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Council reviews specialty timber-fire insurance and insurer exclusions; staff to return with definitions
Summary
City staff and a broker reviewed a specialty timber-fire insurance quote that would cover municipal timber holdings. Council members questioned exclusions (drought, subterranean fire, arson), salvage/adjustment procedures, and a $200,000 firefighting deductible; staff will email definitions and confirm coverages before any purchase decision.
City officials reviewed a specialty timber-fire insurance proposal that would cover municipal timber assets and discussed exclusions, salvage valuation and costs.
The proposed 12‑month premium quoted to the city was $100,739.70, placed through a specialty Lloyds market broker because standard carriers rarely underwrite this coverage. The broker described typical policy features and exclusions — including drought, subterranean fire and pollution — and said losses would be adjusted by satellite assessment with tiered partial payouts rather than a single total-loss payment.
Council members pressed staff to confirm precise definitions and policy language before deciding whether to bind coverage. A staff speaker said they will follow up by email “first thing tomorrow morning” with the requested definitions and to confirm whether arson, drought-caused losses or underground-root fires would be covered or excluded. The broker also confirmed the policy’s firefighting expense deductible would be $200,000.
Why it matters: the city has timber holdings with potential wildfire exposure. Specialty coverage is available but often contains unusual exclusions and large deductibles; the council asked for precise policy language and definitions to evaluate whether the proposed product meets the city’s needs and risk tolerance.
Next steps: staff will provide the written definitions and a follow-up note to council clarifying exclusions (drought, subterranean/subsoil fire, arson), salvage and adjustment procedures and whether closure of recreation uses is required by the carrier. No binding purchase was recorded during the work session.
