Agenda Item Wording:
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Property Insurance Replacement Coverage - Approve City's participation with the Alliant Property Insurance Program effective July 1, 2025, and authorize payment of the policy in the amount of $477,873.38.
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Deadline for Action: 7/21/2025
Submitting Department: Administration
Contact Name and Phone Number: Andrew Guzman, Risk Manager, (559) 713-4335 andrew.guzman@visalia.city; Shonna Oneal, Administrative Services Director, (559) 713-4053 shonna.oneal@visalia.city
Department Recommendation:
Staff recommends the approval of the City's participation in the Alliant Property Insurance Program (APIP) for property insurance coverage, replacing the non-renewed Fireman's Fund Insurance Company policy, effective July 1, 2025.
Background Discussion:
On May 28, 2025, the City's broker of record, AJ Gallagher, notified the City that Fireman's Fund Insurance Company (Allianz), elected not to renew the City's property insurance policy, effective June 30, 2025. The policy provided comprehensive property insurance coverage for the City's buildings and machinery. The non-renewal was not based on any City-specific claims or risk factors, but rather reflects the current hard insurance market conditions, as carriers continue to withdraw from California markets following significant losses from recent flooding and wildfire events.
The City's expiring property insurance policy with Fireman's Fund Insurance Company (Allianz) provided a blanket limit of $250,000,000 for the City's covered properties. This limit represents the maximum amount Allianz would pay for any covered loss event, regardless of the number of buildings or types of property involved. Blanket coverage means that our insurance limit applies collectively across multiple properties, rather than assigning individual limits to each location. For example, rather than having separate limits for the City Administration Building, Recreation facilities, and Police substations, the $2...
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