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HomeMy WebLinkAboutRES 24-110RESOLUTION NO.24-110 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute a contract for property, equipment breakdown, and terrorism insurance for an annual premium amount of $2,698,180.50 provided by Texas Municipal League Intergovernmental Risk Pool, Texas Windstorm Insurance Association, and AmRisc, Velocity Risk Underwriters (Lloyds), Starstone Specialty, AXIS Surplus Lines Insurance Company, Arch Specialty, Markel, Kinsale, Spectrum, Westfield, Sompo, Lexington, Westchester, and RSUI Indemnity Insurance Company effective May 1, 2024; boiler and machinery coverage, and terrorism insurance coverage provided by Texas Municipal League Intergovernmental Risk Pool effective May 1, 2024. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Governntent Code, Chapter 551. 2024. PASSED BY THE CITY COUNCIL of the City of this the 30th day of April, - Mayor Roy West - WINDSTORM INSURANCE PROPOSAL "Gh CITY OF BEAUMONT Effective May 1, 2024 VV 500 Dallas Street, Suite 1400 o Houston, TX • 77002 Phone: 713-787-2400 www.Victorinsurance.coin V Aff V I C T O R VICTOR INSURANCE MANAGERS LLC April 11, 2024 Marisa Arceneaux Liability Administrator City Attorney's Office 801 Main Street Beaumont, Texas 77701 RE: WINDSTORM -HAIL INSURANCE PROPOSAL City of Beaumont Marisa, Victor Insurance Managers is pleased to provide you with the attached 2024 windstorm/hall, & flood proposal. In February, Victor Insurance obtained a broker of record for City of Beaumont's windstorm insurance coverage placement for 2024. To ensure that we offered the most favorable terms and conditions for the city, Victor Insurance Managers, in collaboration with our wholesale broker, conducted an extensive marketing effort. Our team utilized creative underwriting strategies and led internal team meetings to carefully analyze and negotiate optimal terms that align with the City of Beaumont requirements. Thank you for considering our proposal. We are confident that our expertise, industry knowledge, and commitment to exceptional service will make us a great partner for the City of Beaumont. Please review, and we will arrange a meeting to discuss the quotes in detail. I can be reached at 713-787-2424 or you can email me at Heena.Patel@Victorinsurance.com. Sincerely, Heena Patel Senior Account Executive, Vice President Victor Insurance Managers LLC Victor Insurance Managers LLC 500 Dallas Street, Suite 1400, Houston, TX 77002 V I C T O R VICTOR INSURANCE MANAGERS LLC City of Beaumont, Texas 2024 Windstorm -Hail Insurance Proposal Executive Summary We appreciate the City of Beaumont giving us the opportunity to quote its windstorm and hail coverage, and we are pleased to present you with our comprehensive proposal for consideration. Victor Insurance Managers, with expertise in public entity insurance, has conducted a thorough marketing effort, utilizing creative underwriting and technical skills. Our proposed structure consists of approximately 15-16 windstorm policies as well as about 55 flood policies at a total cost of slightly under $2.9 million. Proposal Summaru Through our diligent efforts, Victor Insurance has effectively enhanced the terms and conditions of the insurance coverage in various aspects: 1. Overall total insurable value increased by over 2.5%. Despite the increased values, we are pleased to offer insurance that is approximately 12% lower than the expiring cost, providing the city with significant savings. 2. Separate Limits for Property and Wind/Hail—which will enhance the city's ability to manage risks effectively. The expiring policy had a combined limit of $50 million for property and windstorm, whereas our proposal offers separate limits and higher limits for property and windthail. 3. Enhanced Limits: Our proposal includes full limits for special forms, offered by the Texas Municipal League Intergovernmental Risk Pool (TMLIRP), as well as a $50 million loss limit for windstorm and hail coverage in the open market. Additionally, an additional $60.5 million in windstorm limits is covered through the Texas Windstorm Insurance Association (TWIA). 4. Deductible Reduction: The locations covered through TWIA are at 1 %, compared to the expiring policy's 3% deductible for named storms. This reduction in deductible will result in lower out-of- pocket costs for the city. 5, Increased Flood Coverage: By adding TML flood limit and the NFIP separate flood quotes, we have been able to offer $43 million in flood coverage, a significant increase from the expiring policy's $15 million coverage. Furthermore, our proposal includes a low flat deductible for flood policies placed through NFIP. Refer to TML quote for its flood deductibles. 6. Roof Replacement Cost: TWIA offers full replacement cost coverage for roofs. This enhancement ensures that the city's assets are adequately protected. Victor Insurance Managers LLC 500 Dallas Street, Suite 1400, Houston, TX 77002 V AW VICTOR VICTOR INSURANCE MANAGERS LLC 7. Wind Driven Rain Coverage: The renewal terms include $1 million in wind -driven rain coverage, which was excluded in the expiring policy. This additional coverage provides comprehensive protection for the city's assets. Please see proposal details contained in our formal response for all terms and conditions of the various options. Limitations 1. Terrorism and Earthquake Coverage: While the expiring policy provided $100 million in terrorism coverage and $15 million in earthquake coverage, our renewal terms offer $25 million in terrorism coverage and $5 million in earthquake coverage. 2. Maximum Building Limitation: Each structure insured through TWIA will have a maximum building limitation of $4.424 million. 3. 1 s' installment TWA payment must be received prior to effective date. 4. NFIP policies offer maximum $500,000 building and $500,000 contents at actual cash value coverage. 