Report to Carson Reclamation Authority
Monday, October 04, 2021
Discussion
SUBJECT:
Title
CONSIDER RENEWAL OF A PROPERTY INSURANCE POLICY WITH STARRTECH WITH A LIMIT OF $40 MILLION WITH A $5 MILLION EARTHQUAKE SUBLIMIT AT A PREMIUM NOT TO EXCEED $265,000 PLUS SURPLUS LINES TAXES AND STAMPING FEES OF 3.25% (ESTIMATED AT $8,612.50) PROCURED THROUGH MARSH/JLT SPECIALTY INSURANCE SERVICES, INC.; AND AUTHORIZE THE EXECUTIVE DIRECTOR TO BIND THE POLICY
Body
I. SUMMARY
This action was discussed at the September 7, 2021 Regular Meeting and the September 9, 2021 Adjourned Meeting and authorizes the Executive Director to approve and bind a renewal of a Property Insurance Policy on behalf of the CRA. Since the end of 2017 the Authority has had a Builder's Risk ("BR") policy on the Site instead of property insurance because of the ongoing construction of the remedial systems (premium paid for by the CRA) and the vertical construction (premium paid for by CAM). Last year the Board approved the renewal of the BR policy for a year; that policy's term ended on September 12, 2021 and was extended by one month, to October 12, 2021. No renewals are available after that date.
The policies were presented by the Broker to the insurance markets for renewal quotations in August 2021, under new terms: with the work stoppage on Cells 2, the coverage would be for property insurance on already-constructed improvements until the resumption of construction. Faring, the developer of Cells 3, 4, and 5 would develop and procure their own Builder's Risk and GL programs for those cells. If construction resumed during the term the property policy may be able to convert to a BR policy though the timing doesn't suggest that will be necessary. This policy only covers Cells 3, 4, and 5 and Cell 1.
As of September 7, no quotes for the renewal were received by the CRA. The Broker indicated that due to significant changes in the property insurance market, the CRA is seeing a significant inc...
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