TerraBites
A short newsletter of bite-size ideas to chew on for Terrafirma owner-member land trusts, released January, February, May, June, September, October and November.
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Understanding what Terrafirma covers is important to know but equally important is knowing what Terrafirma doesn’t cover. To ensure you can have sufficient insurance protection, we wanted to highlight a few things that Terrafirma doesn’t cover:
- Terrafirma doesn’t cover bodily injuries or property damage suffered by your staff, visitors or others while at any of your properties or when you are out monitoring. That is generally what general liability insurance covers.
- Terrafirma doesn’t cover wrongful management decisions by your board, volunteers or staff, even if that management decision adversely affects your properties’ conservation purposes. That is generally what directors and officers (aka “D&O”) insurance covers.
- Terrafirma doesn’t cover property damage caused by natural disasters or catastrophic events. That is generally what property insurance covers or other special property insurance policies (like flood insurance).
- Having a Conserve-A-Nation® policy through Alliant or any other insurance policy from any other carrier does not include Terrafirma coverage.
- The Land Trust Alliance does not have a policy to cover those organizations that do not enroll in Terrafirma.
And finally, your land trust is only insured by Terrafirma if – and only if – your land trust applies for membership through Terrafirma’s website and meets eligibility requirements.
Looking for insurance that covers these things? Check out this handy guide to common types of insurance coverage.
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We’re here to help! If you have any questions, please let us know. I know that insurance is complicated so please ask questions.
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
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Your land trust may be planning to acquire new conservation interests this spring. Initial inspections can be tricky.
Here are some things to keep in mind when inspecting and investigating properties:
- Compare surveys, plats and maps with on-the-ground findings and photos. Take note of where property boundaries are and any structures and activities (like mowing lines and debris piles) that are occurring near or on the boundary line. In one Terrafirma claim, a fence encroached a couple feet over the property boundary for 60 years unnoticed by the land trust, despite a survey showing the encroachment.
- Bring something to measure areas with distances restrictions. Terrafirma has seen violations of square footage limitations missed by staff, or staff assuming the landowner’s measurements are correct. Land trust staff need to independently confirm measurement restrictions.
- Investigate any lease and license arrangements to understand the arrangement’s duration and renewability, and the parties’ current understanding of the arrangement. A party may still be using the property even though the arrangement ended, which may effectively renew the arrangement. Such continued use potentially opens the door to adverse possession challenges and could result in a loss of legal title or having to acquiesce to activities that may frustrate conservation purposes.
- Don’t assume that a structure or use is permitted merely because it existed the first time you visit a property. Because of the elapsed time between the last inspection and the closing date, and a land trust’s relative unfamiliarity with the new property, landowners or neighbors may make last-minute changes.
We’re here to help! If you have any questions, please let us know.
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
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No one knew if Terrafirma would succeed when it issued its first policies on March 1, 2013. Now, almost ten years later, Terrafirma has helped land trusts defend perpetual land conservation across America. During these past ten years, Terrafirma:
- insured over 10.2 million acres, an increase of almost 4 million acres from 2013;
- grew to 545 land trusts member from 48 U.S. states;
- covered 36,000+ parcels, almost doubling the number of parcels it originally insured;
- paid over $5.6 million to help land trusts uphold lasting conservation on easements, trails, preserves and owned land on over 200 covered claims;
- provided over $3.1 million in premium discounts to members;
- achieved a 98% membership retention rate;
- helped establish favorable case law across the United States; and
- remained 100% owned and governed by its land trust members.
Terrafirma would have never happened without the dedicated and tireless efforts of many. The greatest thanks go to Terrafirma’s member land trusts as they are the ones that have made Terrafirma successful. Terrafirma wouldn’t be what it is without their continued commitment.
With a solid footing from ten years of Terrafirma, land trusts can continue to steadfastly tackle the biggest challenges of the day.
