged
parts of the same building)
Demolition and Increased Cost of Construction: Demolition Coverage B (For
the cost to demolish and clear the sire of undamaged parts of the same
building, as a consequence of enforcement of an ordinance or law that
requires demolition of such undamaged property)
Demolition and Increased Cost of Construction: Demolition Coverage C (For
the increased cost of repair or reconstruction of the damaged and undamaged
property on the same or another site, limited to the cost that would have been
incurred in order to comply with the minimum requirements of such law or
ordinance regulating the repair of reconstruction of the damaged property of
the same site. However, this Company shall not be liable for any increased
cost of construction loss unless the damaged property is actually rebuilt or
replaced)
Errors and Omissions
Expediting Expenses
Fairs and Exhibitions
Fine Arts ($100,000 per item limitation)
Fire Brigade Charges & Extinguishing Expenses
Fungus, Mold or Spore
Installation Coverage
Land & Water Clean -Up
Locks & Keys
Miscellaneous Unnamed locations
Newly Acquired Property
Outdoor Property
Pairs or Sets
Personal Property Not at a Covered Location
Preservation of Property
Professional Fees
Property in the Course of Construction.
Property Removed from a Covered Location
Salespersons Samples
Service Interruption
Spoilage
Transit
Upgrade to Green Construction. 25% of amount payable for direct physical
loss or damage, subject to maximum of $1,000,000. This includes any Time
Element loss attributed to Upgrade to Green.
Valuable Papers and Records
Sublimits Applicable to Additional Time Element Coverages (part of and not in addition
to the Policy Limit)
$ 1,000,000
Attraction Property (30 days)
$ 100,000
Contractual Penalties
$ 100,000
Crisis Management (30 days)
$ 25,000,000
Extra Expense
$ 1,000,000
Ingress & Egress (30 days)
$ 1,000,000
Interruption by Civil or Military Authority (30 days)
$ 100,000
Logistics Extra Cost
$ 1,000,000
Rental Value
$ 100,000
Royalties
$ 1,000,000
Service Interruption (Qualifying Period: 24 hrs)
$ 1,000,000
Soft Costs
DEDUCTIBLES: $250,000 per occurrence except as follows:
With respect to Flood:
$250,000 per occurrence, except as follows:
$500,000 per Building, plus $500,000 Contents per Building, plus $100,000 Time Element per
Occurrence for locations that are wholly or partially within High Hazard Flood Zones.
With respect to Earth Movement:
$250,000 per occurrence, except as follows:
No Coverage for locations in California, Alaska, Hawaii, Puerto Rico, New Madrid Earthquake
Zone Counties, and Pacific Northwest Earthquake Zone Counties.
With respect to Windstorm or Hail:
$500,000 per occurrence
With respect to Airport Buildings:
Bldg ID #154 — LIA Hanger Building #310 (Chaparral)— 5417 N. Walnut: $50,000 per
occurrence
Bldg ID #204 — LIA Hanger #32 (G&G Avionics)— 5902 N. Cedar: $50,000 per occurrence
Bldg ID #292 — LIA Warehouse Building #710 (Nortec) — 2828 E. Dubuque: $50,000 per
occurrence
Bldg ID #294 — LIA Warehouse Building #714 (Marco)— 5612 N. David Avenue: $50,000 per
occurrence
Bldg ID #295 — LIA Warehouse Building #716 (Marco Steel) - 5618 N. David Ave.: $50,000
per occurrence
With respect to Contractor's Equipment:
$25,000 per occurrence (applies to equipment less than $250,000 in value)
$50,000 per occurrence (applies to equipment valued at $250,000 or greater)
With respects to Automobile Physical Damage — Covered Vehicles Over the Road
$250,000 per occurrence
With respect to Time Element:
24 Hours
If two or more deductible amounts provided in this policy apply to a single occurrence, the total
to be deducted shall not exceed the largest deductible applicable unless otherwise stated in
the policy.
However, if:
1) The Time Element deductible and another deductible apply to a single Occurrence,
then the Company shall apply both deductibles to the Occurrence; and
2) Covered Loss or Damage by Flood arises out of a Named Storm, then the Company
shall apply the Flood deductible or the Named Storm deductible, whichever is greater.
TERRITORY: Coverage under this policy applies to Occurrences within the United States, its territories and
possessions, Puerto Rico, and Canada, including their respective coastal waters.
CONDITIONS: - Nil Coinsurance
- Valuation:
- Real and Personal Property Replacement Cost;
- Actual Loss Sustained on Time Element;
- Contractor's Equipment, Vehicles and Trailers — 5 years or newer to be valued on
RCV basis, older than 5 years on an ACV basis.
