Policies and Procedures
Policy 1407 – Insurance for University Property
August 1, 2003
January 3, 2017
Director of Risk Management Services
Risk Management Services
The University is required to insure all state-owned property through the NC Department of Insurance's State Property Fire Insurance Fund. The Fund operates as a risk sharing pool which is mandatory for all state agencies.
In order for the Fund to provide insurance coverage for our property, we must promptly notify them of the acquisition of all new buildings and the total replacement cost contents value in these buildings. The Fund allows 60 days to report new properties and no insurance coverage is provided for unreported properties after this timeframe.
While all property insurance authorized for the University must be placed through the Fund, certain property coverages may not be offered by them or they may prefer not to underwrite certain risks. If a particular type of insurance coverage is not available through the Fund, the insurance coverage request must be referred to the State of North Carolina's insurance broker of record.
Risk Management Services serves as the University's contact for reporting these buildings and contents to the Fund or obtaining any alternative property insurance through our insurance broker.
Reason for Policy
North Carolina General Statutes require that all state-owned buildings and contents be insured either through the NC Department of Insurance or the State's insurance broker of record. Failure to report these properties in a timely fashion may jeopardize our insurance coverage.
Personal property owned by faculty, staff, or students, even when used for University business, is not covered under the University's insurance policies, and therefore should not be reported to the State Property Fire Insurance Fund.
Other non-state properties owned by such entities as our foundations, UNC Press, General Alumni Association or independent contractors are also not covered under the University's insurance policies.
Certain University property is uninsurable or excluded under our property insurance and therefore, does not need to be reported to the State Property Fire Insurance Fund. Examples of these properties include vacant or undeveloped land, road ways or other paved surfaces, leased properties owned by others and properties to be demolished.
The reporting of University vehicles and other mobile equipment for insurance purposes is not made to the State Property Fire Insurance Fund. Rather a separate process is used to acquire automobile insurance. Refer to the applicable policy and procedure related to the automobile insurance.
- 1401.1 - Acquiring Automobile Insurance for University Vehicles
- 1407.1 - Acquiring Insurance for University Property
Frequently Asked Questions
Q: Can campus departments purchase insurance for their property without going through the NC Department of Insurance?
A: NC General Statutes require that all state-owned properties be insured through the NC Department of Insurance or the State's insurance broker of record. If a campus department buys insurance without going through this required process, the coverage could be voided.
Q: What is the University's process for making sure our properties and contents are being insured by the State?
A: Risk Management Services acts as the University's liaison for all insurance requests made to the NC Department of Insurance or the State's insurance broker. Campus departments should contact Risk Management Services whenever they have an insurance request or need to report a new property for insurance purposes.
Q: What happens if the University fails to report a new property to the NC Department of Insurance?
A: The terms of our property insurance policies require that all properties be promptly reported to the State. If we fail to report a particular property and it has a loss, it is possible that no insurance coverage will be provided.
Q: For large capital projects such as the construction of a new building, who is responsible for making sure it is insured?
A: Risk Management Services works directly with UNC Facilities Planning and Construction to insure that new capital projects are promptly reported to the State once accepted and that the necessary insurance coverage is in place.
Q: Do new vehicles or other types of motorized equipment need to be reported to the Department of Insurance?
A: Our vehicles and other motorized equipment are insured under our automobile insurance policy rather than our property insurance policy. Therefore, these do have to be reported to the Department of Insurance and require a separate reporting process. Contact Risk Management Services for additional information.
1407.1.1rd - Agent of Record Authority Letter
1407.1.2rd - General Property Insurance Policy
1407.1.3rd - All Risk Insurance Exclusions
1407.1.4rd - All Risk Insurance Exclusions - Computers
|Acquiring Insurance||Risk Management Servicesemail@example.com|
January 3, 2017 - deleted Self Insurance Fund reference, updated contact info
June 12, 2009