Maintenance and Insurance

For months the teaching staff had noticed water damage signs on the ceiling of one of their classrooms. The caretaker tried to locate the source of the problem and realized that the 20-year-old roof had cracks causing a small leak every time it rained. The school board postponed the repairs for financial reasons as they had to deal with other ‘more urgent’ matters. As time went by, and after heavy rains in that region, the ceiling became increasingly wetter until finally, both ceiling and part of the roof collapsed.

The first reaction is to file a claim on their property insurance. Imagine the school headteacher’s disappointment when he learns that the insurance is not going to pay for the roof and ceiling repairs. A school that was already struggling financially ends up with a costly bill to pay.

In this hypothetical scenario, the property insurance could not respond due to the cause of the damage being an exclusion. Damages caused by lack of maintenance are excluded under the policy. Hence the importance of keeping your buildings and equipment in good condition.
 
The secret of landscapes isn't creation...It's maintenance. — Michael Dolan[1] 

The concept expressed by Michael Dolan’s quote can be applied to so many areas of our lives, whether it is our health, relationships, or properties. Big problems are often caused by small preventable oversights. With regards to property, we usually act when something goes wrong or breaks down. We tend to react when damages occur, which is good, but is it enough? Is there a better way?

There are situations where the reactive approach is necessary – equipment that fails, a light bulb that goes out, a battery that discharges, etc. However, whenever possible preventive maintenance is recommended to establish a standard for the breakdowns of an asset. We can follow statistics about the expected operation of the equipment or the lifespan of an asset.

Let us consider roofs as an example. Several different factors come into play when assessing a roof’s lifespan. These include the angle (whether it is a flat or pitched roof) and the material used (clay or concrete roof tiles, slates, fiber cement slates, etc.). We can determine how long a roof should last; however, it may be possible to increase that time using a preventive maintenance plan.

Preventative Maintenance

Whatever type of roof or material used, the principle of preventative maintenance, can be applied. In fact, it can be used not only for roofs but for buildings or equipment alike:

• Inspect. Have a professional perform a thorough inspection of the interior as well as the exterior of a building.  It will allow you to detect any concerns such as cracks, deterioration, exposed felts, mold, soft spots, etc. Inspect gutters, sealants, and roof penetrations such as pipes or other components that protrude through the roof surface.
• Clean and Clear. Keep your building free from overgrown shrubs and bushes that could cause humidity issues. Remove all debris and clear drains. Blocked drains may cause ponding and consequently leaks or structural damage.
• Repair or replace as required. Repairing the small defects before they become significant issues may save more costly expenses in the future. It is possible to stop leaks before they even start!

Preventative maintenance requires planning throughout the year. Why not organize a maintenance checklist based on the seasons? Four times a year, schedule a ‘Seasonal Maintenance Day’ where you and your team will inspect, clean, and repair.

Adventist Risk Management (ARM) has prepared maintenance forms that are organized by season. Each one has major categories like “exterior” and “interior maintenance,” including equipment.   They help you identify additional risks, exposure, and maintenance issues specific to each season of the year. Check this link for more information: AdventistRisk.org

Spreading the load

Consider putting money aside regularly to replace or upgrade equipment when needed. Work through your church treasurer or finance team and board to set up a fund so expenses related to maintenance will be met promptly.

Having a fund will allow you to replace, for example, the appliances in your church kitchen as they reach the end of their lifespan. You can also plan for maintenance jobs such as painting. Plan to paint one or two rooms every year, depending on the size of your building. This way the building will be kept clean and in good condition throughout the years, and you will be spreading the costs and the workload.

We are here for you

Adventist Risk Management’s mission is to protect your ministries and the assets of the Seventh-day Adventist Church. A good maintenance plan will help avoid losses but may not eliminate the possibility of damage or breakage to your property. Should a covered loss occur, ARM is here for you and will pay for the expenses incurred.
 
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