That the City Council authorize the City Manager to renew the City’s property insurance policy for all City owned properties with Travelers Property Casualty Company of America.  If approved, the term of the policy will be from March 1, 2025, through March 1, 2026, with a $5,000 deductible at an annual premium cost of $158,747.

The City’s Property Insurance policy expiring on March 1, 2025, provides coverage for City buildings and their contents against theft, damage, and fire. 

In an effort to secure the lowest cost renewal option, staff instructed the City’s insurance broker, Schrimmer Insurance, to solicit bids for insurance coverage. Schrimmer Insurance approached five insurance carriers for pricing proposals; however, two of the carriers declined to quote due to the age of the buildings, and one carrier did not offer high enough coverage limits.

Schrimmer Insurance was able to secure two pricing proposals, one of which is from the current carrier. A summary of the current coverage and comparable quotes for property insurance policies are listed below:

Travelers’ proposal (Quote 1) for all properties represents a premium increase of $21,159, or approximately 15% more, than the City’s current annual premium of $137,588.

Staff rejected (Quote 2) Westchester due to significantly higher deductibles than the Travelers’ proposal.

Staff recommends renewing the City’s property insurance policy with Travelers Property Casualty Company of America for all City owned properties. This will provide coverage for the City’s total insurable values of $76,458,573 (up from $71,835,697 last year due to an increase in construction/replacement cost), and maintains the current $5,000 deductible at an annual premium of $158,747.
 
The City’s property insurance premium history for the last ten years is listed below: