The SC Municipal Insurance and Risk Financing Fund works with HCA Asset Management to appraise buildings each year. Adequate valuation and property asset classification are very important when insuring buildings. SCMIRF assigns different rates for different types of property. It is important to select the correct classification when adding property to insurance schedules.
The term “inland marine” is an insurance term used to distinguish from ocean marine. Inland marine property, or equipment, is simply “property that moves around.” In general, SCMIRF building and contents coverage insures property within 1,000 feet of a building. Property that moves around and can be located more than 1,000 feet away is referred to as “equipment’ and added to the inland marine schedule.
Factors to consider when determining if an asset is a building or inland marine item
If an item has at least two of the following, it should be classified as a building:
- Structural walls and roof covering
- Slab
- Building services (electric, HVAC and plumbing)
- Some form of foundation
- Some form of human occupancy (even if temporary)
- Material value
Fencing attached to a building is covered as part of the building. All other fencing must be scheduled as inland marine property.
This would be considered a building:
Items that are typically classified as inland marine:
- Fencing and gates (all materials)
- Guardrails and bollards
- Retaining walls
- Signage
- Boardwalks and pedestrian bridges
- Ballfield lighting and yard lighting
- Scoreboards
- Playground structures and equipment
- Movable seating and bleachers
- Goals – football, soccer, etc.
- Small radio towers
- Synthetic fields and surfaces – football, soccer, baseball and tennis
This would not be considered a building:
Scheduling assets properly will result in asset protection and a desirable claims processing experience in the event of a loss. For more information on asset classification, contact Robert Collins, underwriting manager, at rcollins@masc.sc.