Title: IN2 APPROVAL TO PURCHASE FLOOD INSURANCE

Recommendation:

I recommend that the School Board approve the purchase of flood insurance effective December 31, 2006 to December 31, 2007 at a cost of   $216,599 from The Travelers Insurance Company through our broker, The Beacon Group, Inc.

Description:

·      The District currently insures 23 locations with 212 buildings valued at approximately $501 million dollars and contents valued at $32.6 million dollars located in the applicable Flood Zones.   

·      Without this flood coverage, in the event of a federally declared flood disaster, the School District would not meet all Federal Emergency Management Agency (FEMA) requirements for federal reimbursement.  Based upon current Stafford Act regulations, all locations in Flood Zones A or V are required to purchase coverage from the National Flood Insurance Program (NFIP).  Without NFIP, FEMA will apply the maximum amount that could have been purchased (up to $500,000 per building and $500,000 contents) as a deductible prior to any FEMA reimbursement.

·      NFIP requires the District to purchase one policy per building, for all 212 buildings housed at these 23 locations.  The total insurance coverage is $79.8 million with individual policy deductibles of $50,000 for the building and another $50,000 for the contents.

·      Three years ago FEMA allowed increased deductibles (retentions) from $5,000 to $50,000 with a corresponding reduced premium of $167,779.  We again recommend the $50,000 deductibles with an annual savings of $160,283. 

Financial Impact:

For Additional Information, contact:
Joseph M. Moore (moorej@palmbeach.k12.fl.us / Dianne L. Howard

Attachments (list):
Q&AIN2.doc