Property Banding Explained

Property Banding Explained

Introduction

One of the ten insurance policies that Scouts Queensland holds is Industrial Special Risk Insurance (ISR). This policy covers property and equipment for damage and loss based on figures provided through the Annual Property Return. Combined with the Public Liability Policy, these two polices make up over 80% of all insurance costs. Insurance invoices are sent in April of each year and is a major expense for all formations. 
Scouts Queensland uses a Property Banding Model, for evaluating the insured value of our properties; 

But what does Property Banding mean?
The purpose of this guide is to explain property banding in simple terms, so that formation leaders can understand how this applies to their group. 

What is Property Banding?

  
The principal behind Property Banding is that while each site and Scout Hall is different, in the event of a total loss, a modern style Scout Hall would be built rather than a like for like replacement. 
The banding model has been developed, considering what a Scout Group may need, not necessarily what they currently have.

The design and layout are based on low cost, low maintenance construction methods and building finishes, such as steel portal frame design and Colourbond external cladding.
  

Banding Levels

Scouts Queensland maintains construction costs against the main banding levels, which are then reviewed and updated annually to ensure they meet current market conditions
QBSI Section 5.6.8.1. includes the current banding values. A summary description of each banding level is listed below:

Band 1: - This banding level is used when a building or structure does not fit into a standard plan, this will often be a campsite, activity centre, a significant Scout Den, or a site like the Branch Support Offices, et This level requires a standalone valuation, at least once every three years, with costs paid by the formation

Band 2: - Large sized conventional Scout dens up to 400m2, Conventional steel frame, steel cladding, internal wall linings, multipurpose space, full kitchen, meeting room/s, storage.

Band 3:- Medium size conventional Scout dens up to 220m2, Convention steel frame, steel cladding, internal wall linings, multipurpose space, kitchenette, single meeting room, storage.

Band 4:- Small conventional Scouts den up to 150m2, Convention steel frame, steel cladding, basic fit out, minimal internal linings. Modelled off standard shed, Kitchenette

Band 5:- Removal and rehabilitation only. This banding level would be used only when a facility is unused or surplus to need. In the event of a total loss the site would clean up and nothing rebuilt.

Band 6:- Council / Landowner insured. In some circumstances landowners will provide building insurance. To qualify for Band 6, this must be explicitly documented in the lease or licence documentation. If not explicitly documented then the formation must select an alternative appropriate band.

Assessing Banding Levels

Each year formation leaders are asked to validate their banding level through the Annual Property Return. 
When considering if the current banding level is appropriate for their facility, formation leaders are encouraged to consider the current and future needs of their formation. This may be very different from the size and configuration of their current facility. 

For example:- A Scout group in a small den <150m2, with strong growth numbers in a growth corridor; they may want to consider a higher banding level

Alternatively:- A small group in an aging suburb, with declining membership and a large facility may consider a lower banding level.
A formation leader may increase their banding level at any time, without explanation.
However, an explanation is required for any reduction in property value and is subject to approval by the Chief Commissioner (see QBSI Section 5.6.8.1.). A desire to reduce overall costs is not a reasonable argument to reduce insurance coverage.

Should you need further advice on what banding level is appropriate for your facility please contact facilities@scoutsqld.com.au

What happens when you make a claim?

Depending on the extent of damage, the insurance company will:
  1. In the event of a total loss pay out the full agreed banding value. 
  2. For property damage or a partial loss, the insurance company may pay up to agreed banding value. This may be subject to a third-party assessment to confirm the exact value of the payout. 
The insurance payout, with any additional grant funds or other contributions will then become the construction budget, held by the Branch Support Office. The reconstruction project using the construction budget will be managed through the Branch Support Office, in collaboration with formation leaders. 

Having the correct banding level is essential for ensuring, that in the event of a total loss an appropriate facility can be rebuilt. 
   

For a full breakdown of the Scouts Queensland insurance program please see QBSI 5.6 Insurance


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