Boca’s property insurance premium for 2008 drops

Published April 7th, 2008

By Dale M. King
CITY EDITOR

City officials in Boca Raton are trying to deal with price increases at virtually every turn.

Local leaders breathed a sigh of relief recently when the city renewed its property insurance policy for 2008.  The price dropped more than $300,000, from $1,684,830 to $1,342,424.

“It’s because the market is better,” said Pam Gardner, Boca Raton’s risk manager.  “We did increase property values. We added a couple of new fire stations and the new Spanish River Library.”

Two seasons without a damaging hurricane have also helped to reduce rates, she said.  And the trend is being felt in the county, too.

Palm Beach County’s insurable property values increased 9.2 percent to $1.9 billion, but the insurance premium payment of $13.2 million was a 6 percent drop – or a reduction of $822,640 – from the expiring policy.

According to figures provided by the city, Boca Raton has $261 million in total insured value of property, including electronic equipment, phones and large vehicles.  The city’s water and wastewater treatment plants are covered by another company, which offers a higher level of coverage, but the total payment covers the premiums for all city property, said Gardner.

Boca retains a 3 percent deductible on its property.  The deductible  for the water and wastewater plants is 5 percent.

In its vote, the City Council renewed its policy with Beacon Group Inc., located in Boca Raton.  City records say the policy is entering its seventh year.

Gardner said that when the city bid on insurance in 2002, it awarded the pact to Beacon for a five-year period with three one-year renewals.  Boca is entering its second renewal.

City Manager Leif Ahnell explained “the city has what is called a ‘layered program,’ with many companies taking a different portion of our coverage.  All companies are A-rated or better.”

He said the city also has wind coverage with Citizens Insurance (the state windstorm pool) for all properties east of I-95.

Gardner said the city does not insure “some of the little things.”  She did say that boats owned by the city are insured.