January 30, 2023 | CSD Team

Plus other storm-related coverages to ease members’ budgets in 2023

Colorado is no stranger to wind and hail.

Now that the third consecutive year of La Nina is a 91% possibility, which typically means a more frequent chance of strong winds, not to mention being in “Hail Alley;” it is more important than ever to make sure you’re covered for wind and hail damage.

Luckily, the CSD Pool can help with this. The Property Coverage Form includes the perils of wind and hail so in the event of a loss caused by one of these perils, your scheduled property may be covered subject to the following deductibles:

• For districts with total scheduled property values up to $25M, the deductible will be 2% per occurrence of the value of the covered damaged property and applicable business income at the time the loss occurs, subject to $5,000 minimum and $50,000 maximum per occurrence, unless a higher deductible is scheduled at the damaged location.
• For districts whose total scheduled property values are over $25M, the deductible will be 2% per occurrence of the value of the covered damaged property and applicable business income at the time the loss occurs, subject to $5,000 minimum and $75,000 maximum per occurrence, unless a higher deductible is scheduled at the damaged location.

Deductible Buyback Endorsement

We understand that for some districts the deductible is a higher amount than you would like to retain, so we have a wind and hail deductible buyback endorsement available for purchase.
This endorsement reduces the deductible to a flat $5,000 per occurrence unless a higher deductible is scheduled at the damaged location.

For locations that receive a surcharge for wind and/or hail damage on Property coverage, the charge for the buyback endorsement is 30% applied to property contributions. This excludes contributions for values scheduled as contents.

For locations where the wind/hail damage surcharge does not apply, the charge for the buyback is 10% applied to property contributions, excluding contributions for values scheduled as contents.

Coverages Tailored to Help Cover Post-Storm

If a severe weather event causes damage to a member’s property, coverage may be available to repair or replace your scheduled buildings and structures.

Below, we’ll talk about a few features under the CSD Pool Property Coverage document which will reimburse expenses paid to remove debris or replace or upgrade a damaged roof.

We’ll even discuss how we can share in the cost to upgrade your building with green materials, assisting your district to have a more energy efficient building as well as help conserve natural resources, and avoid toxic or other polluting emissions to minimize environmental impact.

As your risk management partner, the CSD Pool is continually looking out for your organization, providing you with the coverage you need.

Debris Removal

Severe weather with high velocity winds often causes destruction to buildings and other property, leaving behind debris which can be large and difficult to remove. Depending on the type of equipment needed for the removal and the amount of debris left behind, clean-up costs may be substantial.

Under the CSD Pool’s Property Coverage, we will pay expenses incurred by a member to remove covered property debris on a scheduled location, when reported within 180 days of the date of loss.

Coverage for such expenses is limited to 25% of the property loss payment plus the applicable deductible amount.

Debris from other properties that ends up on your own property after a windstorm can also cause headaches in the form of additional clean-up costs. The good news?

We also pay expenses incurred and reported within 180 days of the loss and up to a sublimit of $10,000-to remove the debris of others on a member’s scheduled premises in cases when your building has also sustained damage from a weather event.

Wind and Hail Roof Upgrade

Thunderstorms with hail and high winds are frequent culprits of serious damage to roofs and other structures, often causing the need for a full replacement to repair the damage.

Over the years, roofing materials have improved, becoming more durable to withstand the impact of hail or wind; however, the costs for the improved materials have also increased, depending on its classification.

In 1996, a national standard was set by the Underwriters Laboratories to assign roofing material a durability rating, ranging from class 1 through class 4, based on impact testing. Class 4 roofing material has the highest impact resistance, minimizing roof damage during a severe weather event.

When a member has covered damage to at least 50% of the total roof area of a scheduled building or structure, the CSD Pool’s Property Coverage, with the selection of replacement cost valuation, will cover the cost to repair or replace the damage, subject to the applicable limit and wind and hail deductible.

At that point, members have the option to upgrade their roofing material to a product with a higher classification for impact-resistance. Although the cost is higher, the CSD Pool will contribute 50% of the additional cost for the more durable material not to exceed $250,000 if a member decides to upgrade.

An investment in higher rated roofing material is an effective way to mitigate future losses. These materials pay for themselves over the long term because of reduced maintenance costs and by eliminating the need for premature replacements.

Even if you are not planning to upgrade your roof anytime soon, if your district has buildings with roofs older than 10 years, it is important to begin budgeting for a replacement.
Old roofs are more susceptible to storm and hail damage as well as problems resulting from simple wear-and-tear that accumulates over time.

Getting a line-item in your budget for the following year can protect you from the unexpected; and if your roof ends up lasting another year without needing replacement – all the better.

Green Construction Upgrade

The use of sustainable building materials or “green” materials is at the forefront of many people’s minds as they are better for the environment due to energy efficiency, sustainability, and reduced maintenance costs.

“Green” building materials such as solar equipment and high-performance windows improve energy efficiency, while materials that emit few or no carcinogens will maintain good indoor air quality. However, these sustainable materials come with an increase in cost.

When a member sustains covered damage to a scheduled building or structure caused by a covered peril, the CSD Pool’s Property Coverage, with the selection of replacement cost valuation, will cover the cost to repair or replace the damage, subject to the applicable limit and deductible.

A great option available to members is to upgrade the materials used for the building’s repair with products recognized as green by a Green standards-setter, an organization or governmental agency which produces and maintains guidelines related to green products such as Leadership in Energy and Environmental Design (LEED􀁲), Energy Star, and Green Globes.

If you would like to take advantage of these upgrades, the additional costs would be shared equally between the CSD Pool and the member, each contributing 50%, and the amount would be the least of the following:

1. Additional costs to repair or replace lost or damaged parts of the scheduled building or structure; or
2. An additional 25% of the building coverage limit in the Statement of Values; or
3. $250,000.

If you would like to learn more about the property form, available deductibles, or coverage options, please contact us at pc@csdpool.org.