This section describes the U of A's insurance coverage for University property. Losses involving University property can take many forms. Examples of some of the most common types of property losses are listed below:

Theft

Stolen computers, AV equipment, artwork, vehicles, cash, etc. qualify for property insurance coverage.

Damage

This is a fairly broad loss category that can include things like water damage from broken pipes or leaks, damage from accidental mishaps such as dropping equipment, vandalism, fire, etc.

Auto

This area covers damage to U of A vehicles from collisions, windshield damage, or vandalism.

Weather

Damage to U of A buildings and property from severe weather can result from heavy rainfall, high winds, lightning, dust storm, etc.

Fidelity

Fidelity loss refers to internal theft or conversion of money, property, or other assets by U of A employees.

My department has discovered a property loss! What do we do?

1. Take necessary steps to prevent further damage or loss.
2. For criminal activity (theft, vandalism), file a Police Report with UAPD.
3. Complete a Property Loss Report Form and gather documentation.
4. Notify Risk Management and Safety (note deadlines below).
5. Arrange for repair or replacement of damaged or lost property.

All claims for loss involving U of A property must be forwarded to Risk Management and Safety for processing. RM&S reviews claim documentation for completeness, and forwards the claim to State Risk Management for adjusting. Adjusters review the loss and make a recommendation for either payment or denial of the claim. Claim payments are received centrally by RM&S, and then distributed to the department where the loss originated via journal entry.

The State requires claims to be submitted on a Property Loss Report Form, or an Automobile Loss Report Form, depending on the type of loss. Copies of these forms are available above and at UA Business eForms.

Send completed Loss Report forms and claim documentation to:

Joy Baine
Risk Management and Safety, Room A416
P.O. Box 210300 - Campus Mail

Or the street address:

220 W. 6th Street
Tucson, Arizona 85702

Or the e-mail address:

jbaine@email.arizona.edu

Or the FAX#:

(520) 621-3706

Property coverage is governed by the Arizona Revised Statutes §41-621 et seq, and the Arizona Administrative Code, Title 2, Chapter 10. Some of the key elements of these rules are described below.

Coverage Exclusions

The following types of property loss are not covered by state insurance:

1. Mechanical or electrical breakdown.
2. Obsolescence or non-serviceability, ordinary wear and tear.
3. Inventory shortage or mysterious disappearance.*
4. State appropriated labor costs incurred for the repair of U of A property.
5. Non-UA owned property unless this responsibility is in a contract.**
6. Employee or student owned property - See ** below.
7. Property losses less than $100 in value.

*A common coverage question arises when there is an apparent theft without forced entry. Coverage under the rule is applicable if the facts support a reasonable presumption of theft. The key factors in making this determination are definite knowledge of property in a specific location, and a relatively short time lapse for it to be discovered missing. Missing property that doesn't meet this criteria, and simply cannot be accounted for will be classified as a mysterious disappearance and ineligible for coverage.

**Property that is not owned by the U of A can be insured under the state program only if certain criteria are met. In order to qualify, there must be a contract, lease or written agreement that makes the U of A responsible. The contract must clearly identify the property to be covered, and define the basis on which any loss will be valued.

Deadlines

The statute and rules define specific reporting requirements:

• For property loss or damage that is known or expected to exceed $10,000 in value, we are required to notify the state within one working day. This means that departments incurring such losses must notify RM&S immediately.
• Property losses less than $10,000 are to be reported to the state within 10 days.

Claims not submitted to the state within 90 days of discovery are not covered, and become the financial responsibility of the department or unit where the loss occurred. Submitted claims that are not fully documented within one year of discovery are also not covered.

Repair or Replacement?

Damage to real property (buildings, infrastructure, land) is covered for the complete cost to restore the real property to its condition prior to the loss. Coverage for personal property (computers, moveable equipment, etc.) is at actual cash value, which is replacement cost less depreciation.

For claims involving damaged U of A property, state coverage will provide for either repair or replacement, whichever is less. Departments should work closely with the Insurance Officer and the state-assigned claims adjuster to determine which course of action is appropriate to their loss. For repairs, it is generally necessary to obtain a written assessment of the actual damage, along with a cost estimate to perform the repair. This is particularly true for specialized scientific equipment that can only be repaired by highly qualified firms or individuals.

Questions about property insurance coverage for the University of Arizona may be directed to Joy Baine at 621-3482 or jbaine@email.arizona.edu.