SDPAA New Building Valuation Report for 2016 By Kristina Peterson, Director of Underwriting, SDPAA Property values are constantly changing due to depreciation, additions to buildings, remodeling projects and inflation. Members who purchase SDPAA property coverage receive property valuations from Safety Benefits Inc. (SBI), every four years. SBI assesses the covered locations and provides a Marshall & Swift analysis of the replacement cost of each building. SBI also provides a binder with the property assessments, past claim information and a property review of each building, with recommendations, if any, to complete and return to SBI. Beginning January 2016, SDPAA will provide a Property Valuation Report with each Member’s renewal packet. This report will include the following for each property on their statement of values: j j j j j j j j
Location Number Occupancy Description Building Address Current Valuation of the property (replacement cost, actual cash value) Current Building Value Building Replacement Cost Value established by SBI The year the property was last valuated by SBI Contents Value
The report is a snapshot of current valued property and the latest SBI valued amount for each property. Members will
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have a side-by-side comparison of their current value versus the replacement cost calculated by SBI, and are able to make any adjustments to their property values. Also in the report, Members are able to view and adjust their current contents value for each property, which should be reviewed each year as well. It is extremely important to have correct values for both buildings and contents in the event of a claim. For building values, Members may use SBI’s valuations as a starting value and adjust accordingly. 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 equipment, materials, and supplies in and out of buildings, while sustaining proper coverage. This report allows Members to conduct an annual evaluation to make sure property is covered at the appropriate value. 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. This is a new feature SDPAA is able to provide to our Members to assist with sorting, calculating and allocating contributions to the appropriate departments. For any questions regarding the Property Valuation Report, or to receive an Excel spreadsheet of your property listing, please contact SDPAA at sdpaa@sdmunicipalleague.org or 800.658.3633.
SOUTH DAKOTA MUNICIPALITIES