- 35% Minimum Earned Premium
- Joint Loss agreement with Boiler carrier
- 90 Days Notice of Cancellation except for non-payment of premium 10 Days
- Citizens Tower (Bldg ID# 707, 725, & 706) to be covered on an ACV basis and excluding
Ordinance or Law, while vacant or under construction
- Pre -Existing Damage Exclusion
- Assigned adjuster to be agreed. Requesting Trey Johnson, EGA York Claim Services 5501
LBJ freeway, Suite 300, Dallas, TX 7524
PREMIUM: $919,975 Including Taxes & Fees
INFORMATION: City of Lubbock
Based on TIV of $911,392,989
$534,964,843 — Buildings
$254,781,696 — Contents
$93,514,652 — City and Citibus Vehicles
$28,131,798 — City Contractor's Equipment and Trailers
Vehicles, Contractors Equipment & Trailers are provided at Purchase Price.
Building ID #3 Civic Center is currently undergoing a $20.5m renovation, the installation is
covered by the General Contractor.
Building ID# 707, 725 & 706 Citizens Tower is vacant. The property is fenced, doors are
chained, utilities are on and police department patrols regularly.
Loss History: There has only been one property loss in the past 6 years, which was a
Wind/Hail loss on 6/5/13 in the amount of $649,416 excess of $250,000 per occurrence.
We believe only $118,849 of this loss was to the City schedule and the remaining incurred
was to Electric Utility (LPL) locations (LPL Locations not included on this placement).
Agency must hold a valid Texas Insurance License
IMPORTANT NOTICE: THE NONADMITTED & REINSURANCE REFORM ACT (NRRA) WENT INTO EFFECT ON
JULY 21, 2011. ACCORDINGLY, SURPLUS LINES TAX RATES AND REGULATIONS ARE SUBJECT TO CHANGE
WHICH COULD RESULT IN AN INCREASE OR DECREASE OF THE TOTAL SURPLUS TAXES AND FEES OWED
ON THIS PLACEMENT. IF A CHANGE IS REQUIRED, WE WILL PROMPTLY NOTIFY YOU. ANY ADDITIONAL
TAXES OWED MUST BE PROMPTLY REMITTED TO AMWINS.
Scott Wolf
Executive Vice President I AmWINS Brokerage of Texas, Inc.
T 214.561.6854 1 M 469.222.1877 1 F 214.528.9101 1 scott.wolf@amwins.com
5910 North Central Expressway I Suite 500 1 Dallas, TX 75206 1 amwins.com
In California: AmWINS Brokerage of Texas Insurance Services I License No.: OF41749
An AmWINS Group Company
SURPLUS LINES DISCLOSURE
Texas
This insurance contract is with an insurer not licensed to transact insurance in this state and is issued and
delivered as surplus line coverage under the Texas insurance statutes. The Texas Department of
Insurance does not audit the finances or review the solvency of the surplus lines insurer providing this
coverage, and the insurer is not a member of the property and casualty insurance guaranty association
created under Chapter 462 Insurance Code. Chapter 225, Insurance Code, requires payment of a 4.85
percent tax on gross premium.
Surplus Lines Licensee Name: AmWINS Brokerage of Texas. Inc.
IMPORTANT NOTICE
To obtain information or make a complaint:
You may contact the Texas Department of Insurance to obtain information on companies, coverages,
rights or complaints at
1-800-252-3439
You may write the Texas Department of Insurance:
Post Office Box 149104
Austin, Texas 78714-9104
Fax: 512-475-1771
Web: http://www.tdi.texas.gov
E-mail: ConsumerProtection@tdi.state.tx.us
PREMIUM OR CLAIM DISPUTES:
Should you have a dispute concerning your premium or about a claim you should contact the agent first.
If the dispute is not resolved, you may contact the Texas Department of Insurance.
ATTACH THIS NOTICE TO YOUR POLICY:
This notice is for information only and does not become a part or condition of the attached document.
AVISO IMPORTANTE
Para obtcner informacion o para someter una queja:
Puede comunicarse con el Departamento de Seguros de Texas para obtener informacion acerca de
companias, coberturas, derechos o quejas al:
1-800-252-3439
Puede escribir al Departamento de Seguros de Texas:
Post Office Box 149104
Austin, Texas 78714-9104
Fax: 512-475-1771
Web: http://www.tdi.texas.gov
E-mail: ConsumerProtection@tdi.state.tx.us
DISPUTAS SOME PRIMAS O RECLAMOS:
Si tiene una disputa concerniente a su prima o a un reclamo, debe comunicarse con el agente primero. Si
no se resuelve la disputa, puede entonces comunicarse con el departamento (TDI).
UNA ESTA AVISO A SU POLIZA:
Este aviso es solo para proposito de informacion y no se convierte en parte o condicion del documento
adjunto.
City of Lubbock - eff 10/1/17
% Channe
--TIV-- 2016/17
1,294,565,207
TIV - 201 GI17 - DBB
578 &15,328
-77W-11AIV.=20178-CITY 77,'i,`.
r :-.:'911` 9a9.
