Item No.:                    7b_supp 
Meeting Date:            June 24, 2014 
Property Insurance Renewal
Update

Outline 
Structure of Property Insurance 
Cost Re-Cap 
Coverage Details and Cost Factors 
Earthquake Coverage Notes 
Renewal Projection for July 1, 2014 

2

Current Structure of Property Program 
(Main Limits Insured Per Occurrence Unless Noted) 
$750 Million Multi Peril Coverage Limit
$25 Million Flood Limit (Annual) 
$50 Million Course of Construction Limit 
$350 Million Terrorism 
$100 Million Equipment Breakdown 
$100 Million Business Interruption 

3

Current Structure of Property Program 
(Major Deductibles Per Occurrence) 
$500,000 Fire and Extended Coverage 
$1,000,000 Flood
$50,000 Course of Construction
$25,000 Fine Arts 
$1,000,000 Equipment Breakdown 

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$5,000,000
Property Insurance Premium versus 
Port Insurable Values 
$4,500,000

$4,000,000

Property Insurance Premium
$3,500,000
Property Value x $1000
$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$-
2003    2004    2005    2006    2007    2008    2009    2010    2011    2012    2013   2014 est

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Coverage Details 
Annual Policy  July 1st through June 30th 
Fire and Extended Coverage 
Wind, Spills, Collapse, Impact, and Explosion 
Covers Equipment Breakdown 
Mechanical/Electrical Equipment 
Covers Owned, Leased, Rented Property 
Example  Applied to leased generators 
Covers Business Interruption 
If Due to a Loss Covered by the Policy 

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Coverage Details 
Annual Policy  July 1st through June 30th 
Covers Flood 
Excludes Land Movement/Earthquake 
Covers Terrorism 
Covers Projects Under Construction 
* All subject to exclusions either by peril,
location, or type of property 

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Property Insurance Cost Factors 
Rates depend on: 
Total Insurable Values Reported: 
Appraisals 
Values of Projects Under Construction 
Loss Record 
Primary and Reinsurance Markets 
Underwriting of Locations (Port Portfolio) 
Cost of Major Materials 
Catastrophic Exposure (Wind, Earthquake,
Flood ) 

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Earthquake Insurance Challenges 
Low limits compared to values at risk 
Past loss history with Nisqually in 2001 
New modeling used by insurers 
Port has high insurable values 
Port has aggregation of values 
Insurers with aggregation of values locally 
Port did look and review pricing on a catastrophe
bond; but pricing too costly

Property Renewal Forecast 
(For July 1, 2014) 
Estimated renewal premium of $1.51 Million
Will bind coverage on June 30th 
Final proposal/cost will depend on: 
Final adjustment of insured property values 
Final estimation of capital projects for 2014-2015 
Changes, if any, to program structure
(deductibles/coverage/limits) 
Negotiation with the underwriters 

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