With gratitude and thanks,
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
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Happy New Year! If you have not already started your 2023 application, now is the time to jump online and get it done! Also please remember to file all of your 2022 policy year claims now. Here are the key points to remember:
- The 2023 annual membership confirmation is currently open and goes through Feb. 1.
- File your policy year 2022 claims by April 30, 2023 at terrafirma.org to avoid risking loss of coverage of the claim.
- The policy year is not the same as the calendar year — it is March 1 to March 1, plus a 61-day grace period that ends April 30. All claims must be filed within the policy year in which the problem first started or coverage for the claim is jeopardized.
- Filing claims does not affect your premium price! If in doubt, please file a claim or contact us at help@terrafirma.org.
- Entering a dispute in the Challenges section of your application is not an official claim.
Renew now! Terrafirma does not send invoices to members about renewing coverage. Members must renew coverage through the Terrafirma website. Please notify your accounts payable to update their vendor list and change the Terrafirma address to use the new P.O. Box address:
Terrafirma RRG LLC
P.O. Box 1330
Williston, VT 05495-1330
We’re here to help! If you have any questions, please let us know.
Thank you,
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
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It is no secret that going to court is expensive and time consuming. Land trusts succeed when they are prepared to meet the documentation, money and people costs of litigation. Preventative spending to head off disputes early and strong resolution skills for differences with landowners and neighbors can reduce the risk of lawsuits. Eventually, however, upholding lasting conservation may force your land trust into court. Great Land Trust in Alaska distilled its insights from a four-year legal battle with a trespasser who cut over 350 trees along with the dumping, spreading and compacting 28 dump truck loads of gravel. This gravel and associated trespassing crushed the forest vegetation, creating dead zones. Great Land Trust’s case management points are essential reading for every land trust!
Thank you,
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
PS: Applications for policy year 2023 open on Dec. 1! Please notify your accounts payable to update their vendor list and change the Terrafirma address to use the new P.O. Box address:
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Terrafirma RRG LLC
P.O. Box 1330
Williston, VT 05495-1330
Terrafirma’s annual membership confirmation opens on Dec. 1. Here are some important points to make it easier for you:
1. NEW changed P.O. Box address to mail premium payments. Terrafirma has a new P.O. Box and will post the address as part of the application. Please use the new P.O. Box address for the 2023 premium payment to Terrafirma. Please notify your accounts payable to update their vendor list and change the Terrafirma address to use the new P.O. Box address.
2. Terrafirma’s premium increased from $63 per insured parcel to $67 per insured parcel. As highlighted in the May 2022 Terrabite, the Members Committee voted to increase Terrafirma’s premium from $63 per insured parcel to $67 per insured parcel effective for policy year 2023. The premium for land trust back-up holders or third-party enforcers increased from $31.50 per insured parcel to $67 per insured parcel. Current premium discounts and coverage limits remain the same.
3. Risk management discount opportunities are still available. To receive the Terrafirma risk management discount on your 2023 policy, one member of your land trust will need to attend an approved risk management course. An approved risk management course must be completed every year to qualify for the risk management discount for the coming policy year and discounts cannot be retroactively applied. Here are some upcoming risk management events:
If you have any questions, please let me know. You can email me directly or call 802-249-7147.
Thank you,
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
Over the past year, Terrafirma has seen an increase in boundary-related claims like encroachment, trespass and adverse possession. Two recurring themes are that the land trust suspected the violation was occurring for years but had not verified the property boundary line or thought the nominal trespass did not merit filing a Terrafirma claim. Many of these claims, unfortunately, were denied coverage due to being untimely filed. Some of the problems could have been stopped or abated earlier if the land trust identified the boundary lines and acted promptly.
Terrafirma offers practical considerations for land trusts during monitoring visits to help you identify boundary issues.
Please contact Leslie Ratley-Beach if you have questions about boundary-related matters.
