Building and tenant improvements
Identify whether the center owns or leases the building. Values should account for the structure, permanently installed improvements, fencing, outdoor equipment, signs, security systems and code-related rebuilding costs, subject to policy terms.
Business personal property
Classroom furniture, learning materials, cribs, kitchen equipment, computers, cameras, office contents and supplies can add up quickly. Maintain an inventory and review replacement-cost versus actual-cash-value settlement.
Business income
Estimate how long it could take to repair the building, obtain permits, replace specialized equipment, pass inspections and re-enroll families. Review the period of restoration, waiting period, ordinary payroll, continuing expenses and extended business income.
Extra expense
A center may spend more to continue operations temporarily, but relocation can require licensing approval and a suitable facility. Policy language and regulatory reality should be considered together.
Water, sewer and equipment losses
Water backup, flood, surface water, equipment breakdown, utility interruption, spoilage and service-line damage are not interchangeable. Evaluate each exposure and endorsement separately.
Valuation and coinsurance
Inadequate values can affect claim recovery through coinsurance or reporting provisions. Review limits after renovations, enrollment growth, equipment purchases and construction-cost changes.