SUBJECT
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2026 Property Insurance Renewal (One Time Cost of $1,835,312)
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DESCRIPTION
Polk County’s annual property insurance coverage will expire on March 31, 2026. The policy provides comprehensive property coverage for over $1.1 billion in County-owned buildings and related assets for the Board of County Commissioners and Constitutional Offices. As is done each year, the County’s insurance broker, Arthur J. Gallagher & Co., marketed the program to global insurers to obtain the best coverage available at the most favorable premium.
Following several years of difficult insurance market conditions, the commercial property insurance market has continued to stabilize. Last year, the County achieved a substantial reduction in premium. This year’s renewal continues that positive trend by improving coverage while still reducing the overall program cost, representing two consecutive years of premium reductions while strengthening the County’s coverage position.
During the challenging insurance market in 2023, the County reduced certain limits to mitigate significant premium increases. With improving market conditions, the proposed renewal restores coverage by increasing the named windstorm limit from $20 million to $30 million and reducing the All Other Perils (AOP) deductible from $1,000,000 to $500,000 (fire and other non-wind losses).
Despite these coverage enhancements, the total premium for the comprehensive property insurance program is $1,835,312, a reduction from last year’s premium of $1,879,308.
RECOMMENDATION
Request Board approval for the Risk Manager to bind coverage effective April 1, 2026, through March 31, 2027, for Polk County’s comprehensive commercial property insurance program for a total annual premium of $1,835,312.
FISCAL IMPACT
Funds are available in the Risk Management General Fund Budget.
CONTACT INFORMATION
Mark Thomas, Risk Management Director
534-5265