HomeMy WebLinkAboutPP_Property_Insurance_Renewal_FY20-21MWMC Regional Wastewater Program
Property Insurance Renewal July 1, 2020
Good Morning
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6/12/2020
MWMC Property Insurance FY20-21
MWMC Property & Liability Insurance
Premium Trend – Looking Back
MWMC Property Insurance FY20-21
6/12/2020
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Regional Partners Insurance
Earthquake Coverage
Lane County reduced EQ Coverage from $50M to $25M
MWMC Property Insurance FY20-21
6/12/2020
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MWMC Property Coverage
Renewal Premium Options – July 1, 2020
Property Insurance Deductible
Currently = $250,000, with some exceptions that result in a greater deductible
EXPLAIN DIC – Difference in Conditions
Current premium: $211,530
Starr Tech Premium reductions with a higher deductible would include:
5% or ($13,878) off the premium if the deductibles listed as flood $250,000 (increased to $500,000) or earthquake minimum of $100,000 (increased to $500,000)
8% or ($22,204) off the premium if each deductible is increased to $1,000,000 (EQ would be 2% with minimum $1M).
Prior Information
$500,000 ($12,700 or 6%) reduction; $200,423 premium
$1 million ($21,200 or 10%) $192,282
$2 million ($29,100 or 13.5%) reduction; $184,330 premium amount
$5 million ($34,000 or 16%) reduction; $179,450 premium
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6/12/2020
MWMC Property Insurance FY20-21
After review and discussion, the Commission is requested by motion, to authorize and direct the General Manager to enter into agreements to secure property insurance coverage for the
period of July 1, 2020 through June 30, 2021.
Action Requested
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6/12/2020
MWMC Property Insurance FY20-21
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6/12/2020
MWMC Property Insurance FY20-21
MWMC Property Insurance FY20-21
6/12/2020
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Regional Partners Insurance
Earthquake Coverage
MWMC Property Insurance FY20-21
6/12/2020
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US Earthquake Analysis
MWMC Property
Terms: OEP - Occurrence Exceedance Probability; AEP - Aggregate Exceedance Probability; AAL - Average Annual Loss; CV - Coefficient Variation; AAL – Average Annual Loss; CV – Coefficient
Variation
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6/12/2020
MWMC Property Insurance FY20-21
MWMC Property Insurance
Planning Forward to FY 20-21
xes $100M earthquake coverage
x$270,330 total premium
xOption 2 – Includes $75M earthquake coverage
$239,640 total; cost difference of $30,700 or 11%
$25M reduction in EQ
xOption 3 – Includes $50M earthquake coverage
$213,435 total; cost difference of $56,900 or 21%
$50M reduction in EQ coverage
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6/12/2020
MWMC Property Insurance FY20-21