��I-er
CITY 201711 871V BREAKDOWN
LP&L 2017118 TIV BREAKDOWN
534,964,843 Buildings
149,21 ,788 $uildinc3s
254,781,696 Contents
183.503,058 Contents
93.514,652 City & Globus Vehicles
6.500,000 Buskreaa Income
28,131,798 CE & Trallers
2,800,180 Fquipment
12,610,988 Vehcles
1.121,970 Trsik"
BOUND - 7
TOT L INCLO TOTAL RATE INCLO RATE 15U EY WIH DED. TOTAL 8 K
EXPIRING COMPANY TAXES & FEES TAXES 6 PEES CHO 'TOTAL LOSS WIH DED + PRL°MIUM CHO
City & LPL Combined
$500M Limit American Home 1,187,528 0.0917%,
Wind DBB - $5m per occ AA Axis 420,059 a0726%
Wind DBB - $4.5m XS $5m AA Arch 119,438 0.0206%
TOTAL: 1,727,024 0.1334°% 22,471,506 24,199,621
Deductibles: $250k AOP, 3% All Wind per unit of ins., $250k min and $10M max, 5°% SFHA Flood, $25k EPD, $50k Airport Bldg, $25k CE (< S250k values), $50k (a$250 values)
Wind DBB: 1 °% per unit of ins, subject to $500k min and $11A max
Section A: W ind/Hall, TIV $370.191,462. 71 Locations. Real Property ONLY. Oualifer. Only locations w/ value of $500k or greater w/ roof age 2D01 or newer
Section B: Wind ONLY excld Hail, TIV $208,653,866, 33 Locations, Personal Property ONLY.
Insured's W/H Ded. Total Loss Is calculated as follows: $1M Max + AIG TIV - DBB TIV X 3°% dad - $22,471.596
TOTAL INCLD
INCLD
% RATE INSURED'S W/H DED. TOTAL COST OF RISK % COST OF RISK
OPTION 1
COMPANY TAXES & FEES
TAXES & FEES
CHG TOTAL LOSS W/H DED + PREMIUM CHO
City - Layered Program
500,000,000
Layered Program 919.975
0.1009%
500,000
B&M
XLC 24,003
0,0026%
N/A
TOTAL CITY: 943,978
0.1036%
500,000 1,40,0711
Deductibles: $250k AOP, $500k Wind/Hail, SFHA Flood excess of max available NFiP, $50k Airport Buildings,
$25k CE (< $250k values), $50k (s$260 values), $25k B&M
Lubbock Power & Light
351,255,489
AEGIS, etc 466,183
0.1310%
100,000 566,183
Deductibles: $100k AOP incld W/H,
$250k steam & combustion turbines, $350k LM 6000, $50k transit, 2.5% NS,
min $100k, $25k T&S, 30 days BI, 24 hr CBI
TOTAL CITY & LPL: 1,410,161
0.1113%
-16,58% 600,000 2,010,161 •02%
OPTtOti 2='20171ie�s;.':: ;V"
TCITALINCLD TOTAL ME KXTE INSURED S MR150. TOTAC COST OF RISK % C051 OP KRIK
OPTION 2 COMPANY TAXES & FEES TAXES & FEES %CHG TOTAL LOSS WIH DEO + PREMIUM CHO
City - Hertford & DBB
$500M Hartford 489,500 0.0537%
DBB Lloyds of London 315,525 0.0624%
TOTAL CITY: 805,025 0.0883% 11,249,113 12,054.138
Hartford TIV: 901,392,9B9 This excludes Citizens Tower
Deductibles: $250k AOP, 2°% W/H per location w/ $250k min., SFHA Flood excess of max available NFIP, $50k CE, $25k B&M
Wind DBB: 1 % per location with $250k minimum
QUALIFERS: Only for locations with roots full replacement 2002 or newer & $500k bldg values or greater = TIV of 454,581,785 vs total real & PP of $789,746,539. Not buying down
$335,164,754 of values which leaves the insured exposure of $6,703.295
Insured's W/H Ded. Total Loss Is calculated as follows: DBB TIV x 1% + (Real & PP TIV - DBB TIV) x 2% dad = $11,249,113
Lubbock Power & Light
355,759,962 AEGIS, etc 466,183 0.1310% 100,000 566,183
Deductibles: $100k AOP incld W/H, $250k steam & combustion turbines, $350k LM 6000, $50k transit, 2,5% NS, min $100k, $25k T&S, 30 days BI, 24 hr CBI
TOTAL CITY & LPL: 1,271,208 0.1003% -24.80 % 11,349,113 12,620,321 48%
Difference between Option 1 & Option 2: f 138,953.35-10,749,113-10,610,160 -44•%
Years Payback for the AP for the flat deductible: lie