Sincerely,
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
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“...I am considering the option of suing the Land Trust for an injunction to remove those trees as a nuisance, interfering with my view. If successful, I would set a precedent and if unsuccessful, I will cost the [Land Trust] a great deal.”
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That was part of the response a land trust received after informing a neighbor they were prohibited from cutting trees on the land trust’s preserve. Neighbors like this think only of their view. The chainsaws (or bulldozers) are not stopped by the deed description. Luckily for this land trust they are a Terrafirma member and had insured their preserves. Terrafirma covered this claim helping the land trust to prevail in court and recover costs and damages.
Unfortunately, the disputes Terrafirma sees demonstrate that preserves face serious expensive legal issues from deliberate tree cutting, bulldozing and the construction of various structures by neighbors – and at relatively the same rates as conservation easements.
About 61% of Terrafirma’s member land trusts insure both easements and preserves. If your land trust has not yet insured its preserves (or easements) with Terrafirma please consider doing so for 2023. I hope you join the crowd in the risk pool. Terrafirma can help ensure that your preserves are preserved.
Please contact me (tkester[at]lta.org) if you are interested in learning how to insure your land trust’s preserves. You might be surprised at the number of parcels that can be counted as one preserve!
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Tom Kester
Operations Manager
Alliance Risk Management Services LLC
I hope you are well and enjoying spring. I wanted to give all Terrafirma members ample notice that after five full years of stable premium prices and also retaining all the original discounts, Terrafirma must increase premium for the next policy year in 2023. This is only the second premium increase in Terrafirma’s ten years of operation.
Like everyone, inflation has increased all of Terrafirma’s costs – some of them dramatically. Attorney costs on claims increased 15% for example, and investment market decreases negatively affected additional income that would otherwise bridge expense increases.
Terrafirma’s elected Members Committee wants to ensure that Terrafirma can pay the costs for every covered claim, provide members with access to highly qualified attorneys nationwide, and provide sufficient management of Terrafirma to meet regulatory expectations.
At the recent Terrafirma Annual Meeting, the Members Committee voted to increase Terrafirma’s premium from $63 per insured parcel to $67 per insured parcel effective for policy year 2023 (next year). Current premium discounts and coverage limits remain the same.
We understand that any premium increase is not welcome news to members. Both Terrafirma and ARMS work very hard to keep costs as low as possible. The two premium increases in Terrafirma’s 10-year history represents an annualized 1.1% increase from the original 2013 premium. All the discounts and original policy limits remain the same.
I am happy to answer any questions. Please write to me at tkester[at]lta.org. Thank you for your dedication to lasting conservation!
Sincerely,
Tom Kester
Operations Manager
Alliance Risk Management Services LLC
The 545 land trust owner-members of Terrafirma mark some notable events this month. They now collectively insure over 10,212,198 acres. That is 38% more than when the Alliance started Terrafirma in 2013, and one and a half times the size of Hawaii! Terrafirma has also paid out $4.5 million for covered claims, handled over 1,500 claims and insured over 36,000 conservation properties. Terrafirma has almost $12 million in total assets and is fully compliant with regulations.
February 22, 2022 also marks the 40th anniversary of the Land Trust Alliance. In honor of all of these collective achievements, the Alliance will host two complimentary webinars as part of Member Celebration Week for land trust members and Affiliates — Transforming Your Organizational Culture on Feb. 23 and Staying Connected While Working Remotely on Feb. 24.
Thank you to all the owner-members of Terrafirma for helping us to grow stronger each year! Each land trust is a critical part of this formidable, shared conservation defense liability service. We appreciate your commitment to lasting conservation.
Hannah
Hannah Flake
Conservation Defense Specialist
ALLIANCE RISK MANAGEMENT SERVICES LLC
P.S. Stay on top of any potential claims you have lingering from the 2021 policy period by filing a claim before the end of the grace period on April 30 - the sooner the better. If you have questions about filing a claim or anything else, please let us know.
