TerraBites

A short newsletter of bite-size ideas to chew on for Terrafirma owner-member land trusts, released January, February, March, May, June, September, October and November.

Posts tagged premiums

Slight rate increase for 2018

Terrafirma has helped land trusts like yours defend their conservation portfolios since March 2013, increasing services along the way. After almost five years of operation, 71 land trusts have used insurance coverage to address serious conservation challenges, and all Terrafirma members have enjoyed fixed premium prices. Terrafirma continues to be sound and stable. To remain so, though, rates must go up slightly in 2018.

Your elected representatives from across the county serving on the Terrafirma Members Committee, after months of deliberation and investigation, approved a modest, $3-per-parcel increase to the base premium for 2018. For more information about this process, please visit www.terrafirma.org/premium.

Terrafirma will continue to make every effort to keep future increases as low and as infrequent as possible. Currently, no other increases are planned. In the meantime, we’re here to help! Please let us know if you have any questions. You can email us directly or call 202-800-2219 for Lorri, 202-800-2248 for myself or 802-262-6051 for Leslie.

TerraBite: Heads up on Possible Rate Change in 2018

Terrafirma is about to start its fifth policy year with over 500 members, 50 covered claims, and over $1 million paid out for covered claims. Thank you, members, for keeping this shared conservation defense liability risk pool strong.

Since Terrafirma started in 2013, your premium rate has been stable because we know how dear every penny is for conservation. But inflation is picking up, costs are increasing and claims payments are growing. It is time to make sure that Terrafirma remains solvent and protects the capital and reserves that all the member land trusts have worked to establish.

The actuaries are crunching the numbers and making projections about when and how much premiums may have to increase to keep Terrafirma there for you. Our initial assessment indicates that an increase in premium fees may be necessary for the 2018 policy year. Please know, however, that the Terrafirma member-elected Members Committee and ARMS staff know that everyone is on a tight budget, and we remain committed to keeping premiums as low as possible.

We also are committed to keeping Terrafirma members informed and protected, which is why we are alerting you now about this process and timing. Thank you for all you do for lasting conservation. Let us know if you have any questions.

Thank you,

Leslie

The early bird never misses a claim

Under some insurance policies, merely filing a claim can drive up your premium rate. Terrafirma is different—it never penalizes land trusts for doing their jobs of conservation defense! While your Terrafirma policy requires immediate filing of a claim, it does not increase your premium. Most importantly, failure to file immediately might result in the claim being denied. Timing counts, so if you have something now, please file a claim by March 1, 2015. We will help you sort out the details and are always available to assist you. It's easy: go to the Terrafirma website, login and click on “Submit a Claim.”

We’re here to help! If you have any questions about premium calculations, filing a claim, or anything else, please let us know. You can reply to this email, email us directly or call:

202-800-2219 for Lorri

202-800-2248 for Hannah

802-262-6051 for Leslie

Budgeting for 2014 Coverage

For many land trusts, budget season is here for 2014, so you may want to start planning for next year’s Terrafirma premium payment. Next year’s payment will be due no later than February 3, 2014. Since your registration fee is already paid, your next payment will only be for the annual premium. To refresh your memory, the base premium before any discounts is $60 per property. Accredited land trusts automatically receive an $11 discount. Discounts are also available for land trusts that meet certain good practices. Check the Terms and Conditions for more details or call or write to me.

We’re here to help! If you have any questions about premiums or anything else, please let us know. You can reply to this email, email us directly or call 202-800-2219 for Lorri or 802-262-6051 for Leslie (please note, Leslie is on vacation and will be back in the office on August 5).

Tips for Entering Insurance Premiums on Form 990

Form 990 season is here, and it’s likely that someone at your land trust may be wondering where to enter the Terrafirma payment and other insurance premium. We’re here to help! Here are a few tips:

Please consult your land trust accountant or tax professional. We can’t give you tax or other advice.
A general reading of the instructions shows that insurance premiums are entered on the main form Part IX, line 23.
And lastly, for Schedule D, a general observation of those instructions suggests that the IRS is looking only for specific enforcement actions after you discover a violation by a property owner. Following that definition would mean not listing any insurance premium payments on Schedule D except possibly in a year of an actual claim meeting the IRS enforcement definition.
Here is the IRS definition of enforcement for purposes of Schedule D: “Enforcement of an easement means action taken by the organization after it discovers a violation to compel a property owner to adhere to the terms of the conservation easement.”

Remember: consult your land trust’s financial, tax or legal advisor on this new issue.

Let us know how we can help you.