To: University Business Managers
From: Steve Kenny, Director, Risk Management Services
Date: November 17th, 2008
Please be advised that effective October 7, 2008, the NC Department of Insurance increased the property insurance deductibles for University-owned buildings and contents from $500 per occurrence to $5000 per occurrence. This change was approved by the Council of State at their October 7 meeting and was effective immediately.
This change only applies to the property insurance provided by the Department of Insurance’s State Property Fire Insurance Fund (Fund). It will most notably affect the property insurance coverage we have for the peril of “fire” and for those departments that may purchase blanket “all-risk” insurance from this Fund. Both of these coverages previously carried the $500 deductible.
Not all of our property insurance carries a $500 deductible, nor is all of it insured within this Fund, so there are several exceptions to this change. For example:
- The University carries “Extended Coverage” insurance on all its building and contents with a $500,000 per occurrence deductible. Accordingly, this deductible change will have no effect on the Extended Coverage because of this higher threshold.
- The University purchases certain property insurance directly from commercial insurance companies for such items as our fine arts and unique business and research equipment. Insurance purchased directly from these commercial insurance companies is not affected by this change.
- Some departments purchase “all-risk” insurance on a scheduled basis for items such as computers and miscellaneous business equipment by utilizing an internal, self-insurance fund administered by Treasury & Risk Management Services. Our deductible will remain at its current level of $500 per occurrence.
It is the University’s policy that a department sustaining an insured property loss is responsible for the deductible portion of the insurance claim. Accordingly, I would encourage you to contact me directly if you need additional information on how this change may specifically affect your department.