ITEM NO: 7a_Supp 
DATE OF 
MEETING:__6//5/2012______ 
Property Insurance 
Renewal Update 
Presented 6/5/2012 
Jeff Hollingsworth, Risk Manager

Outline 
Port Has A New Broker 
Structure of Property Insurance 
Cost Re-Cap 
Coverage Details and Cost Factors 
Earthquake Coverage Notes 
Renewal Projection for July 1, 2012 

2

Port Property Broker 
New broker on account for renewal 
Selected through a competitive process 
Hugh Wood Incorporated 
Worked with them before 
Visited site last week 
Goal will be to maintain coverage/limits 

3

Current Structure of Property Program 
(Main Limits Insured Per Occurrence Unless Noted) 
$1 Billion Fire/Extended Coverage Limit;
$25 Million Flood Limit (Annual) 
$50 Million Course of Construction Limit 
$350 Million Terrorism 
$100 Million Equipment Breakdown 
$100 Million Business Interruption 

4

Current Structure of Property Program 
(Major Deductibles Per Occurrence) 
$500,000 Fire and Extended Coverage 
$500,000 Flood
$50,000 Course of Construction
$25,000 Fine Arts 
$100,000 Equipment Breakdown 

5

Property Insurance Cost Re-Cap 
$4,500,000
Property Insurance Premium versus Port Insurable Values 
$4,000,000

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

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$-
2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011  2012 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 

7

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 

8

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 ) 

9

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 is not having coverage quoted. 
10

Property Renewal Forecast 
(For July 1, 2012) 
Port has budgeted $1.50 Million for renewal 
Final proposal/cost will depend on: 
Final adjustment of insured property values 
Final estimation of capital projects for 2012-2013; 
Changes, if any, to program structure (deductibles/coverage/limits) 



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