Insurance: Policies and Procedures

The following is a brief description of some of the University's Insurance Policies and Claims Procedures. These sections are intended to serve as a reference guide in providing information on insurance policies and procedures and to answer some essential questions regarding the University's insurance policies.

It is important that you contact the Insurance Department if you have specific questions regarding these policies, procedures and claims reporting.

Property (Building) Insurance

Policy Description:
The University self-insures academic and commercial buildings owned by the University. In the Self-Insured Property Program, a property reserve is set up to fund for losses to University buildings and pay the costs for excess property insurance. Each fiscal year departments are charged a property premium, allocated per building, to maintain this reserve.

The Self-Insured Property Program is based as closely as possible on commercial insurance guidelines as regards coverage's and exclusions. Buildings are insured on a replacement cost basis. The repairs or replacement must be of like kind and quality and all costs for betterment or upgrades will be borne by the department.

This program insures the building structure and built in fixtures for "all risk" coverage. "All Risk" perils are defined as fire, water, lightning, wind, hail, aircraft, riot, vehicles, explosion, collapse, smoke, sprinkler leakage, flood and earthquake. A $250,000 reserve is also available for contents damaged as a result of one of the named perils. The most notable exclusions under this policy are losses due to theft.

Department Procedures:
Departments need to notify the Insurance Department, in writing, if a building is bought, sold or transferred to another department. Leased spaces must also be specifically added to the policy in order for the department to be insured.

Claim Procedures:
All efforts should be made to report the building loss to the Insurance Department as soon as possible, within three (3) business days. The loss can be reported by calling the Insurance Department, tel. 495-7971, and leaving a message on voice mail and/or by faxing a Property Loss Report to FAX#496-0505.

Insurance reimburses the cost to repair or replace with like kind or quality and every attempt is made to reimburse the department the costs to put the building back to the condition it was prior to the loss.

Two or more quotes are required for repairs over $3,000. The Insurance Department needs the opportunity to assess the damage and determine the scope of repairs prior to work being done.

Insurance will provide reimbursement to a department for the costs for work performed by employees doing clean up and repairs. Departments are required to submit a breakdown of hours for each employee, their rate of pay, a description of the work performed and a list of the materials used.