DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Renew Commercial Property Insurance Contract With Affiliated FM
end
PURPOSE/ACTION REQUESTED
Authorize the Director of Risk and Emergency Management to renew the commercial property insurance contract with Affiliated FM.
SUMMARY
While the County is self-insured for general liability exposures, it purchases several types of commercial insurance (property, crime, and auto) when it makes financial sense. The property insurance policy is up for renewal on July 1, 2026.
Affiliated FM is the County's current property insurance carrier and has insured County properties since 2007. Total property values increased by 4.2 percent in 2026 to $674,975,576. This increase was related to the completion of the Lebanon Hills Maintenance Facility.
Risk works collaboratively with Affiliated FM to manage property insurance premium costs. Our property insurance premium includes access to Affiliated FM's engineering service who conduct regular building inspections to identify loss exposures and to review new capital projects for loss control recommendations prior to construction beginning.
Industry trends indicate a 5.5 percent decrease in commercial property premiums in 2026-the first reduction since 2017. Affiliated FM's property insurance quote reflects a composite rate of $.064 per $100 of value, an 11 percent reduction from the 2025-2026 policy period. The total premium for July 1, 2026, through July 1, 2027, is $429,516. This premium quote is also based on a change in our deductible from $25,000 to $100,000. Our loss history supports this increase as we have not had an insurable loss exceed our $25,000 deductible since 2021. The annual premium savings and the County's ten year loss history combined support a shift to the higher deductible.
Risk Management received one competitive quote in addition to the Affiliated FM renewal. GovPro Insurance, a new property program offered...
Click here for full text