(Club Managers Association of America)

Golf Club Association Newsletter



Our 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 prepared.

Every property 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.

Don’t 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.