One Northwest library director recently asked our office about how other libraries determine the right amount of insurance to carry on the building's contents. Knowing that many libraries use the BOWKER ANNUAL to help with average book prices in various categories...but what about the rest of the library's furniture and fixtures?
A good question, indeed! So I turned to actual practitioners out there: starting with our group of back-up reference libraries, along with our Advisory Council. Just click on "comments" to read several thoughtful answers from your colleagues in Northwest Iowa libraries.
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6 comments:
Sandi @ Laurens answered:
In response to the insurance question, I just read Joyce's answer to the inventory process for determining insurance. Great advice, horrible job! (I found out that for one 36" double sided 3-shelf oak bookcase, cost $800 delivered to Laurens.)
Never assume anything with insurance companies. The city probably carries replacement cost on the library building, but you need to know if you have replacement on the contents. If you do have replacement on contents, must carry a 75% coverage in order to be replaced at current prices. For example, a $2,000 computer must be covered for $1500 (75% of 2000) to get 100% replacement. If not, even with replacement, you only get the percentage covered. If the computer was only covered for 66%, then you would only received 66% of the replacement cost.
Confusing, but true according to my agent.
Any new purchases like equipment, computer, digital cameras, copier, I just call the agent and tell him to make sure it is covered. Then as Joyce says, really need to do a physical inventory periodically. Typically most insurance policies are reviewed every three years.
Lightning hit one of our air conditioners last week and "fried" all the wires. I learned that air conditioners are part of the building and is covered with replacement cost, except for the deductible. So keep up with the inventory process and reporting to insurance agent.
Sandi Neary
Laurens Public Library
SANDI @ LAURENS WITH A FOLLOW-UP: I should have indicated yesterday in the insurance reply, that in MOST instances, the 75% coverage rule is in place for replacement costs. Policies can be negotiated with all kinds of "exceptions." Only your "insurance agent" knows for sure!
Another suggestion--I took pictures all around the library to keep in the inventory file and a copy of the file off premises. It is hard to remember everything you have in case of a real disaster.
Sandi Neary
Laurens Public Library
KAY @ SPENCER ANSWERED:
Here at Spencer we update our inventory every year. We also have our inventory listing on Excel and send a copy to city hall for the insurance contract. As we purchase new items like furniture and equipment, we add them to the list along with the price we paid for them. We don't update that price as long as we still own the item. We just delete it from the spreadsheet when we dispose of the item. We handle our materials collections a little differently. Every year we get a count of each collection (books, CDs, DVDs, etc) and then use the Bowker figures to put a replacement cost on the collection. The collection counts come from our automation software reports. Because the collections make up 75% of our inventory cost, we figure that we are keeping reasonably accurate with our valuations. Our computer inventory Excel sheet is separate from the rest of the inventory sheets because I update it more frequently and add several extra columns listing hardware, OS, etc. We never actually count the office supplies because we are constantly purchasing and using them. We just put in an estimate for the total.
Kay Larson
Spencer Public Library
KARLA @ ORANGE CITY ANSWERED:
For our current contents coverage, we were able to use the cost of furnishings for the new building, the ICN equipment costs, the re-used furniture and equipment value, the costs of supplies on hand, and the collection value based on average prices.
Since we are included under the city's umbrella policy, they actually determine the details. Before the building project, someone from the city or the insurance company had estimated values. The last time someone emailed and asked an insurance question, I asked our agent for a breakdown of our coverage. They were close on furniture and equipment, but about one million dollars short on the replacement costs of our collection!
Karla Chase
Orange City Public Library
JOYCE @ DENISON ANSWERED:
We just completed a physical inventory of our facility. We'll try to update this every five years. The last one was done in 1998, and there had been many changes.
It is a time consuming task.
First we counted everything. Fortunately we had the old inventory on Excel so we could start with it.
Once the counting was done, I used websites to obtain replacement values for the furnishings, computers, etc. I used Demco for furnishings and library supplies, Quill for office furniture and equipment, and Dell for computers and printers. Demco and Quill are easy to search.
For recent purchases I used the actual cost.
I set up an Excel database and included a column in which I indicated the source of my replacement cost (Demco, Quill, etc; Actual; or in some cases, Estimated, especially for antiques and historical items.)
I also had a column for classification: Furnishings, Equipment, Technology, Historical or Supplies.
We found that it was easier to set up "zones" in the library for the physical counting of the items. Then when it is time to count everythingt again, we can sort the items by zone and assign a zone to a person. So another column for the location zone.
I used Bowker & Bowker for average cost of materials (thanks, Bonnie, for the info.)
Finally, I totaled the columns and created a summary of the various classifications, and gave a copy of the summary along with a copy of the itemized list to the City Clerk and to the insurance agent.
I was astonished at the replacement cost for our library's contents!
Hope this helps.
Joyce Amdor, Denison
TENA @ MILFORD ANSWERED:
This is a less-than-scientific answer, but I can tell you what we’ve done.
Probably a year ago the City of Milford re-did their insurance (at my prompting, in light of the Sioux Center incident). Our insurance company (and I’m not sure which one that is, actually) told our City Administrator that all he needed was an inventory, or number of each type of item. My circulation system (Concourse – I know you have Athena, but am not sure how they set up their reports) can give a report of the number and type of each item (book-hardcover, periodical, video, etc.) the average copyright date, and the price we paid (not the replacement price, as I made clear to Bryan, that would be much higher especially in older titles). This gives them the number of volumes in our collection and a hefty sum (original purchase price totals) which they know will need to be multiplied to cover current replacement cost. I think that helped them to eyeball the amounts they were covering to be sure it was sufficient. They did not want me to provide any average book price amount for whatever reason…I’m sure every insurance company is different and some must have their own sources.
As far as other items in the building, I simply took an inventory: so many upholstered chairs, so many stacking chairs, so many computers, so many microfilm readers, maps, computer desks, etc.
My City Administrator gave me the amount our contents were insured for at one time. I don’t remember it now, but can get it if you’d like to know that for comparison purposes. He assures me that we are now covered and the amount of coverage we now have is well beyond what was carried before, so there was definitely a need to update.
I hope this is helpful…I’m sure others will have a more technical answer, but I think it’s important to ask your city exactly what information they need and in what format.
Good luck!
Tena Hanson
Director, Milford Memorial Library
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