In just four short days it will be the new year, and with it comes a new policy period for Terrafirma insurance. Through February 1, 2019, you can log on and update your application for the 2019 policy period that begins on March 1, 2019. Land trusts in the accreditation pipeline who are waiting for their decision in February will receive an extension.

Before you update, we recommend that you take a few minutes to review the counting rules for your properties, including:

• Separate easements held by the same land trust can be counted as just one property for Terrafirma as long as they have the same owner, same restrictions and permitted uses, and are contiguous.
• Different parcels under the same easement can count as one property, even if it’s not contiguous, as long as they have the same landowner and the same land trust.
• If you want to insure property within a certain category of property right (conservation easement, trail easement, fee land, etc.), you must list every parcel within that category.

See last month’s Terrabite here (set link https://terrafirma.org/blog) for more counting tips.

Have questions? Please let us know. You can email us directly or call 202-800-2219 for Lorri, 802-262-6051 for Leslie, or 202-800-2248 for myself.

Thanks,

Hannah

Hannah Flake

Conservation Defense Coordinator

ALLIANCE RISK MANAGEMENT SERVICES LLC

(202) 800-2248 |

As you prepare for the holidays next week, buying your turkey (or Tofurky) and pie, remember what else is coming up: the Terrafirma application period that is just around the corner. Starting December 1, you will be able to log on and update your application for the 2019 policy period that begins on March 1, 2019.

Before you update, we recommend that you take a few minutes to review the counting rules for your properties, including: 

• Parcels with different owners must be listed separately. This is because the more the easement is spread across separately owned parcels, the greater the risk that you’ll have a lawsuit. Therefore, Terrafirma spreads that risk with additional premiums based on the number of separate landowners. 
• Following that rule, if a property listed as having one owner is then divided into multiple parts with multiple owners, each piece would become an individual parcel under your Terrafirma policy.
• If you have any questions or think you have a special case, please reach out to Terrafirma and e-mail a map of the property to

Have questions? Please let us know. You can email us directly or call 202-800-2219 for Lorri, 802-262-6051 for Leslie, or 202-800-2248 for myself.

Thanks,
Hannah

Hannah Flake
Conservation Defense Coordinator
ALLIANCE RISK MANAGEMENT SERVICES LLC
(202) 800-2248 | 

Terrafirma is a unique insurance company – a nonprofit, member-owned risk retention group, created specifically to help land trusts. Being so different can lead to some confusion. We'd like to address a few common questions and misconceptions:

• You must file a claim when you first learn of the incident – not when litigation starts. For example, if a land trust discovers a trespass involving cut trees in January of 2019, but waits until after April 30 (the end of the 2018 grace period for filing claims) to file the claim, they will likely be barred from coverage for not reporting in time.
• The policy year is not the same as the calendar year – it is March 1 to March 1. There is a 60 day grace period at the end of each policy period.
• Rates won’t go up because you filed a claim. Claim history and rates are completely independent - $63 per parcel for everyone, minus any discounts.
• A placeholder is a full claim, and there is no need to re-file the claim to be heard for a coverage determination. Just send us a quick e-mail! See more information on placeholder versus regular claims here.
• Everything is online except for payments, which must be sent in via check. We use check payments for maximum security and cost efficiency.

When filing a claim with Terrafirma, timing is crucial. For example, say that you are performing annual monitoring and see that the neighbor is encroaching onto easement property. You would flag it on the monitoring report, then the next step would be to file a claim with Terrafirma. It can take years for an issue to escalate to the point that it requires legal intervention. If you waited until then to notify Terrafirma, the claim would likely be denied because it was not filed in time.

In order for a claim to be eligible for coverage, it must be filed with Terrafirma within the policy year that you or anyone else at the land trust first became aware of the issue. The policy year is not the same as the calendar year – it runs from March 1 of the start of the policy year to March 1 of the next year, plus a 60 day window for filing claims. Filing a claim is quick, easy, and does not affect the cost of your premium. See our handy infographic here for more tips on when to file.

Have questions? Please let us know. You can email us directly or call 202-800-2219 for Lorri, 802-262-6051 for Leslie, or 202-800-2248 for myself.

Thanks,
Hannah

Hannah Flake

Conservation Defense Associate

ALLIANCE RISK MANAGEMENT SERVICES LLC

(202) 800-2248 | 

Hungry for more TerraBites? Check out our LinkedIn

Condemnation threats to conservation mount across the country. Land trusts who successfully deflect or reduce these threats find that immediate action in the condemnation process helps to defend their conservation properties.

Generally, land trust folks report that these steps help reduce loss of conservation land:

• engage with and educate the condemning authority early in the process,
• try to find alternatives,
• discuss the threat with experienced legal counsel, and
• involve the appropriate parties, including the landowner and potentially the media

See more advice and resources on the Land Trust Alliance's Practical Pointer on Condemnation, available via The Learning Center. Please ask us for assistance. We are happy to share tips and information we have gleaned even though Terrafirma excludes condemnation challenges from coverage.

A recent win in court for Three Valley Conservation Trust (Ohio) could help land trusts in other states as we all work together to uphold conservation permanence.

The case involved two siblings, James and Janis Taylor, who sold a conservation easement on their family farm to Three Valley Conservation Trust. The easement prevented any division of the farm. However, when Janis wanted James to buy her out, James asked the court to let him divide the property despite the restrictions, and the judge sided with him.

Three Valley Conservation Trust successfully appealed the decision with the help of Terrafirma, the Land Trust Alliance, Coalition of Ohio Land Trusts and American Farmland Trust. On appeal, the court sided with the land trust and Janis, stating that restricting division of the property is consistent with current law.

This is a great example of land trusts and their allies working together and it is an important decision with national ramifications. Read more about the case here.

We’re here to help! If you have any questions about divisions or anything else, please let us know. You can email us directly or call 202-800-2219 for Lorri, 202-800-2248 for Hannah, or 802-262-6051 for Leslie.

Thanks,
Hannah

Hannah Flake

Conservation Defense Associate

ALLIANCE RISK MANAGEMENT SERVICES LLC

(202) 800-2248  |  

It’s tempting to skip the formality of a signature when you know you have an agreement. But land trusts that allow other organizations on their property without getting complete paperwork could be putting themselves in jeopardy.

In Selective Insurance Co. v. Boy Scouts of America, a judge decided that, because the school failed to sign a confirmation letter allowing it to use the Boy Scout campground, the insurance company didn’t have to pay for injuries suffered by a student during an event held at the site—potentially leaving the Boy Scouts on the hook. The school’s insurance policy had extended coverage for contractors but without a signed contract, the judge ruled that the extended coverage didn’t apply. If you’re planning on working with a contractor or letting another organization use your property, make sure the person you’re arranging things with puts their John Hancock on the line so you can get all the benefits of a bona fide contractor.