Insurance Valuations
In the past three years there have been eight significant losses for the Uniting Church all over $300,000.00. These include Fire (3), Burglary (1), Water Damage (2) and Storm (2). An issue that is critical when events such as these arise is whether the properties were adequately insured. If a building is valued at $500,000 and the nominated
insurance value is $250,000 then insurance would pay just half the cost of any claim (even if the claim is under $250,000). Under Insurance is a serious issue which can lead to financial disaster. As good stewards of God’s resources, we all have an obligation to ensure that properties are properly insured.
NSW Synod Insurance Valuation Scheme
The NSW Synod insures all its property for full replacement; as such it is important that all properties are insured for their full replacement value. The Synod also requires that all properties are professionally valued at least every three years.
Property Services has determined that many congregations have not completed professional valuations in the past three years and many properties may be under insured. For this reason the Synod has launched the Insurance Valuation Scheme. This Scheme aims to reduce the cost of inspections and valuation on the basis of a ‘bulk discount’. In addition to the lower cost of inspections, a set format of reporting will give us information that will enable us to meet your needs more effectively.
We have sent all congregations an invitation to join the Synod in this innovation and trust that the congregations will find the process helpful, simple and cost effective.
Another cost saving innovation that Property Services has introduced, is to provide an option to congregations that allows them to submit certain information about their manses and homes that will then not require a formal valuation. We will use the information to “derive” an appropriate insurance value.
What can you do?
In order to reduce the strain on congregations further we have also developed an Inspection Valuation Sheet for the manses and other domestic homes owned by the church. With this form the congregation will be able to complete the valuation and update it themselves.
