Risk Management Services

A Unit of the Business Affairs Division

University Property Insurance

University property is insured against loss through a self-insurance program administered by the Arizona Department of Administration, Risk Management Division.   State insurance coverage is subject to various provisions and limitations set forth in Arizona Revised Statutes §41-621 and the Arizona Administrative Code, Title 1, Chapter 10

Property loss claims are submitted to UA Risk Management Services (RMS) for initial handling and processing. 

Procedure for Making a Property Loss Claim

  1. 1.  Print and complete the appropriate Property Loss Report Form.  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 online on this site, at UA Business eForms, or by contacting RMS.  The Report must be signed by an authorized person from the department that is reporting the loss.
  2. 2.  For property loss involving criminal activity: theft, vandalism, etc., make a Police report to UAPD, or other applicable Police agency if away from campus.
  3. 3.  Losses with an expected value of greater than $10,000 must be reported to RMS within 24 hours of discovery.  All other losses should be reported within 10 days of discovery.
  4. 4.  Per state rule, losses not reported within 90 days or fully documented within one year are denied for coverage, and become the financial responsibility of the unit that incurred the loss.
  5. 7.  Include with the Property Loss Report supporting documentation to validate University ownership and value.  Examples include copies of purchase orders, receipts, etc.  For repair claims, obtain a written damage assessment and repair cost estimate from a qualified service vendor to include with the claim.  This particularly important for specialized scientific equipment that can only be repaired by the manufacturer, or other specialized service vendor.
  6. 8.  Send completed Loss Report forms and claim documentation to: Joy Baine - Property Claims CoordinatorRisk Management Services, Room A416P.O. Box 210300 - Campus MailOr the street address:220 W. 6th StreetTucson, Arizona 85702Or the e-mail address:jbaine@email.arizona.eduOr the FAX#:(520) 621-0905
  7. 9.  Contact Joy Baine at 621-3482 to finalize the claim, and make arrangements for transfer of claim proceeds to your account once received. 

The following limitations and general exclusions apply to State property insurance coverage:

1.  Moveable property (computers, vehicles, equipment, etc.) is insured for actual cash value at the time of the loss.  This is a depreciated value based on replacement cost, and the remaining useful life of the property item that has been damaged or lost. 

2.  Real property (buildings, permanent installations, real estate) is insured for the actual cost of repair or replacement, whichever is less.

3.  If UA property is lost or damaged while at a private home, the individual's homeowner's or renter's insurance must be pursued first for recovery of the loss.  State coverage is excess any applicable insurance.

4.  The following property loss situations are excluded from insurance coverage by state rule:

      1. Mechanical or electrical breakdown

      2. Obsolescence or non-serviceability, ordinary wear and tear

      3. Inventory shortage or mysterious disappearance. Property determined to be missing at the time of physical inventory is not covered by insurance.*

      4. State appropriated labor costs incurred for the repair of U of A property.

      5. Non-UA owned property unless this responsibility is specified 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, a relatively short time lapse for it to be discovered missing, and reporting the missing property as suspected theft to UAPD. Missing property that doesn't meet these 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.

Losses involving UA property can take many forms.  Several examples are listed below:

Theft - stolen computers, AV equipment, artwork, vehicles, cash, etc. qualify for property insurance coverage.

Property Damage - damage from water, fire, vandalism, accidental damage, etc.  The event causing the damage must be relatively sudden.  For example, moisture damage to books occurring over time will generally not be covered, while water damage from a broken pipe will be covered.

Vehicles - UA vehicles are insured against damage from collisions, windshield damage, theft, vandalism, and adverse weather events.  Mechanical failures are not covered.   

Financial Loss - These losses can be internal theft by UA employees (referred to as fidelity loss), or external theft, or fraud.  Fidelity losses are investigated by UAPD and Internal Audit.

 

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