Leander ISD Takes Advantage of Vacant Building Coverage Extension
By Allison Kaminsky
It is no secret that Texas schools are dealing with smaller budgets and a need to cut costs and consolidate resources. One of the ways districts are dealing with budget constraints is to “shutter” otherwise usable buildings to save on operating costs. Though vacant, many of these structures are still useful and, in some cases, brand new buildings that have never been occupied.
Leander ISD is all too familiar with this scenario. The district finished construction on a brand new facility in October that will not open as an elementary campus until August 2012. Typically, facilities such as these are not protected by property coverage after they have been vacant for more than 90 days. However, the TASB Risk Management Fund has found a way to meet the coverage needs for members like Leander ISD that have buildings that would otherwise be in use if not for the current financial situation. 
The Fund Board recently approved a process by which members can obtain coverage for certain “shuttered” buildings with a finite vacancy term. Because extending coverage for these facilities would be a deviation from the standard property coverage 90-day rule, the member first needs to take overt action by submitting a formal written request for coverage using this online form. An agreement to provide coverage is determined by a series of terms and conditions set forth in the request form that must be upheld throughout the term of vacancy.
Leander ISD stands to save over $630,000 at a minimum by not opening the doors to their new elementary school this school year. Saving over $70,000 in utilities alone, shuttering the newly constructed building made sense in the face of tightening budget constraints. After the vacant building coverage enhancement was announced in the September 2011 News & Views, Leander ISD Risk Manager Darla Humes put in a request for the coverage extension.
Not long after receiving the formal request from Humes, a team of TASB staff visited the vacant building for a site tour to determine whether the structure qualified for coverage. During the visit, TASB Loss Prevention, Underwriting, and Claims staff checked the facility for compliance with the terms and conditions.
Upon initial inspection by staff, it was determined that the future Leander ISD elementary school is eligible and being maintained to minimize the risk of damage to the building. The two-story facility has access control and is equipped with an alarm system, interior and exterior security cameras, a fire sprinkler system, and an operational heating and cooling system. In addition to these measures, the district has also agreed to weekly walkthroughs to track facility issues, maintenance of exterior landscaping, and will make the building available for inspection by TASB staff in the future.
The team verbally agreed to provide coverage, contingent upon the district’s continued inspection of the building to ensure the appropriate measures will be taken to preserve and maintain the structure. A locally-maintained log is required to track these frequent and rigorous inspections as part of the terms and conditions. Fund underwriters sent a formal letter of agreement officially extending property coverage to the building in mid-November.
“We’re committed to helping members through these difficult financial times. Providing coverage enhancements such as the vacant building coverage extension is a continuation of our efforts to strive to meet Fund members’ needs. We look forward to working with Leander ISD as they move forward with plans to open their new elementary school,” said Gary Armstrong, senior marketing consultant, TASB Risk Management Services. 
Other Fund members can take advantage of this coverage enhancement. If you are a member of the Fund’s Property program and have a building that you believe meets these standards, complete the request for coverage form located on the Property Resources page on our Web Site. You can also access a sample weekly inspection log for necessary maintenance and loss prevention measures mandated by the terms and conditions of the coverage. A complete list of the terms and conditions can be referenced in the September issue of News & Views or on the request for coverage itself. If you have any questions about whether a structure qualifies, contact your marketing consultant at 800.482.7276.
