By Bobbi Larsen
Before you know, it will be the last week of school and students will be completing final exams. Summer break, or the months of May through August, is a high risk period of time for chapter houses. It is important you take the time to properly prepare your chapter house for the summer break period.
The leading risks to a chapter facility during the summer break period are:
- Fire
- Vandalism
- Theft
- Water damage
- Wind
- Hail
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A single sprinkler head can discharge 20-40 gallons of water per minute. While accidental activation is rare, Willis North America has seen multiple damage claims in which a sprinkler head activated by being hit by a football or similar object or from hanging items from the sprinkler head.
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Making sure you select the right contractor can save you down the road.
By Mick McGill
The roles and responsibilities of ownership and property management of a fraternity/sorority house can be complex and time consuming. A facility housing a large number of undergraduate students requires a hands-on approach and constant monitoring to ensure the facility remains a source of pride for the organization and also provides a safe living environment for its tenants. Owners and Housing Corporations are constantly identifying and making decisions as to what construction projects are warranted to ensure the facility remains in good physical condition. This process results in contracting with local construction companies to complete the applicable work.
When entering into agreements with contractors or other entities, it is very important to be wary of the terms and conditions associated Read more…
Recently I sat down to review the insurance coverage by house corporations that have loans with The Norwich Housing Corporation. I found that several corporations had low or no Business Income (BI) and Extra Expense Coverage (EE). So I started to wonder how many other Theta Chi house corporations don’t have adequate BI and EE coverage. If something happens to the chapter house and the house corporation has a mortgage, how is the corporation going to pay the monthly mortgage? What are they going to do to house the brothers living in the house?
To get a better understanding of this coverage, I contacted our friends at Willis North America. As always, they were able to provide me some great information on this issue.
Business Income (BI) and Extra Expense (EE) is an additional coverage available through most insurance programs. While it is not required, it is a recommended coverage and all chapters owning or leasing a property should purchase it. Business Income (BI) and Extra Expense (EE) coverage protects a chapter against a financial loss in the event a chapter house becomes uninhabitable and the income generated by its tenants is lost. It also protects against increased expenses to keep your chapter operating without interruption. A covered loss must be the cause for the loss of income or increased expense in order to be covered.
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Many House Corporation Boards employ House Directors on a contractual basis: the House Director is paid a defined sum each month for the term of the contract. In other words, the House Director is an Independent Contractor.
There are pros and cons relating to this type of arrangement. The pros are simple: the HouseCorporation does not need to withhold payroll taxes or purchase workers compensation insurance for this person. The cons are more complex. The Contract House Director is not afforded liability insurance protection under the Fraternity’s insurance program. This results in an uninsurable exposure for the Contract House Director. As an example, if the Contract House Director’s negligence resulted in a fire to the chapter house, the property insurance company would pay for the damages and potentially pursue subrogation against the Contract House Director as the assumption is that this person carriers Liability Insurance. In addition, the Contract House Director could be named in a lawsuit by a member, candidate for membership or other 3rd party alleging the negligence of the Contract House Director resulted in some sort of bodily injury, property damage or personal injury to them. In this scenario, the Contract House Director would NOT be covered under the Fraternity’s Liability Insurance program. Thus, s/he becomes personally liable for hiring an attorney to answer the lawsuit and defend her/him as well as pay any judgment awarded by a jury or court. Even if the lawsuit had no legitimate basis, the Contract House Director would incur the cost to retain an attorney to answer the complaint and defend her/him at least until which time s/he is removed as a defendant in the matter.
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PREPARING A CHAPTER HOUSE FOR EXTREMELY COLD TEMPERATURES
With temperatures expected to be at or below freezing for much of the country this week, it is imperative you take the time to properly prepare your chapter house for the cold weather. It is especially important for those facilities just re-opening for the new term.
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During the winter of 2008-2009 (November – January), 49 claims were reported under the Fraternal Property Management Association (FPMA) property insurance policy resulting in over $3,000,000 in claim payments. There are three leading risks to a chapter facility during holiday breaks:
- Water freeze
- Fire
- Vandalism and theft
In many cases, the extent of the damage was exacerbated resulting from little to no oversight of the facility over the extended winter break. In one case, a facility was not inspected regularly during the break period. A passerby noticed water pouring out the front door from a leak on the second floor. Damage totaled more than $300,000 and would likely have been significantly less had the problem been identified earlier. In another case, the heat was turned off in a chapter house located in a part of the country where the weather does not typically dip below the freezing mark. Unfortunately for this chapter, the weather became unusually cold, leading to frozen pipes and water damage. There was no insurance coverage for this claim, as the owners failed to maintain heat in the building.
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As most of you are aware, the issue of whether a student housing facility is sprinkled is being addressed more and more by City, County and University officials. Without question, a facility that is sprinkled presents a much safer environment for the tenants. It also minimizes the probability that a major fire will occur causing extensive damage to the facility. While this is the case, more and more City and County Ordinances are mandating the installation or retrofitting of fire sprinkler systems. While we all recognize the value of a fire sprinkler system, the cost associated with the installation and retrofitting of it places a financial burden on the House Corporation and Chapter. With this in mind, we have developed a Fire Sprinkler Fact sheet that is intended to provide basic information House Corporations and Chapters should be aware of when going through the planning stage to prepare for the installation or retrofitting of a fire sprinkler system.
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Provided by Willis North America (FRMT News (Vol. 25;Fall Semester 2009)
Concern about the H1N1 flu is increasing as students head back to campus. To date, the highest number of confirmed cases of the flu have been among people 5-24 years old, and colleges may act as a “point of spread.” Additionally, the CDC recommends that those who are of higher risk for complications of this flu get the vaccine when it first becomes available. The recommendation includes most traditionally aged college students. Given these facts, the following suggestions may be helpful to those organizations who provide gathering spaces and housing for fraternity and sorority chapters.
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Provided by Willis North America; FRMT News (Vol 25; Fall Semester 2009)
Thousands of people are injured each year as a result of slips, trips and falls. These types of injuries can result in great economical loss, cause a great deal of physical pain and suffering and occasionally result in death. In most cases, injuries resulting from slips, trips and falls can be prevented by implementing inexpensive and common sense safeguards. Attempting to minimize the probability that these types of injuries will occur involve three basic fundamental steps:
- Understand how slip, trip and fall accidents happen
- Identify the physical hazards that exist
- Eliminate or minimize hazards contributing to slips, trips & falls
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By Bobbi Larsen
