Policy on Available Property Insurance Coverages

Title

University of North Carolina at Chapel Hill Policy on Available Property Insurance Coverages

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 NC Department of Insurance or our insurance broker are available to us.

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 NC 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.

Exclusions

Insurance for property not owned by the State does not have to be placed by the NC 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.

Related Requirements

External Regulations and Consequences

University Policies, Standards, and Procedures

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 NC 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.

Contacts

Contact Table
SUBJECT CONTACT TELEPHONE FAX E-MAIL
Property Insurance Risk Management Services 919-962-9061 919-962-0277 risk@unc.edu

History

Revised:

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

Details

Article ID: 131851
Created
Thu 4/8/21 9:18 PM
Modified
Thu 5/5/22 5:16 PM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
01/03/2017 11:00 PM
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Associate Vice Chancellor for Campus Safety and Risk Management
Last Review
Date on which the most recent document review was completed.
01/03/2017 11:00 PM
Last Revised
Date on which the most recent changes to this document were approved.
01/03/2017 11:00 PM
Next Review
Date on which the next document review is due.
01/03/2019 12:00 AM
Origination
Date on which the original version of this document was first made official.
08/01/2003 12:00 AM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Risk Management Services and Mission Continuity