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ull/M <br />$1 Mil <br />$6,273 <br />$8,623 <br />$2,350 <br />37.46% <br />Statutory AD&D <br />$75,000 <br />$13,040 <br />$13,040 <br />0.00 <br />0% <br />JG Brokers Fee <br />$125,000 <br />$125,000 <br />0.00 <br />0% <br />Total <br />$4,084,859.04 <br />$4,420,682.70 <br />$335,823.66 <br />8.22% <br />ANALYSIS <br />Since 2020, the commercial property insurance market has demonstrated persistent premium increases, <br />specifically in the state of Florida. As we are all aware, Florida is experiencing an affordability crisis in the <br />procurement of property insurance coverage. Fortunately, the insurance market is starting to soften in the <br />commercial property arena, providing a much-needed reprieve from excessive insurance rates. The FY26 <br />property renewal rate decreased by 17.37% over the expiring rate, allowing the County to negotiate an <br />increase in named storm and flood coverage limits. The total FY26 renewal premium increased 8.22% over <br />the expiring year. <br />A copy of the detailed Executive Summary prepared by AJG has been provided for your review. The major <br />highlights of the FY26 renewal are as follows: <br />Property Program: This remains a layered program with multiple carriers. The renewal is based on a 10.89% <br />increase in total insured value of $409.6 million to include new buildings (Traffic Building, Sheriff Building, <br />restroom facilities at Fran Adams Park, Hosie Shuman Park, Kiwanis Park and Victor Hart Park) as well as <br />the North Library expansion and specific locations in the open. The renewal premium is $2,032,685 which is <br />an overall decrease of 3.44% from expiring and includes increased limits from $25 million to $35 million for <br />named storms and flood events on the Non -Utilities Property program. <br />Utilities Property Pram; This remains a standalone policy separate from the non-utility property program. <br />This year's renewal is based on a total insured value of $297.5 million; a 13.89% increase in values from last <br />year. The total insured exposure increase is mainly driven by the appraisal values received in 2024. The <br />renewal premium is $1,291,449 which is an overall increase of 34.06% resulting from increased insured <br />values and increased flood limits from $10 million per occurrence to $15 million per occurrence. <br />Excess Workers Comp: The Workers Compensation market continues to be limited in Florida for entities with <br />Police and/or Fire exposures, which are subject to presumption laws. Fortunately, the County has successfully <br />maintained coverage with the same carrier for over 10 years. This year the County received two renewal <br />options from the incumbent carrier: <br />1. $850,000 deductible with a premium of $403,771 resulting in a 12.39% increase; or <br />2. $1,000,000 deductible with a premium of $356,096 resulting in a -12% decrease. <br />Staff recommends option 1 - $850,000 deductible per claim, which is the same as the expiring policy. All <br />terms and conditions remain the same. <br />BUDGETARY IMPACT <br />The County's property and casualty coverage is funded through the Self Insurance Fund (502). This is an <br />Internal Service fund that is supported by charges to operational funds of the County. The current fiscal year's <br />portion of the proposed premium will be funded from account number 50224613-034590 (Self Insurance Fund <br />- Other Insurance). The Self Insurance Fund is supported by all other departments and the premium costs are <br />Indian River County, Florida Page 2 of 3 Printed on 4/17/2025 <br />powered by Legistarl" 38 <br />