SUBJECT
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Polk County Annual Property Renewal (Annual Premium of $2,421,024)
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DESCRIPTION
Polk County’s annual property insurance coverage will expire on March 31, 2024. The property insurance covers over one billion dollars in building values for the Board of County Commissioners and all Constitutional Offices. As is done every year, the county’s insurance broker, Arthur J Gallagher and Co. aggressively markets the insurance program to worldwide insurance companies to obtain the best coverage in return for the most favorable premium available.
The commercial property insurance market over the last few years has experienced unprecedented challenges. Thankfully, there are significant signs of a slowdown in annual premium increases in the commercial property insurance market for 2024, and the results for Polk County are very favorable. The insurance rate for our property coverage is down 2.85% from last year, representing the first time in many years that the rate has decreased. However, as the County continues to construct new facilities (8% increase in total value of buildings insured) the actual premium has increased by 5%. Thus, the premium increase is entirely due to our own organic growth.
The expiring premium for the comprehensive property insurance program was $2,299,141. The renewal quote is $2,421,024, representing a 5% premium increase. There are no changes to coverages, limits, or deductibles.
RECOMMENDATION
Request Board approval for the Risk Manager to bind coverage effective April 1, 2024, through March 31, 2025, for its comprehensive commercial property insurance program for a total annual premium of $2,421,024.
FISCAL IMPACT
Funds are available in the Risk Management General Fund Budget.
CONTACT INFORMATION
Mark Thomas, Risk Management Director 534-5265