Report to Carson Reclamation Authority
Tuesday, May 08, 2018
Discussion
SUBJECT:
Title
APPROVE A BUILDER'S RISK POLICY IN THE AMOUNT OF 100% OF THE REPLACEMENT VALUE OF THE HORIZONTAL AND VERTICAL CONSTRUCTION COMPONENTS ON THE COVERED PROPERTY, AT A PREMIUM ESTIMATED TO BE $906,409, TO BE SHARED WITH CAM-CARSON, LLC BASED ON CONSTRUCTION VALUES, ALL PROCURED THROUGH JLT SPECIALTY INSURANCE SERVICES, INC.
Body
I. SUMMARY
This is the Builder's Risk policy for the development of the horizontal and vertical elements of Cell 2, the Macerich project.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. AUTHORIZE the Executive Director to bind coverage on behalf of the Carson Reclamation Authority on a Builder's Risk (BR) policy with a limit of liability equal to 100% of the replacement value of all horizontal and vertical construction components $398,938,087 (estimated), plus Earthquake and Delay in Start Up coverage, having a term of 32 months, with a total estimated cost of $906,409 including broker commission and surplus lines taxes, with premiums to be shared with CAM-Carson, LLC based on construction values.
1.
Body
III. ALTERNATIVES
TAKE any other action the Reclamation Authority Board deems appropriate.
IV. BACKGROUND
1. Carrier, Limits and Premium
Stand-Alone Policy Builder's Risk (BR)
Carrier London consortium (primary carrier)
Limit of Liability: Limit equal to 100% of the replacement value of all horizontal and vertical construction components $398,938,087 (estimated)
Earthquake Aggregate $50,000,000
Delay in Startup (MAC) $25,311,148
2. Self-Insured Retention (Deductible): $50,000 per occurrence, except:
? Waterdamage: $100,000
? LEG3 (coverage for damage resulting from material defects): $150,000
? Earthquake: 5% of value of the values at risk at the time of loss with $250,000 minimum and $5,000,000 maximum
? Delay in start-up: 45 days aggregate (60 days aggregate if caused by Earthquake)
3. Premium Allocation: Allo...
Click here for full text