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Council amends property insurance renewal to $75 million limit and approves amended premium
Summary
After questioning by council members, Pearland amended its annual property insurance renewal to a $75 million coverage limit (up from staff's recommended $60M option) and approved the amended premium; broker McGriff said the incremental cost for the higher limit was modest in the current market.
City staff and its broker McGriff presented the city's annual property insurance renewal for wind, hail and wind‑driven rain. Staff said the renewal increases insured value to include new buildings and lowers the annual premium by about $94,000 compared with last year while raising per‑incident coverage. The packet included two coverage options discussed by council: a $60 million limit and a $75 million limit.
Johnny Fontenot of McGriff explained the market and presented modeling showing that a 1‑in‑10,000 windstorm could produce a modeled maximum foreseeable loss larger than either limit. Council member Patel argued the council should accept a modest additional premium to get the extra $15 million in limit for "peace of mind." Council discussion noted that the incremental premium to move from $60M to $75M was relatively small (council cited about $63,000 in additional premium) and staff provided a combined amended premium figure for the $75M option.
Council member Patel moved to amend the resolution to purchase the $75 million limit; the amendment was accepted and passed on a recorded vote, and the council then voted on the amended resolution, which passed 7–0. Staff said the amended combined premium (as stated in the meeting) was approximately $1,497,823.27 (staff provided the line items during the discussion).
