Property Program

Oct 2014 10 | Posted by naomi.whatley

GSRMA is a member of the CSAC-EIA property program, one of the largest property insurance programs in the country. The program is not only one of the largest, but provides some of the most comprehensive coverage as well. The program consists of 82 member agencies and over $53 billion in total insurable values (TIV).  GSRMA is one of the 82 members, and currently has over $350 million TIV.  While GSRMA is considered a single agency, each GSRMA member is afforded identical coverage and rights as the large stand-alone members.

GSRMA members are provided coverage for physical damage to real and personal property, vehicles, mobile equipment; all property of an insurable nature can be covered under the program. The coverage is “all-risk” including flood; earthquake coverage is included for many areas, and optional for others. The EIA’s innovative program structure allows it to provide extremely comprehensive coverage and still maintain excellent pricing.  Risk is diversified geographically throughout the State, and numerous separate insurance carries insure “pieces” of the coverage. This reduces the impact of catastrophic losses to the members and the insurers alike.

The program’s success is also dependent on member participation and cooperation. Not only do the members direct the program, they are also responsible for providing detailed, accurate property information to the underwriters. This assures that the pricing and cost allocation is fair and equitable. A major part of this process is the annual data submission when members are tasked with updating their property schedules. Reporting all insured locations with accurate estimated values is vital to maintain the integrity of the entire program.

Real (buildings) and personal (contents) property is covered for replacement cost, which means that there is no deduction for depreciation at the time of loss. The reported values should reflect this. Covered vehicles, on the other hand, are insured on an actual cash value (ACV) basis; which pays the Fair Market Value (used) at the time of loss. Based on this, there is a tendency for members to underestimate the values of their real property and overestimate the values assigned to the insured vehicles. GSRMA members are not expected to be expert appraisers, but should carefully review properties and their values for reasonableness. When values seem too high or low, do not hesitate to contact GSRMA staff for assistance.

The 2013 edition of the GSRMA Annual Report has been distributed to member agencies. This is the seventh annual publication, and like past reports, it presents comprehensive information regarding GSRMA’s organization, history and financial condition. Each year, the report is produced as a resource for members and other interested parties to summarize the past and present and provide an outlook for GSRMA’s future. If you have not received a copy, would like additional copies, or want to share a comment about the report, please contact GSRMA.