5. There is a 30 day grace period for NFIP before coverage becomes effective. Victor Insurance Managers LLC Victor has been in business for over 65 years and has had a Houston based team dedicated to public entities for over 40 years. Our office has been the exclusive broker for Texas Municipal League Intergovernmental Risk Pool (TMLIRP) since 1983 and currently serves the windstorm needs of over one hundred TMLIRP members along the Gulf Coast. Victor was the agent of record for windstorm coverage in the early 2000's. We are confident that our experience, capabilities, and enclosed proposals will give us the opportunity to serve the City of Beaumont and your windstorm needs once again. Servicing Plan The Victor Houston team consists of seven full time employees with over 100 years of combined public entity experience. The details of our following proposal will demonstrate that we will exceed all your servicing criteria as it relates to our overall experience, servicing capabilities, agency resources, technical skills, and capabilities specific to windstorm. Our servicing plan for the city is comprised primarily of two components -- a general service plan as it relates to your policy management, and a claim servicing plan in the event of a claim. The details of our proposal will highlight each of these plans with a single point of contact for servicing or for reporting claims. Although you will have a single point of contact, our entire Houston team will be available to respond to all your service needs and be your advocate for claims. Victor Insurance Managers LLC 500 Dallas Street, Suite 1400, Houston, TX 77002 V Aff VICTOR VICTOR INSURANCE MANAGERS LLC Conclusion Thank you again for the opportunity to present this proposal for your consideration. Victor Insurance Managers, in collaboration with our wholesale partner, has worked diligently to offer the City of Beaumont a windstorm insurance proposal that not only reduces the total cost but also provides higher and separate limits for wind/hail, flood, and all other perils compared to the expiring policy. As demonstrated in our history with Beaumont, we are confident our experience and technical expertise will exceed your service expectations while executing a proven strategy to ensure you receive the most competitive windstorm options now and in the future. We look forward to partnering with the City of Beaumont. Victor Insurance Managers LLC 500 Dallas Street, Suite 1400, Houston, TX 77002 v 'AM V I C T O R VICTOR INSURANCE MANAGERS LLC Victor Insurance Managers LLC 500 Dallas Street, Suite 1400, Houston, TX 77002 VICTOR VICTOR INSURANCE MANAGERS LLC SERVICING CRITERIA FORM 1. Number of Years in Business: • Victor Insurance Managers LLC (Victor) has been a leading underwriting manager of professional liability and specialty lines of coverage for over 65 years, with a dedicated public entity team for over 40 years. 2. Size of agency and staff: • The Houston Public Entity Group is made up of seven full-time employees. 3. Experience of staff: • The group has over 100 years combined public entity experience with the majority of our business located in Texas. As such, we are well versed in the needs of public entities within the state. 4. Professional servicing capabilities: • The team's public entity experience and knowledge, our access to markets, and our relationship with TMLIRP, allows us to provide the necessary coverages for members with exposures not covered in the TMLIRP program. • The combined relationship with TML means a single point of contact for claims reporting and coordination. • An annual review of the windstorm property schedule with the City and with the current TML property coverage schedule allows us to identify any location and/or coverage changes necessary. 5. Capability and willingness of agency resources to personally respond to the professional needs of the insured in a timely manner: • The group works together to ensure that you are always able to contact someone during business hours. 6. Technical skills of staff: • The Houston Public Entity Group has provided a broad array of services to TMLIRP for more than 40 years including, but not limited to, underwriting and policy administration, marketing, accounting, consulting, reinsurance placement, claims management & loss control. TMLIRP is one of the largest public entity pools in the country. • Victor currently writes over 500 windstorm/hail policies for TMLIRP members. 7. Service Plan: • Victor Insurance is committed to providing outstanding service and support for your windstorm insurance needs. Our comprehensive servicing plan encompasses review of schedules, binders, quotes, as well as conducting visits, facilitating policy deliveries, and advocating for claims within a timely manner. • With our dedicated team, we will aim to address any inquiries promptly within a 24-hour timeframe during business hours. in Our core point of contact will be Heena Patel and can be reached via email at Heena.Patel@victorinsurance.com or by phone at 713-787-2424. However, our commitment extends beyond individual contacts. Our entire Houston team is available to respond to service requests. The qualifications of our personnel are detailed in the individual resumes included in this submission. • The accompanying flow chart will further outline servicing and claims handling expectations. Li Li a VICTOR VICTOR INSURANCE MANAGERS LLC CLAIMS SERVICES FORM 1. What is the location of the office that will be handling the City's account? TMLIRP Victor Insurance Managers PO Box 149194 500 Dallas St., Ste 1400 Austin, TX 78714 Houston, TX 77002 1-800-537-6655 713-787-2400 alpmaiI@tmlirp.ora publicentities.usQvictorinsurance.com 2. Describe any special assistance you will provide to the City with regard to underwriting information, or settling claims. Due to our relationship with TMLIRP, Victor Account Executives work closely with their underwriters, claims department, and Member Service Managers. Victor is provided copies of property schedules and any pertinent underwriting information obtained by TMLIRP. 4. Other relevant information Due to the commitment of Victor Account Executives, we are readily available to meet with the City upon their request. We provide a personal but professional rapport with contacts at the public entities we service. In addition, we pride ourselves in customer service and teamwork within our office.