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HomeMy WebLinkAboutR2017-092 2017-05-22APPROVED AS TO FORM: RESOLUTION NO. R2017-92 A Resolution of the City Council of the City of Pearland, Texas, approving Windstorm Insurance through AmRisc Carriers and Lloyds of London in the amount of $531,877.00 for the period of May 26, 2017 to May 26, 2018 with a rate guarantee for the period May 2018-2019. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. Pursuant to Chapter 252 of the Local Government Code the City obtained Windstorm Insurance pricing to cover City facilities. Section 2. That, pursuant to Section 252.022 of the Texas Local Government Code, the purchase of Windstorm Insurance is necessary to protect and preserve the public safety of the City's residents. Section 3. That the City Council hereby awards a two-year guaranteed contract for Windstorm Insurance to AmRisc Carriers in the amount of $531,877.00. Section 4. The City Manager or his designee is hereby authorized to execute a contract for the purchase of Windstorm Insurance. PASSED, APPROVED and ADOPTED this the 22nd day of May, A.D., 2017. TOM REID MAYOR ATTEST: 001111881i, NGLy'FING,T SE ETARY ei-k,)(4 DARRIN M. COKER CITY ATTORNEY City of Pearland Rate Reference 1% Deductible $1.0073 1% Deductible $.6104 $10,000 Deductible $.3393 $10,000 Deductible $ 2928 $10,000 Deductible .2632 $10,000 Deductible .2632 $10,000 Deductible '. 14/15 Term 15/16 Term 16/17 Term eye ♦ERFORMANCE IS THE DIFFERENCE' Term: 2012-2013 TIV: $54,794,293 Deductible: 1% Total Cost: $551,960 Rate: $1.0073 I 2012 ♦ Hurricane Isaac 8.28.2012 "$2.4B in Losses Term: 2013-2014 TIV: $54,794,293 Deductible: 1% Total Cost: $579,559 Rate: $1.0577 1 f _ A 20131 City of Pearland Windstorm Insurance Historical Timeline 2012-2019 Term: 2014-2015 TIV: $112,900,574 Deductible: $10,000 Total Cost: $689,146 Rate: $.6104 A 2014 ♦ • ♦ Hurricane Ingrid 9.14.2013 —$26 in Losses Superstorm Sandy 10.29.2012 "$71.4B in Losses (3rd Costliest Hurricane) Hurricane Ingrid 9.14.2013 -$2B in Losses Term: 2015-2016 TIV: $175,455,505 Deductible: $10,000 Total Cost: $595,258 Rate: $.3393 2015 I I I I I I I I 1 I I I I V I I I I 2015 Global I 1 Losses: $27B 1 1 (slightly below I $29B average) I V W Term: 2016-2017 TIV: $215,544,991 Deductible: $10,000 Total Cost: $631,050 Rate: $.2928 2014 Global Losses: $15.3B (below $29B average) A Term: 2017-2019 TIV: $202,059,997 Deductible: $10,000 Annual Total Cost: $531,878 Annual Rate: $.2632 • ♦ • December 2015 Flooding & Tornadoes -$4B in Losses 2015-2016 El Nino: Strongest in recorded history 2017 • W 2016 Global Losses: -$516 (above $29B average) A 2016: Sixteen Billion Dollar Plus Weather Events in the United States 1 Spring 2016 Texas Hail Storms —$5.5B in Losses cx PERFORMANCE !s THE DIFFERENCE' Victor O. Schinnerer & Company, Inc. Windstorm & Hail Proposal PROPOSAL ACCEPTANCE FORM This form must be signed and returned to Victor 0. Schinnerer & Company, Inc. no later than May 22nd. Please Return To: Victor 0. Schinnerer & Company, Inc. 3100 Wilcrest Drive, Ste 200 Houston, TX 77042 Phone: (800) 284-4747 Email to Heena.A.Patel@Schinnerer.com PREMIUM PAYMENT (Payment will be sent to Victor 0. Schinnerer & Co., Inc.) Windstorm & Hail Coverages Accepted Selection Option # Total Limit Premium ❑ 1 $ 202,059,997 $ 563,697 ❑ 2 $ 202,059,997 $ 531,877 By accepting this proposal, you acknowledge and understand a minimum policy premiums may apply, you have met all eligibility requirements regarding flood coverage at certain locations and you have reviewed the windstorm location's schedule and are in agreement with the locations and limits used in this proposal. I, the undersigned, as an authorized representative of: City of Pearland do hereby accept on behalf of the above named political subdivision the portions of the proposal as indicated above. Signature of Authorized Official: Title: City Manager Date: TMLIRP OFFICE USE ONLY Contribution: Verified by: Contract #: ❑ New Member ❑ Member Re -awarding ❑ Member Adding