How to ENsure you are INsured for enough in case of property damage

How does your organization ENsure that you are INsured for the proper replacement cost for your high-value properties? VRSA members benefit from free professional appraisals for all member locations valued at more than $1 million. This service is offered to members purchasing property coverage and includes buildings and contents values.

VRSA Senior Account Executive Lisa Schenk recently attended an appraisal conducted by HCA Asset Management at the Blacksburg VPI Sanitation Authority, where Schenk spoke with Director Michael Vaught.

“If the replacement cost values aren’t correct, the accuracy of rates and thoroughness of coverage will be affected,” said Vaught. “Although we budget for operations and future capital improvement projects, we don’t budget enough to make up a significant difference amount for a loss that we had insured.

Many bond agreements require that replacement cost value should be determined by a recognized appraiser. VRSA contracts with HCA Asset Management to conduct appraisals for members. They generally conduct 80 appraisals each year on property types from sanitation authorities, to jails, museums, schools, historic courthouses, water treatment plants, and property in the open such as at parks, ballfields and community centers.

Schenk also spoke to Bob Dengel with HCA Asset Management.

“The first thing we’ll do is sit down, have an initial meeting, go through the property list sent to us by VRSA,” said Dengel. “We make sure that all the buildings and structures are included, and all the descriptions are accurate. Then we’ll take a quick tour, get familiar with the process, the layout of the plant, answer any questions we may have, and then we’ll come back and look at the blueprints.”

The HCA team takes into consideration the value of members’ time, and after the initial meeting, mostly works independently to conduct the appraisal.

“Once the appraisals are complete, I do a thorough review of the data; I have a checklist from spelling to the values of the building or structure,” said Dengel. “Once that’s completed, there is another level of review – we’ll discuss values and finalize the reports. What we provide to VRSA is not only a detailed report but also summary reports.”

Vaught says the authority is pleased with HCA’s appraisals.

“Not only do they give us a significant peace of mind, but it also provides a savings to the authority,” said Vaught. “This is a service we would have to contract out if it wasn’t provided by VRSA.”

For more information on VRSA’s appraisal services, visit: