Hillsborough County Public Schools Human Resources
Action Item

DATE: Tuesday, April 20, 2010
TO: School Board Members
FROM: MaryEllen Elia, Superintendent

SUBJECT / RECOMMENDATIONS

Approve the Purchase of Quoted Excess Property Insurance Program.

EXECUTIVE SUMMARY

Hillsborough County Public Schools purchases insurance coverage for its excess property for loss due to perils such as fire, flood, windstorm, etc. The coverage renews June 1, 2010. Coverage limits will be set at $200,000,000; $50,000,000 more than last year. An excess property insurance history is captured in (Attachment A). Our deductible for named windstorm-flood remains at 5% with a minimum deductible of $250,000. The deductible for all other perils remains at $100,000. Our insured values have increased from June 1, 2009, by $72,472,003 to $3,236,846,762. A list of insurance carriers contacted is included as (Attachment B). The District has opted to purchase an 11-month program to return the effective date to May 1, outside of wind season. The 11-month excess property insurance premium will be $5,718,630 which is a 4.78% decrease from the total expiring annualized program for the 2010 annual renewal (Attachment C). This premium is inclusive of insurance carrier required certified property appraisal/risk control on the District’s top 50 valued locations. First Florida Insurance Brokers, the District’s Insurance Broker, has recommended coverage in the amount of $200,000,000 with the Probable Maximum Loss for a 250 year storm of $155,005,831. The Florida Office of Insurance Regulation will be petitioned for validation that this amount meets the requirements for reasonable insurance coverage of the Stafford Act. The June 1, 2010, 11-month excess property quote is for $5,718,630, plus taxes and assessments (Attachment D), which is a decrease in premium of $287,324 from the annualized program effective June 1, 2009.

ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)

* Align financial resources to support the district’s strategic goals, * Demonstrate best financial practices, * Demonstrate "best practices" in all aspects of safety including students, employees, visitors, facilities, transportation, and health

FINANCIAL IMPACT (Budgeted: Yes)

The 11-month excess property insurance premium of $5,718,630, in the 2010-2011 General Fund budget reflects a 4.78% decrease from the 2009-2010 budget. The 11-month excess property insurance is $5,718,630, plus taxes and assessments.

EVALUATION

Yearly renewal

SUBMITTED BY:

Glen A. Lathers
Manager of Safety and Risk Management
(813) 872-5263
Daniel J. Valdez
Deputy Superintendent
(813) 272-4166
A 3.04R
Hillsborough County Public Schools (Florida) * Mtg.#20100420_398 * Section A Item# 3.04R