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Policies and Procedures

Procedure 1407.1 – Acquiring Insurance for University Property

Effective
July 1, 2003
Last Updated
June 12, 2009
Responsible University Officer
Director of Risk Management Services
Responsible Unit
Risk Management Services

Procedure Statement

To ensure proper insurance coverage,

Risk Management Services must be notified of the acquisition or surplus of University property, including buildings, and must report these to the State. This process requires effective communication within the University as well as with the State Property Office and Department of Insurance.

Forms and Instructions

The following reporting process is required for new construction and newly acquired, renovated, or demolished buildings. Unless this process is followed, assets may not be properly reported to the State. The result of this omission is that no insurance coverage is provided for the new asset, or, in the event of a demolition, insurance is being paid on an asset no longer in existence.

1. For each completed project, the department overseeing the construction, acquisition, renovation, or demolition must complete and submit a Construction Reporting Form to Risk Management Services. UNC Facilities Planning and Construction is typically responsible for the oversight of large capital projects, but smaller projects could involve other departments.

2. Risk Management Services uses the Construction Reporting Form to determine the needed property insurance coverages and amounts. Risk Management Services then reports the property to both the State Property Office and the Department of Insurance by submitting their Dual Property Reporting Form.

3. The Department of Insurance places the requested insurance coverage on the new property only after the notification has been received. If a content's insurance value also needs to be reported, Risk Management Services determines this by multiplying the assignable square footage of the property by a predetermined occupancy rate, depending on how the space is used. This value can be overridden when necessary.

4. The State Property Office assigns an asset number that is used to identify the new property.

Related Data

1407.1.1rd - Agent of Record Authority Letter

General Property Insurance Policy (From the State Property Fire Insurance Fund)

All Risk Insurance Exclusions (From the State Property Fire Insurance Fund)

All Risk Insurance Exclusions - Computers (From the State Property Fire Insurance Fund)

History

Revised:
June 12, 2009