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5 Benefits of Fund Property Coverage

September 14, 2021 Communications Staff

Aerial photo of a school

The Fund has served Texas public schools as a trusted coverage provider since 1974. We maintain the financial strength to be there for our members when they need us. But we believe reliability is a table stake every provider should bring to their relationships with schools. Here are five benefits, beyond paid claims, that we deliver to Fund members with Property coverage.

1. Customized coverage agreement

Because the Fund is a member-owned risk pool, not a traditional insurance carrier, we have the flexibility to customize our Property coverage agreement. These are just a few features of our coverage that meet schools’ needs:

  • We provide blanket coverage, with no scheduled limit or cost on a per-building basis.
  • The Fund has no coinsurance requirement, so members are protected from penalties in the event of a loss.
  • Members’ appraised values are updated annually, which means an Agreed Amount Endorsement is not necessary.
  • Coverage comes with flood, earthquake, crime and employee dishonesty, and terrorism endorsements.

2. Deductible buy-downs

You don’t have to be a certified school risk manager, though we have a few on our team, to understand how climate change impacts property coverage. Here’s the digest version:

  • The earth and its oceans are getting warmer.
  • Rising temperatures fuel Dust Bowl-like droughts, raging wildfires, fatal floods, and record-breaking hurricane seasons.
  • Some fiscally conscious coverage providers have responded by:

1. Pulling out of the property coverage market

2. Raising rates and/or deductibles so high that budget-strapped school districts have to divert funds from other programs

3. Covering the actual cash value of damaged property instead of the replacement cost.

The Fund’s wind/hail deductible buy-down helps our members manage the financial impact of higher deductibles.

A deductible buy-down, sometimes referred to as a buyback deductible, can be an endorsement or a separate policy that reduces the deductible that the covered entity pays in the event of a claim.

3. Equipment breakdown coverage

Fund Property coverage protects more than the roofs, walls, windows, and floors that make up your building envelope. We collaborate with the experts at Hartford Steam Boiler (HSB) to provide equipment breakdown coverage at no additional cost. Coverage includes state-mandated boiler inspections.

Inspections help ensure your boilers operate compliantly and safely. Inadequate water and leaky fuel valves are common causes of boiler meltdowns and explosions. The Texas Department of Licensing and Regulation says excessive pressure typically drives the most lethal boiler accidents. Even in small boilers, pressure buildup has shown the power to crumble buildings and endanger lives.

Take advantage of no-cost boiler inspections

  • Request inspections online, or contact HSB at NSCInsp_Hotline@hsb.com or 800.333.4677.
  • Receive notice of inspections from HSB before certificate expiration.
  • Get recommendations for repairs or required upgrades.

4. Hail alerts

A vibrant culture, robust job market, and relatively reasonable cost of living are just a few factors that have driven Texas’ population up 16.4 percent since 2010, second only to Utah. But not everything is sunny in the Lone Star State.

Texas has earned a reputation as the hail capital of the country. Between 2017 and 2019, Texans filed an eye-popping 637,977 hail claims. Colorado ranked a distant second with 380,066.

Hail also happens to be the costliest cause of claims filed by Fund members with Property coverage. The impact isn’t limited to facilities and equipment. Our Auto claim adjusters handled their share of hail claims this spring, as well.

It’s not always obvious when you've suffered hail damage. That's why the Fund receives hail alerts. The reports detail the size of hail, the location, and the time of the event, along with a list of your potentially damaged properties. Our team notifies you and explains what to do next, depending on the size of the reported hail.

If you work with us to identify and address damage early, you can head off costly repairs or replacements down the line. That’s why the Fund recommends you make regularly scheduled roof inspections part of your preventative maintenance plan.

5. Property appraisal services

The Fund needs an up-to-date, accurately valued inventory of your property to ensure we provide the right coverage. To that end, we provide property and contents valuation services and products at no additional charge.

Benefits include a comprehensive property appraisal for first-year Property program participants. Building values are updated annually, and physical inspections are conducted every four years.

We also cut your administrative burdens by empowering you to manage your property inventory online. Visit the website to change your property schedules, access inspection reports, and view total insured value data.

We cover schools inside and out

Whether a burst pipe floods the gymnasium or a tornado tears the roof off the high school, we maintain the financial strength, resources, and claim-handling expertise to get you back in business quickly and cost-effectively. Contact your regionally based TASB marketing consultant to explore the value of membership.

Tagged: coverage, "Fund Basics", "Fund membership"