DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Renew Commercial Property Insurance Contract with Affiliated FM Insurance
end
PURPOSE/ACTION REQUESTED
Authorize the Risk Manager to renew the commercial property insurance contract with Affiliated FM Insurance Company (Affiliated FM).
SUMMARY
While the County is self-insured for general liability exposures, it purchases several types of commercial insurance (property, crime, and auto) where it makes financial sense. The property insurance policy is up for renewal on July 1, 2025. The crime insurance policy was renewed on April 1, 2024, and is a three-year policy.
Affiliated FM is the County's current property insurance carrier. Total property values increased from $610,727,404 to $647,695,047 since the last policy renewal. This increase reflects a 2.0 percent increase to all insured property values based on construction cost trends. Our property portfolio also had the additions of the Integrative Health Unit and the Crisis and Recovery Center in April 2025.
With respect to on-going efforts by the County to control our insurance premium costs, Risk and Facilities Management work collaboratively to address items identified during onsite inspections by engineers with Affiliated FM at county buildings. The recommendations were for improvements to areas identified as opportunities to reduce exposures and in turn recognize insurance premium savings. The County has not experienced a reportable property loss since December 2021. This loss was a windstorm damage claim which resulted in $68,003.19 in damages to the Farmington Highway Shop.
The quote from Affiliated FM (Attachment) for the property policy reflects a composite rate of $.072 per $100 of value, this remained flat from the 2024/2025 policy period. The total Affiliated FM premium for July 1, 2025, through July 1, 2026, is $464,278. The increase in premium is reflective of an increase in our overall property portf...
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