New York Landmarks Conservancy
Common Bond, Vol. 12, No. 3, page 13
December 1996

Regularly scheduled building maintenance not only reduces capital expenditures over time, but also significantly reduces the risk of disaster. Well―maintained exterior, structural, and drainage systems provide protection against water and wind damage. Security and safety measures protect against theft and injury.

Conversely, a poorly―maintained building presents numerous risks and can be difficult to adequately insure. Loose roofing, cornices, masonry, and ceilings under leaking roofs increase the risk of falling objects while overburdened electrical systems increase the risk of fire. A neglected building on a site littered with stones, bottles, and construction debris invites dangerous conditions, theft, and arson.

St. Mark's Church in-the-Bowery, New York, NY was severly damaged by fire in 1978 Articles in the previous issue of Common Bond (Volume 12/Number 2) focused on fire safety, particularly during construction projects. This article and checklist addresses the general administrative aspects of property insurance and loss prevention.

Review the checklist and ask yourself these questions:

Is your insurance coverage adequate? If you've completed restoration of stained glass windows, an organ, decorative painting, or other artwork, its value and replacement cost are higher than before and should be reflected in your policy.

Do you have a committee responsible for safety inspections that can make recommendations to reduce risks? Are your site, buildings, and contents documented in case of damage or loss?

Are risks associated with all of the activities that take place in your facility covered by your policy?

Do you have a committee responsible for safety inspections and recommending improvements to reduce risks? Are your site, buildings, and contents adequately documented in case of damage or loss?

Are risks associated with all of the activities that take place in your facility covered by your policy?

Settling Large Claims

If a fire or other catastrophe occurs, your insurance broker will arrange for a claims adjustor to represent the insurance company. You will also want to consider retaining a public adjustor to represent your interests in negotiating a settlement.

A good public adjustor is like a good accountant or lawyer: thorough in helping the client document losses, expert in interpreting insurance law and policies, and aggressive in negotiating on behalf of the client and securing prompt payments. You can find a public adjustor through recommendations from your broker, your Diocese or other regional association, and building professionals experienced in post―disaster management. Fees are based on a percentage of the settlement which gives the public adjustor an incentive to win the highest amount; your broker can help you negotiate a contract.

Ed Kamper, a restoration project director involved with post―disaster planning at the Church of the Holy Apostles and St. Philip's Episcopal Church in Manhattan, offers a caveat: have a preservation professional work on your behalf to ensure that estimates of restoration and replacement costs are realistic. Estimators working for claims adjustors tend to follow building industry norms which do not necessarily address special costs associated with historic architectural features, furnishings, and artwork. This underscores the importance of keeping up―to―date inventories, documentation, and appraisals in case disaster strikes.

Property Insurance Checklist

The leading causes of property losses in houses of worship are crime―related (vandalism, burglary, arson, etc.), fire, and wind or hail, according to a survey by the Atlantic Companies, a leading insurer of churches. Water damage from plumbing, heating, and air conditioning, and personal injuries from falls, trips, and slips are also significant causes. Many insurance companies provide detailed guidance to policyholders in loss prevention, including publications, self―inspection checklists, and inspections by loss control specialists. Independent safety consultants can also be retained.

The following points are among the insurance basics every congregation should follow:

Obtain a good insurance broker. Appoint an individual from the congregation as the insurance specialist who will be responsible for understanding policies, keeping them up―to―date, and implementing risk reduction measures. Perform an annual review of the types and amounts of insurance the congregation holds, including property, boiler and machinery, general liability, pastoral professional liability, directors and officers liability, crime, automobile, umbrella, workers' compensation, and separate homeowner/tenant policies for clergy and resident staff Form an in―house Safety Committee to conduct at least two inspections per year (summer and winter) that submits recommendations. Ask your insurer for inspection guidelines. Schedule inspections (loss control or risk reduction surveys) and evaluations by your insurer every two to three years.

Safety Inspection Highlights

Summer and winter safety inspections should examine the condition of the following components of the property:

building maintenance including the condition of the exterior, structure, and perimeter drainage system

heating equipment

lighting and electrical equipment

kitchen equipment

fire extinguishers

lightning protection

automatic sprinklers

automatic fire detection devices

storage and disposal of flammable materials

security system including lighting, locks, and surveillance equipment

storage and disposal of flammable materials

public liability exposures including vehicles and drivers, contractors, floors and walkways, exits and fire escapes, and asbestos

Your Property Inventory

Keep your property inventory and archives up―to―date and store records and negatives off―site in a secure, fireproof location. Include as―built drawings and photographs of the exterior and interior of all buildings and grounds, and update records after restoration and alterations descriptions, photographs, and appraisals of fine arts and decorative arts (paintings, sculpture, metalwork, textiles, etc.), stained glass windows, libraries, furnishings, musical instruments, and other valuable items inventories of equipment and supplies back―up disks of important computer files, such as databases, financial data, property inventories, and other documents records of safety inspections, recommendations, and implementation inventories of tenants' property.