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School Board Meeting 04-17-13 at 5pm
Agenda Item #60


Title
IN1 Approval to Purchase Flood Insurance

Description

In order to qualify for reimbursement in a federally declared flood disaster, the Federal Emergency Management Agendy (FEMA) requires that the School District purchase insurance from the National Flood Insurance Program (NFIP) for all buildings in Flood Zones A and V.

The School District now has 30 locations with 118 buildings valued in excess of $769 million in Florida Zones A and V.  FEMA requires the District purchase one policy per building up to an insured limit of $500,000.  We have 118 buildings in these zones for a total building coverage of $58.2 million and contents coverage of $39.7 million.  We will have $50,000 deductible for each building and another $50,000 for contents in each building.  If a federal declaration of disaster applies FEMA reimbursement would apply after policy limits are exhausted.

The total premium for the flood insurance is not to exceed $245,000, barring any federal rate increase prior to April 30, 2013.  Premium and commission amounts are set by the Federal Government.  The broker is placing the flood insurance with the Travelers' Insurance Company.



Recommendation
I recommend that the School Board approve the purchase of flood insurance effective April 30, 2013 to April 30, 2014 at a cost not to exceed $245,000 through the Plastridge Insurance Agency.

My Contact

Michael J. Burke, Chief Operating Officer (mike.burke@palmbeachschools.org)

Dianne L. Howard, Director, Risk and Benefits Management (dianne.howard@palmbeachschools.org)

 



Financial Impact
The financial impact to the District is not to exceed $245,000.  The source of the funds is a Capital Fund transfer to the General Fund


Attachment:  Plastridge Beneficial Interest and Disclosure Form (1).pdf
Attachment:  Schools in Flood Zones.pdf