The City purchases property insurance for its structures, contents, and equipment, excluding Lubbock Power and Light because they are covered under a separate policy. The coverage includes, but is not limited to:
- Special Form Property Policy, formerly known as All Risk, covers direct physical loss up to $400,000,000. The estimated total value of all City structures, contents, and equipment is $989,932,789. A total loss is considered unlikely; therefore, $400,000,000 in coverage is recommended.
- Flood and earthquake coverage is limited to $50,000,000 for moderate hazard zones and $5,000,000 for high hazard zones.
- All property and contents, excluding mobile equipment and vehicles, are covered at replacement cost.
- Mobile equipment and vehicles parked at a covered location are covered at actual cash value.
- Windstorm and hail coverage has a deductible of $500,000 per occurrence.
- Mobile equipment and vehicles valued at $100,000 or greater will be covered at actual cash value for physical damage while in use, subject to a $2,500,000 limit annually, and a per occurrence deductible of $250,000.
The City currently utilizes a layered coverage program, including Lloyd’s of London, Hallmark Specialty Ins Company, Kemah, Zurich Ins Group, Fidelis Ins Company, Arch Specialty Ins Company, Rivington, Markel Ins Company, StarStone/Core Specialty Ins Company, James River Ins Company, Harleysville Ins Company, Mitsui Sumitomo Ins Company, RSUI Group, Intact Ins Group, Liberty Ins Company and Hiscox Ins Group, for a premium of $4,182,472, a rate of $0.2817 per $100 of valuation for an 18-month policy period. The proposed coverage is also a layered program from Lloyd’s – HCC Insurance; Lloyds-Fidelis Insurance; StarStone Specialty Insurance; Sutton Specialty Insurance; Lexington Insurance; Fidelis; Arch Specialty Insurance; Palms Specialty Insurance; Evanston Insurance Company; Kinsale Insurance Company; Axis Surplus Insurance Company; James River Insurance; Texas Insurance Company; Trisura Specialty; Harleysville Insurance Company of New York; Mitsui Sumitomo; Landmark American Insurance and AXA XL Insurance Companies consisting, for a premium of $2,985,295.70, at a rate of $0.3016 per $100 of valuation for an annual policy period. This is a 7.06% increase from the current year. Approving this insurance coverage on a rate basis allows the City Manager the ability to add and remove properties, as necessary, to maintain an accurate property valuation. Carriers bind insurance coverage on April 1, 2024, after notification of City Council approval. Insurance policies are issued once the insurance company receives from the City the contribution for the insurance coverage. Current coverage documents are available in Risk Management. |