Technical Update vol. 25 no. 14 - Don’t Jeopardize your CAPP Property Coverage

Twice a year, CTSI sends out your county’s property list with addresses and values. Next month, you will be receiving the most up-to-date list as part of your county’s CAPP renewal packet.

If you have any buildings that are not on your list of properties, include a Building Add/Delete Form with your renewal, and we will add them to your county’s list of properties.

Failure to report any buildings can compromise your insurance coverage. If a building is not on the CTSI county property list and damage occurs, you may not be entitled to CAPP coverage. 

Adding a Building to CAPP Coverage

Whenever the county acquires a new building, regardless of value, it must be reported to CTSI within 90 days in order for coverage to apply.

There is no charge for adding buildings valued under $5 million mid-term. There is a pro-rated charge for adding buildings over $5 million any time during the policy period. There is no credit for deleting buildings mid-term.

The Building Add/Delete Form is available at www.ctsi.org or by contacting Brenda Hostetler, bhostetler@ctsi.org.

Builder’s Risk Insurance

Builder’s risk insurance is property insurance that provides coverage on buildings or structures while they are under construction. It may also cover foundations, fixtures, machinery, and equipment used to service the building and the materials and supplies used in the course of construction.

CAPP member counties have up to $5 million in builder’s risk coverage for renovations and repairs made by the Insured at any location (including new locations with total contract cost under $5 million).

For builder’s risk projects over $5 million, CAPP does not provide any coverage. Member counties have the following two options: 1) The member can have the contractor secure builder’s risk on the entire project; or 2) The member can obtain a standalone builder’s risk policy through the pool’s insurance broker for the entire project. 

Regardless of who provides the builder’s risk coverage, counties need to submit a CAPP Builder’s Risk Notification Form. The form is available at www.ctsi.org or by contacting Brenda Hostetler, bhostetler@ctsi.org.

What This Means for Counties

Your CAPP property coverage can be compromised if the county does not list all county building locations with addresses or follow the builder’s risk procedures. This is very important as excess insurance carriers are more demanding of that information to ensure coverage. For more information, contact CTSI at (303) 861 0507.

A PDF of this Technical Update is available here.