advertiser this month is GAB Robins North America, Inc., specialists
in preparing insurance appraisals and reserve studies for country
clubs. They have provided the following information
about their appraisal services and how they can benefit country
club managers. Next
month, they will tell us about reserve studies.
“Are you prepared
if a hurricane, tornado or other disaster damaged or destroyed
your club facilities?” asks Senior Appraiser Bruce D. Riemann
of GAB Robins. You would want to begin to rebuild immediately,
but what if you discovered that your insurance wouldn’t cover
the entire cost because the limits of your coverage were too low?
This is the
situation that has faced some property owners in Florida and the
Southeast after recent El Nino weather events.
Don’t let it happen to you.
You can ensure that your insurance coverage is adequate
by having a professional insurance appraisal prepared.
Seeking professional advice in financial matters can save
you money and headaches in the future.
When the time comes to renew your insurance policy, how do you
determine the amount of coverage needed?
If you are like most club managers, you rely on your insurance
agent, accountant or a local builder for advice.
Or you may simply increase your coverage each year by a
percentage approximating the rate of inflation.
Neither of these is the most precise method of determining
the current reproduction cost of your club’s property.
Why is it important to have an accurate reproduction cost? An accurate reproduction cost provides
you with a basis for purchasing just the right amount of insurance
coverage. The consequences
of incorrect coverage amounts are serious.
If your property is under-insured, you could face enormous
unplanned expenses in the event of a loss.
There is also a cost to being over-insured. Paying higher than necessary premiums
is like throwing away money.
An excellent way to ensure that your property is neither
under or over-insured is to have an independent insurance appraisal
is unique. Only a
complete inspection and evaluation of the construction of the
property can produce an accurate estimate of what it would cost
to reproduce that property today. After a thorough analysis of the construction
of each building component, GAB Robin’s appraisers use proprietary
software to calculate reproduction costs using current cost data. Building material and labor cost data
is obtained from Marshall & Swift, the leading source for
this information. It
is updated quarterly and localized by zip code.
This methodology provides the most accurate estimate of
a building’s reproduction cost available today.
wait for disaster to strike to find out that you are not adequately
covered. The Riviera Country Club in Coral Gables,
Florida had an insurance appraisal prepared by GAB Robins North
America. As a result
of renovations, Manager Bill Wagner suspected that the club’s
coverage might not be adequate and he was right.
The appraisal by GAB Robins revealed that the cost to reproduce
the club’s buildings was higher than their current coverage.
You may contact Bruce Riemann,
Senior Regional Appraiser at GAB Robins, at 800-248-3376 ext. 379
(FL only) or 407-805-0086 ext. 379, for more information about how
their experts can help you prepare for unforeseen events. Remember that when selecting an individual
or firm to work with, look at how long they have been in business
and ask for references. Ask
other clubs for referrals.
Also ask about updates.
Once the original insurance appraisal or Reserve Study is
done, you should be able to obtain updated reports each year for
a fraction of the original fee.