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Policies and Procedures

Policy 1408 – Available Property Insurance Coverages

August 1, 2003
Last Updated
January 3, 2017
Responsible University Officer
Director of Risk Management Services
Responsible Unit
Risk Management Services

Policy Statement

NC General Statutes require that the University's real and personal property be insured through the State Property Fire Insurance Fund (the Fund), a division of the North Carolina Department of Insurance or the State of North Carolina's insurance broker of record.

The Fund offers four different levels of increasingly broader property insurance coverage, as well as several stand alone coverages, for insuring the University's buildings and contents:

  • Fire and Lightning Coverage - This is the most basic level and provides replacement cost coverage for only the perils of fire and lightning with a $5,000 per occurrence deductible. All state-owned properties must carry this basic fire and lightning coverage.
  • Extended Coverage - This provides protection against the perils of: windstorm or hail, explosion, smoke, aircraft or vehicles and riot or civil commotion. Extended Coverage has a $5,000 per occurrence deductible.
  • All-Risk Insurance - This coverage is the most comprehensive insurance available and covers all perils unless that peril is specifically excluded in the policy. All Risk has a $5,000 per occurrence deductible.
  • Broad Form Coverage - This coverage includes the Extended coverage perils plus vandalism, sprinkler leakage, sinkhole, falling objects, weight of ice and snow, volcanic action and water damage.  Broad Form has a $5,000 deductible.

In addition to the coverage described above, the Fund offers several additional insurance coverages that can be purchased on a stand-alone basis. These additional coverages include: business interruption and extra expense, flood and transit coverage, all of which have a $5,000 per occurrence deductible.

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. Only those insurance coverages offered by the Department of Insurance or our insurance broker are available to us.


Insurance for property not owned by the State does not have to be placed by the Department of Insurance. Associated entities such as foundations may utilize alternative means for procuring their property insurance.

As with any insurance policy, certain Terms and Conditions may exist which limit or exclude coverage. Contact Risk Management Services for information on these policy limitations or Exclusions.

Special Situations

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 coverage request will be referred to our insurance broker. The following property coverages are available from commercial insurance companies through the State's insurance broker: fine arts insurance, equipment breakdown insurance and inland marine insurance for specialized equipment.


  • 1401.1 - Acquiring Automobile Insurance for University Vehicles
  • 1407.1 - Reporting Assets for Insurance Purposes

Additional Information

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. Only those insurance coverages offered by the Department of Insurance or our insurance broker are available to us.

Q: What property insurance is currently in place for all the University's buildings and contents?
A: Currently, all University property is insured on a replacement cost basis for fire and lightning losses with a $5,000 per occurrence deductible. Certain other coverages such as All-Risk Insurance and Extended and Broad Form coverage are offered at the request of the department.

Q: If my department moves off campus, do I have automatic coverage for my office contents?
A: No, you must notify Risk Management Services to add the new location and to insure contents away from campus.

Q: My department needs to purchase special property insurance for just select items. Is it possible to buy insurance on a stand-alone basis as opposed to all of our property?
A: Departments do have the option to purchase property insurance for individual items. Certain property insurance policies allow us to "schedule" individual items. Contact Risk Management Services for additional information.

Related Data

1407.1.1rd - Agent of Record Authority Letter
- General Property Insurance Policy
- All Risk Insurance Exclusions
- All Risk Insurance Exclusions – Computers
General Statute § 58 31 55


Property Insurance Risk Management Services 919-962-9061 919-962-0277



Jan. 3, 2017 - Updated contact info and deleted references to Self Insurance Plan. Updated FAQs.
June 12, 2009