The City purchases property insurance on behalf of Lubbock Power and Light, the City’s municipal electric utility, for its structures, contents, and equipment. The coverages include, but are not limited to:

• Special Form Property Policy, formerly known as All Risk, covers direct physical loss up to $534,441,091 which is the estimated total value of all electric utility structures, contents, and equipment;
•Flood and earthquake coverage to include high hazard zones;
•All property and contents;
•Mobile equipment and vehicles.

The City, on behalf of LP&L, utilized a layered coverage program including AIG, Argenta, Helvetia, HDI, SCOR, QBE, CAN Hardy, Aspen, Chubb, Travelers, Lancashire, Munich, Amlin, Liberty (XS), Faraday, Kiln, Ark, Arch, Convex, Munich (XS), Alcor, Chubb Bermuda and Talbot Syndicate 1183. Deductibles ranged from $250,000 to $1,000,000 per occurrence at a rate of 0.6303 per $100 valuation and a premium of $3,486,958.  This coverage expired September 30, 2023.

Proposed current year premium is a combination of property and terrorism coverage and is for a term of 18 months. The City’s broker was able to secure coverage with AEGIS at a rate of 0.2665 per $100 valuation at a premium of $1,424,200 by bundling the two coverages. 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.

Property deductibles range from $250,000 to 2.5% of the total insured value of the loss. Terrorism coverage consists of $19 million in coverage through Talbot and $1 million in excess coverage with Hiscox, each with a $10,000 per occurrence deductible. 

Carriers bind insurance coverage October 1, 2023, after notification of City Council approval. Insurance policies are issued after premiums are received from the City. The policy for the insurance coverage is approved by the Texas Department of Insurance as to content. Current insurance policies are available for review in Risk Management.