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Consent
Item No. 3.
| MEETING DATE: 02/17/2026 |
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| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Gabriella Yap, Assistant City Manager |
| SUBJECT: | APPROVE THE CITY’S PROPERTY INSURANCE POLICY RENEWAL FOR A ONE-YEAR TERM
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RECOMMENDATION:
That the City Council authorize the City Manager to renew the City’s property insurance policy with Travelers Property Casualty Company of America for all City-owned properties. If approved, the term of the policy will be from March 1, 2026, through March 1, 2027, with a $5,000 deductible at an annual premium cost of $162,564.
DISCUSSION:
The City’s Property Insurance policy expiring on March 1, 2026, 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 City's current carrier. A summary of the current coverage and comparable quotes for property insurance policies are listed below:
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 City's current carrier. A summary of the current coverage and comparable quotes for property insurance policies are listed below:
| Company | Deductible | Premium | ||
| Current Carrier | Travelers Property Casualty Company of America | $5,000 | $158,747 | |
| Quote 1 | Travelers Property Casualty Company of America (RECOMMENDED) | $5,000 | $162,564 | |
| Quote 2 | Westchester | $25,000 | $150,000 | |
Travelers’ proposal (Quote 1) is recommended for approval for all properties and represents a premium increase of $3,817 from the City’s current annual premium of $158,747.
Westchester proposal (Quote 2) is recommended for rejection 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 properties. This will provide coverage for the City’s total insurable values of $75,408,678, and maintains the current $5,000 deductible at an annual premium of $162,564.
Westchester proposal (Quote 2) is recommended for rejection 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 properties. This will provide coverage for the City’s total insurable values of $75,408,678, and maintains the current $5,000 deductible at an annual premium of $162,564.
The City’s property insurance premium history for the last 10 years is listed below:
| 2016-2017 | $130,084 |
| 2017-2018 | $84,548 |
| 2018-2019 | $85,448 |
| 2019-2020 | $84,013 |
| 2020-2021 | $87,083 |
| 2021-2022 | $96,170 |
| 2022-2023 | $108,110 |
| 2023-2024 | $124,081 |
| 2024-2025 | $137,588 |
| 2025-2026 | $158,747 |
FISCAL IMPACT/SOURCE OF FUNDING:
The premium for property insurance coverage has been included in the adopted Fiscal Year 2025-2026 budget. Staff recommends City Council approve the pricing proposed by Travelers Property Casualty Company of America with a $5,000 deductible at an annual premium cost of $162,564 for the City’s property insurance policy coverage. This represents an increase of 2.4% or $3,817 from the current annual premium.
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
This recommended action achieves the following element of the City of La Habra's Goals and Objectives:
Goal 2 - Management of Public Revenues and Fiscal Assets/Objective A
Goal 2 - Management of Public Revenues and Fiscal Assets/Objective A