We provide the broadest protections to ease our members’ worries. One example is on the property form. Property losses may occur as a result of fire, wind, vandalism, floods, or other causes of loss. When they do, knowing your entity is covered matters.
Two ways our property coverage sets us apart are blanket and flood coverage.
Blanket Coverage
VRSA provides blanket property coverage. What does that mean, exactly?
It means that your entity is covered for the total limit of all scheduled buildings, contents, and property in the open, as opposed to separate limits.
For example, an entity with five buildings scheduled for $1 million each experiences a fire that destroys one building. The cost to replace that one building is $1.5 million. With blanket coverage, the policy limit is $5 million.
Therefore, your entity would be covered for the full cost to replace. Without blanket coverage, your entity would be responsible for the $500,000 shortfall.
Unlike other pools, VRSA provides blanket property coverage to all members.
While blanket coverage is essential in protecting your entity’s property, it also stresses the importance of accurately valuing your entity’s buildings, contents, and property in the open. Our members benefit from free, independent, licensed appraisals for all locations valued at more than $1 million on a rotating five-year basis. On years without a physical appraisal, VRSA increases property values yearly based on inflationary standards. This helps ensure adequate blanket values.
Flood Coverage
VRSA members with property coverage also receive flood coverage for flood zones B, C, and X, with a limit of $1 million with a standard $25,000 deductible. Higher limits are available.
For property in flood zones A or V, coverage can be placed outside through our brokered services. Often, this starts with coverage through the National Flood Insurance Program (NFIP).
Important facts about the NFIP:
- Flood zones may change. If a notice is received about flood zone changes in your area, please contact your coverage specialist to discuss.
- The Code of Virginia § 15.2-976, requires localities to provide property owners with written notification of Federal Emergency Management Agency flood map changes and information on how to contact the NFIP. This notice should be mailed to the property owner’s last known address based on real estate tax records.
- The NFIP requires a 30-day waiting period once you request coverage to be bound and payment submitted.
- The NFIP policy only covers one building or structure.
- The NFIP maximum available building limit is $500,000. Excess coverage may be available.
- The NFIP requires buildings/structures to have four walls and be above ground.
- The NFIP does not cover underground equipment and contents.
- The NFIP maximum limit for contents is $500,000. This coverage is limited for items in the basement.
For more information, see the NFIP Summary of Coverage for Commercial Property here.
We are committed to providing protections that are in the interest of our members. For more information on this and other coverage advantages, contact your VRSA coverage specialist at 800-963-6800.