Coverage May 1 1, 2017 AmR/SC Property Application and Statement of Values � stRJSc'i©- Unless notified otherwise, completion of this form replaces the application, statement of values, hard copy loss runs and formally executed loss letters This form contains the information submitted to date. The form must be completed, signed and returned for underwriter's review and acceptance within 30 days of Inception. Any inaccurate information identified on the returned form is automatically deemed noted and agreed by underwriters upon receipt, so please return as soon as possible. Named insured: City o' Poa'lanc Account ID: 475997 Mailing Address: Nature of business: Loc No. Address City State Zip Building Area (Sq. ft.) o� Automatic Sprinklers C m O } ISO Const. (1 to 6) cv Q o1 Z a 1 2 3 4 5 6 Per Schedule on Ne with AmRisc Totals: 505,225 341/. 424 3519 Liberty Drive Muni Pearland TX /581 If you Nye any chastens r.gerdwrg M typo of ranuruacr. m., i an Mums, wen your agent mini k fig nry In.s ap Valuation: RCV RCV ALS ALS ALS Coins: N/A N/A 1/3 Monthly 1/3 Monthly 1/3 Monthly Loc No. Building BPP al Rents EE Loc TIV 1 2 3 4 5 6 Per Schedule on fie with AmRisc Totals: $161,150,297 $39.659.700 51,250,000 $0 5202,059,997 These values otlen kern the basis of the policys bind d Mablty Meas. review carefuly List ALL losses caused by requested perils for any losses if not listed. Incomplete loss hislorry the prior 5 years that did or may exceed the specified threshold Please add 1 is considered materiel and may void coverage. Threshold: $5,000 DOL Description/COL incurred Status (O/C) DOL Description/COL Incurred Status (0/C) 05/26/13 Wind 524,132 C 0 Has any patty or coverage been deckled, canceled Or non -renewed Miring Ine Has any eppl cant been corrected d arson dine past 10 years? Prom 3 years (rot applicable in LI01 NO NO is t e epplcant a Shaper Corporation, pannereNp or any other typo of sole Any bankruptcies or lea nonillions against omit card in prior S years? pmw:ecr organ salon? NO NO Duos the applicant have any reason Thai they would not be aware of al bites kx Has net income bean negative for 2 W Ira past 3 yews? II so. please ailath the poor 5 years? NO financials or las returns for 3 ywn NO Fru apartments. a', mere ary HUD managed or Section a developments? NO If habilalianal. a there any aluminum di '' irAuion wiringNO Explain any Yes answers. If necessary, add additional pages, which are hereby made part of the application. Warranties: NONE List any Dtsuap.ndes Dltaepencbs reraived by underwriters prior toeless stall ba dawned noted and agreed by undenvrders premium may be cheeped as of IN del. ale inborelbn 4 receded by moaned*. However, andNonal Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application containing any false, incomplete, or misleading information is guilty of a felony of the third degree Severe cancellation penalties apply to CAT exposed property - Form is available upon request. Carriers' participation may change prior to binding or throughout the coverage period To the best knowledge of the applicant and the producer, the above Information Is true and complete. Initial each Section. Applicant Printed Name Title Producer Printed Name Applicant Signature Dale Initial Each Section Above Producer Signature Data AR APP 11 09 Confidential Page 1 of 1 DISCLOSURE NOTICE OF TERRORISM INSURANCE COVERAGE INSURED: City of Pearland LIMITS: As oar the attached Authorization or Indication Account ID: 475997 You are hereby notified that under the Terrorism Risk Insurance Act of 2002, as amended ("TRIA"), that you now have a right to purchase insurance coverage for losses arising out of acts of terrorism, as defined in Section 102(1) of the Act, as amended: The term "act of terrorism" means any act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State, and the Attorney General of the United States -to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property, or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United States mission; and to have