There are two basic reasons. The Conference Board of Trustees, in order to ensure that all properties are fully insured, has instituted the Conference Insurance Plan. Secondly, and equally important, by insuring all properties at once, significant savings have benefited all churches. If it isn t, it is because now you are receiving full replacement cost insurance, or that you have added property. Finally, every church now has broader coverages and higher liability limits than prior to the program.
Replacement cost is the basis for valuation of property loss.
This means that your damaged or destroyed property will be covered at the full cost of repair or replacement with new property of like kind and quality. We are able to provide such broad coverage in part because the Conference paid to have every single church appraised in 1995 and 1996. This gives our underwriters great confidence in the adequacy of our reported property values, and allows them to provide such excellent coverage. The total replacement cost is what will be paid. Even if your valuation is slightly off, it is added to all the other properties in the Conference to come up with a blanket limit that covers all properties.