The Insurance Prof: If your facility is destroyed, could you rebuild?

Your insurance settlement is based on the data you’ve provided to your insurer. Is it complete? Accurate?

Your building valuation is the key factor in determining your insurance payout if your facility is damaged or destroyed.

“A building valuation is the amount for which your building and its contents are insured. ”

This amount is determined by multiple factors, including your building’s size, number of stories and architectural features. A building value is not frozen. If your church expands, then your valuation needs to be updated to reflect this. In addition, market factors such as construction costs will impact your building’s replacement value.

Undervalue is real
Government data and private studies show the vast majority of church and commercial buildings are undervalued for insurance purposes. Why? The cost of rebuilding includes much more than bricks and mortar. Elements beyond the physical structure include:

• Higher costs resulting from updated building codes.

• Expenses related to complying with expanded environmental regulations.

• Increased labor and construction costs.

• Renting a facility while your building is repaired or rebuilt.

• Removing debris.

• And more

An insurance contract that does not account for these and other factors will leave an organization scrambling to survive the loss of its building.

The good news: We can plan ahead to ensure we have the coverage to fully rebuild. That’s where our free eBook comes in. We invite you to download the Church and Nonprofit Facility Valuation Guide and take action.