(Club Managers Association of America)

Golf Club Association Newsletter



Last month, our advertiser GAB Robins North America, Inc., told us about Insurance Appraisals.  This month they will explain how a having a Reserve Study prepared can help you better manage your business’s resources.

You learned last month how a catastrophic loss can be devastating if your insurance coverage is inadequate due to an underestimate of your property’s reproduction costs. A less dramatic, yet just as serious shortfall can occur when a major maintenance item hits and there are inadequate funds in the budget to handle it.  Yet, this is a disaster that you can also avoid through good planning and with the help of the experts at GAB Robins.

“I have found that many properties budget for maintenance and repair expenses based on past experience,” says Stephen F. Brubaker, Reserve Study Specialist at GAB Robins. “This is not always the best approach.” While no one can foresee the future, a good Reserve Study can prepare you to meet most maintenance and repair expenses without blowing the budget.

In addition to calculating insurance valuations, the appraisers at GAB Robins are experts at preparing a thorough Reserve Study analysis for your property.  In its simplest form, a Reserve Study is a list of common maintenance items, when these repair/replacements are anticipated and an estimate of their cost.  A professionally prepared Reserve Study is much more than that.  It is a complete financial plan.  In addition to projecting repair costs, a Reserve Study should accurately project the remaining useful life of each component selected by the client to be included in the study and estimate which year each maintenance or repair item will be needed.  A Reserve Study should also calculate the amount of annual contributions required to be added to existing reserve funds to ensure adequate capital is available to meet each expense item in the future. 

You may contact Mr. Brubaker, 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 ongoing maintenance and repair items.  Since the appraisers at GAB Robins are experienced in both insurance appraisal and reserve studies, they can prepare both reports at the same time with one site inspection and at a savings over the cost of two individual reports.  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.