HomeMy WebLinkAboutResolution - 2020-R0294 - City of Lubbock Property Insurance PolicyResolution No. 2020-RO294
Item No. 7.12
September 8, 2020
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. 1981 per $100.00; and
THAT the City Manager may execute any routine documents and forms
associated with said insurance coverage.
Passed by the City Council this September 8, 2020
DANIEL M. POPE, MAYOR
AT ES' :
Re ca Garza, City Sec etary
APPROVED AS TO CONTENT:
/_ L
D. u Kosfelich, Chief Financial Officer
APPROVED AS TO FORM:
Jef Harts�ty City Attorney
RES.Risk Mgmt-Property Insurance Coverage
August 25, 2020
Commercial Property
Insurance Company: Lead Market —TBD
Policy Term: 10/1/2020 to 10/1/2021
Coverage: Property insurance covers your interest against direct physical loss or
damage by covered perils to named property that you own or are
required to insure. Per Schedule on File
Annual Premium: $1,757,577.50
Coverage: All Risk
Policy Form: Agreed Expiring From subject to Mandatory Zurich amendments and
endorsements
Perils: Risks of direct physical loss or damage including Flood and including Earthquake
but excluding locations in California, Alaska, Hawaii or Puerto Rico and excluding
Boiler and Machinery Breakdown subject to the policy form and exclusions and
endorsements noted herein.
Coverages: Real Property, Personal Property, Extra Expense, and other sub -limits as noted
in the policy form.
Territory: United States of America, Puerto Rico and the United States Virgin Islands.
Locations: As per schedule of locations on file received by us on 5/15/2019
This quotation is based on the following values reported:
Coinsurance: Property: nil%
Time Element: nil%
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
Limit: $500,000,000
Total Insured Value: $887,260,582
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100% 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 Debris Removal or 25% of direct physical damage to covered property,
whichever is less
$ 250,000 Deferred Payments
Included 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)
$ 10,000,000 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)
$ 10,000,000 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)
$ 5,000,000
Errors and Omissions
$ 5,000,000
Expediting Expenses
$ 5,000,000
Fairs and Exhibitions
$ 1,000,000
Fine Arts ($100,000 per item limitation)
USI
$ 500,000
Fire Brigade Charges & Extinguishing Expenses
$ 1,000,000
Installation Coverage
$ 1,000,000
Land & Water Clean -Up
$ 100,000
Locks & Keys
$ 5,000,000
Miscellaneous Unnamed locations
$ 50,000,000
Newly Acquired Property
$ 500,000
Outdoor Property
Included
Pairs or Sets
$ 1,000,000
Personal Property Not at a Covered Location
$ 1,000,000
Preservation of Property
$ 250,000
Professional Fees
$ 5,000,000
Property in the Course of Construction.
$ 100,000
Property Removed from a Covered Location
$ 500,000
Salespersons Samples
$ 5,000,000
Service Interruption
$ 2,500,000
Spoilage
$ 1,000,000
Transit
$ 1,000,000
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.
$ 5,000,000
Valuable Papers and Records
11� 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
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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:
3% 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.
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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
Conditions: Remove Liberalization
All Risk of Direct Physical Damage
Time Element — Must be due to " physical loss or damage of the type insured
against"
Livestock, Animals —Animal Mortality excluded
Standing timber— excluded
Growing Crops excluded
Spacecraft/Satellites and Associated launch vehicles and any property contained
therein excluded
Watercraft or Aircraft excluded
Land & Water excluded
Transmission and Distribution lines situated beyond 5,000 ft excluded
Civil/Military Authority must have prohibited access wording
Service Interruption - Must include exclusion for Satellites; it is satisfactory to
have an exclusion of Satellites at part of property not covered with lead in
wording in the Service interruption clause that states; "This extension of
coverage applies only when such interruption of service is caused by direct
physical loss or damage insured by this POLICY to any property of the type
insured by this POLICY of the supplier of such services if such property is situated
within the Policy Territory."
Hostile Acts/War and Weapons Civil War
Subject to satisfactory review and acceptance of all terms conditions and
language in the manuscript policy form.
Satisfactory inspections at key locations and compliance with essential
recommendations. This applies to business that we write or share on a primary
basis.
Minimum Earned Premium: 35% Minimum earned premium applies.
Applicable Law; Court Jurisdiction
The laws of the State of New York, without regard to any conflict of laws rules that would cause
the application of the laws of any other jurisdiction, shall govern the construction, effect, and
interpretation of this insurance agreement.
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The parties irrevocably submit to the exclusive jurisdiction of the Courts of the State of New
York, and to the extent permitted by law the parties expressly waive all rights to challenge or
otherwise limit such jurisdiction.
