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 coverages include, but are not limited to:
• Special Form Property Policy, formerly known as All Risk, covers direct physical loss up to $500,000,000. The estimated total value of all City structures, contents, and equipment is $949,901,403. A total loss is considered unlikely; therefore, $500,000,000 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 deductible equals 3% of the total insured value of the affected property 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 Liberty Surplus Insurance Company, Lloyd’s of London, Hallmark Specialty Insurance Company, Zurich Insurance Group, Everest Re Group, Ltd., Arch Specialty Insurance Company, Markel Insurance Company, James River Insurance Company, Scottsdale Insurance Company, Mitsui Sumitomo Insurance Company, RSUI Group, Inc., OneBeacon Insurance Group, Arrowhead General Insurance Agency, Inc., and Great American Insurance Group. The current premium is $1,757,577.50, reflecting a rate of 0.1981 per $100 of valuation.
The City’s broker is working to secure quotes for this coverage. 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 October 1, 2021, 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. |
