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Spring Cleaning – Are You Covered?
By Kristina Peterson, Director of Underwriting, SDPAA
Spring is right around the corner, which is a good reminder to review if you have enough coverage in place to protect your entity if a claim should arise. One of the biggest questions SDPAA receives is regarding building contents values. What is included in the coverage values? Should vehicles and mobile equipment be included?
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Overall, contents values can sometimes be complex to figure out. SDPAA’s rule of thumb is any item not attached to the building itself, and any item not specifically listed on a statement of values, should be considered contents. Items that should be listed on a statement of values include fine arts, hardware or software items, mobile equipment and vehicles.
For example, a shop building is listed with a building value of $100,000 and inside the building is an attached control panel, two lawn mowers, and office supplies with a desk, computer and chair. The building value should include the control panel as it is attached to the building. The two lawn mowers and the computer would be listed on their respective statement of values and the office supplies, desk and chair would be considered contents. One way to review your contents values is on the Property Valuation Report, which is included in your renewal packet every year. It can also be sent to you at any time, upon request. In the report, each location is listed, with current building and contents values. If a contents value is listed at $0 and an incident occurs, there will be no coverage for the contents of the property. Therefore, it is extremely important to have updated values for both buildings and contents in the event of a claim. SDPAA
recommends the contents values should represent the highest value of contents located in the building at any
one time during the year. This allows for movement of small tools, materials, and supplies in and out of buildings, while sustaining proper coverage.
In addition to the Property Valuation Report, SDPAA Members may request to receive an Excel spreadsheet of their property coverages, including buildings and contents, inland marine, EDP hardware, EDP software, fine arts, miscellaneous equipment and tools and auto physical damage.
For any other questions, contact our office at 800-6583633 or email kpeterson.sdpaa@sdmunicipalleague.org.