been committed by an individual or individuals, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. Any coverage you purchase for 'acts of terrorism' shall expire at 12:00 midnight December 31, 2020, the date on which the TRIA Program is scheduled to terminate unless the TRIA Program is reauthorized or the expiry date of the policy whichever occurs first, and shall not cover any losses or events which arise after the earlier of these dates. YOU SHOULD KNOW THAT COVERAGE PROVIDED BY THIS POLICY FOR LOSSES CAUSED BY CERTIFIED ACTS OF TERRORISM IS PARTIALLY REIMBURSED BY THE UNITED STATES UNDER A FORMULA ESTABLISHED BY FEDERAL LAW. HOWEVER, YOUR POLICY MAY CONTAIN OTHER EXCLUSIONS WHICH MIGHT AFFECT YOUR COVERAGE, SUCH AS AN EXCLUSION FOR NUCLEAR EVENTS. UNDER THIS FORMULA, THE UNITED STATES PAYS 85% THROUGH 2015; 84% BEGINNING ON JANUARY 1, 2016; 83% BEGINNING ON JANUARY 1, 2017; 82% BEGINNING ON JANUARY 1, 2018; 81% BEGINNING ON JANUARY 1, 2019 AND 80% BEGINNING ON JANUARY 1, 2020; OF COVERED TERRORISM LOSSES EXCEEDING THE STATUTORILY ESTABLISHED DEDUCTIBLE PAID BY THE INSURER(S) PROVIDING THE COVERAGE. YOU SHOULD ALSO KNOW THAT THE TERRORISM RISK INSURANCE ACT, AS AMENDED, CONTAINS A $100 BILLION CAP THAT LIMITS U.S. GOVERNMENT REIMBURSEMENT AS WELL AS INSURERS' LIABILITY FOR LOSSES RESULTING FROM CERTIFIED ACTS OF TERRORISM WHEN THE AMOUNT OF SUCH LOSSES IN ANY ONE CALENDAR YEAR EXCEEDS $100 BILLION. IF THE AGGREGATE INSURED LOSSES FOR ALL INSURERS EXCEED $100 BILLION, YOUR COVERAGE MAY BE REDUCED. THE PREMIUM CHARGED FOR THIS COVERAGE IS PROVIDED BELOW AND DOES NOT INCLUDE ANY CHARGES FOR THE PORTION OF LOSS COVERED BY THE FEDERAL GOVERNMENT UNDER THE ACT. I— I hereby elect to purchase coverage for acts of terrorism for a prospective premium of $24753 r I hereby elect to have coverage for acts of terrorism excluded from my policy. I understand that I will have no coverage for losses arising from acts of terrorism. Policyholder/Applicant's Signature Clay Pearson Print Name Date This notice applies to the following carriers and their respective participation quoted herein: Certain Underwriters at Lloyds Indian Harbor Insurance Company QBE Specialty Insurance Co. General Security Indemnity Company of Arizona United Specialty Insurance Company Princeton Excess and Surplus Lines Insurance Co International Insurance Company of Hannover AmRisc, LLC Flood Notice AR FN 04 11 If the policy issued by AmRisc, LLC excludes Flood, the following shall apply: Flood Exclusion Acknowledgement I understand the policy issued by AmRisc, LLC does NOT provide coverage for loss or damage caused by or resulting from Flood, including any flooding and/or storm surge associated with windstorm events. I understand that Flood insurance can be purchased elsewhere from a private flood insurer or the National Flood Insurance Program. It is strongly recommended that Insureds in "Special Flood Hazard Areas" or areas subject to Flooding, including flooding and/or storm surge from windstorm events, obtain Flood coverage. I also understand that execution of this form does NOT relieve me of any obligation that I may have to my mortgagees or lenders to purchase Flood insurance. If the policy issued by AmRisc, LLC includes Flood, the following shall apply: Flood Coverage I understand the policy issued by AmRisc, LLC does provide coverage for loss or damage caused by or resulting from Flood, including any flooding and/or storm surge associated with windstorm events. I understand that loss or damage caused by or resulting from Flood, including any flooding and/or storm surge associated with windstorm events, will be subject to the Flood sublimit stated elsewhere in the policy I understand that if I do not sign this form that my application for coverage may be denied or that my policy issued by AmRisc, LLC may be cancelled or non -renewed. I have read and I understand the information above. Named Insured: City of Pearland Account No.: 475997 Policyholder/Applicant's Signature Clay Pearson Print Name Date