Terrorism Risk Insurance Act of 2002, as amended 2015 (TRIPRA) - Notice of Premium Amount;
Notice of Program Cap
This quotation offers coverage for Insurer's share of liability for loss caused by certified acts of
terrorism as defined in the Terrorism Risk Insurance Program Reauthorization Act of 2015
(TRIPRA).
Coverage provided for losses resulting from certified acts of terrorism may be partially
reimbursed by the United States government under a formula established by federal law.
However, your policy may contain other exclusions which might affect coverage, such as an
exclusion for nuclear events.
Under the formula, the United States government generally reimburses a specified percentage
of covered terrorism losses exceeding the statutorily established deductible paid by the
insurance company providing the coverage. The percentage of covered terrorism losses
exceeding the deductible paid by the insurance company providing the coverage for which such
insurance company will be reimbursed by the United States government is:
•85%for losses occurring in 2015;
•84%for losses occurring in 2016;
•83%for losses occurring in 2017;
•82%for losses occurring in 2018;
•81%for losses occurring in 2019;
•80% for losses occurring in 2020
The premium charged for the coverage quoted herein does not include any charge for that
portion of any terrorism loss to be paid by the United States government.
TRIPRA contains a USD100 billion cap limiting United States government reimbursement as well
as insurers' liability for losses resulting from certified acts of terrorism when the amount of such
losses exceeds USD100 billion in any one calendar year. If the aggregate insured losses for all
insurers exceed USD100 billion, insured losses up to that amount are subject to pro rata
allocation in accordance with procedures established by the Secretary of the Treasury.
That part of the total premium amount quoted herein by Insurer that is attributed to coverage
pursuant to TRIPRA is provided above in Premium section of this quotation.
In the event that the Insured declines to purchase TRIPRA coverage, the policy will contain a
Terrorism Exclusion.
Cancellation: 90 days except 10 days for nonpayment of premium
u
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SUBIECTIVITIES:
- Confirmation if accepting/rejecting TRIA
There are subjectivities that: 1) must be complied with or resolved before the contract becomes
binding, 2) apply both before or after inception, compliance with which is a condition of all or
part of the coverage; and 3) apply after the formation of the contract as conditions of continued
coverage.
SPECIAL CONDITIONS / OTHER COVERAGES:
NO FLAT CANCELLATIONS
ALL FEES ARE FULLY EARNED AT INCEPTION
Please note that this is a quote only, and the Insurer reserves the right to amend or withdraw
the quote if new, corrected or updated information creating a material difference from the
previously provided underwriting material is received. This quote summary, the fees quoted and
our advice, is confidential. If you need further information about the quote, our fee or the
Insurer that is proposing to provide your insurance, please contact us.
We will need a written request in order to bind coverage. If the Insurer binds the risk following
your written request, the terms of the policy currently in use by the Insurer will govern the
Insurer's quote.
TAXES & FEES:
IMPORTANT NOTE: The Home State of the Named Insured shall be determined in accordance
with the provisions of the Nonadmitted and Reinsurance Act of 2010, 15. U.S.0 §8201, etc.
("NRRA"), and the applicable law of the Home State governing cancellation or non -renewal of
insurance shall apply to this Policy.
Taxes are provisional based on the insureds acceptance of TX as their home state.
Surplus lines taxes quoted may be subject to change based up on updated risk information or
changes to tax rates or governmental fees.
State surcharges and/or fees charged by the Insurer may not be included herein and will be
billed at a later date.
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GENERAL TERMS
In all cases, policy and carrier wordings take precedence.
DEPOSIT PREMIUM
The deposit premium is the minimum portion of premium due to the carrier at the inception of
the policy. The premium for the policy term will be adjusted according to the provisions stated
in the policy.
MINIMUM PREMIUM
The minimum premium is the LEAST amount of premium retained by the carrier if the policy is in
effect for the full term.
MINIMUM EARNED PREMIUM
The minimum earned premium is the LEAST amount of premium that will be retained by the
carrier in the event of cancellation. The actual amount of earned premium retained will be the
GREATER of the actual premium developed based on the time the policy was in effect OR the
minimum earned premium as stated in the policy.
MINIMUM EARNED PREMIUM: 35%Minimum earned premium applies.
Endorsements,Key r
limited to, the following:
Building Vacancy Provision - Coverage may be restricted or excluded for any Building found to be
vacant for a minimum of 30 consecutive days or longer subject to all other policy terms and
conditions. If any of your covered buildings meet this description at any time during the policy
period, please contact us so we can assist you in maintaining appropriate coverage.
Protective Safeguard Endorsement - Failure to maintain the protective safeguards in good working
order or failure to notify the insurer of even a temporary impairment in protection suspends coverage
until the protection is restored.
Excluded coverage or other coverages sought may be available: please discuss with USI
Other exclusions and policy limitations may apply. Please refer to the actual policies for specific terms,
conditions, limitations, exclusions and sublimits that will govern in the event of a loss.
USI r