Property

Property Insurance

A critical component of the Enterprise Risk Management Program is property insurance. To assure adequate coverage on the University’s property it is imperative that current accurate property and inventory records are maintained. At a minimum at least once a year updated property values for all University buildings/structures must be reported to the State of Oklahoma Department of Central Services Risk Management Division.

For all University-owned structures a completed Summary Sheet For Insured Structures/Buildings form must be submitted to the Enterprise Risk Management Department. The Summary Sheet for Insured structures/buildings may also be used during the year to report changes or additions. This form is available through the Enterprise Risk Management Department at 325-5433. New buildings and structures including those that have been significantly renovated will be reported through Architectural & Engineering Services to the Department of Campus Safety.

For all University leased buildings/location that contain property owned by the University, a completed Summary Sheet For Leased Or Occupied Buildings/Office Space/Warehouses form must be submitted to the Enterprise Risk Management Department. The "Summary Sheet for Leased or Occupied Buildings/ Office Space/Warehouses" may also be used during the year to report changes or additions.

Replacement Values

Buildings

Only buildings and/or structures owned by the University should have a replacement value.
The amount shown should be the total replacement cost to rebuild "as was" should a loss occur.
Replacement cost should include the following:
- Costs to bring the building up to code (ICC & NFPA, ADA, etc.) should a loss occur.
- Interior heating, air, plumbing, electrical wiring, fireplaces, permanent shelving, floor coverings, and anything permanently attached to the structure.
Replacement costs should not include architectural fees to rebuild. Architectural fees are above and beyond the replacement value to rebuild "as was". Architectural fees will be prorated for improvements or betterments and may be prorated if there is a change of location.
Building replacement values will be established and provided by Architectural and Engineering Services to the Department of Campus Safety.

Computers

The total replacement cost of university-owned computers and computer-related accessories at each location should be listed.

Examples of items are:

Computers and mainframes
Monitors
Computer cables,
Printers
Software and computer/software instruction manuals, etc.

Contents

The total replacement value of the contents owned by the University at each location shall be reported. The replacement value should be the price you pay to purchase a new "like" item should a loss occur. Replacement cost is not acquisition costs unless you could buy the object today for the same price you paid originally.

If you are unsure of the current replacement cost of an item you may be able to reference some prices listed on current "Statewide Contracts" or through Purchasing.

In the event of a loss you will be required to provide State Risk Management with a current inventory, which includes all items over $100.00 each. Since the University’s current reporting requirements for inventory require only items over $5,000.00, you should have an alternative reporting method for insurance for items between $100.00 and $4,999.99. Some acceptable alternatives may include the following:

Copies of purchase orders
A department inventory that shows all non-expendable items over $100.00
A video of the premises showing the insured items (Be sure the date the video was filmed is stated on the video.)
Pictures of the insured items (Include the date within each picture.)

Contents are considered non-expendable (non-consumable) items. Contents are usually inventoried by the University. Some examples of items that you would consider as contents are:

Desks, chairs, file cabinets, modular furniture, shelving
Typewriters,mail room equipment, etc.

Contents usually have a value over $100.00. Contents are items that can be moved from one location to another. They are not permanently attached to the building or structure or they are not included with the original construction of the structure.

Department account/organization/project sponsors are responsible for determining whether equipment should be capitalized, and for initiating the inventory tagging process. Department account/organization/project sponsors should contact Property Control. They will input associated information into the University’s inventory program and will ensure that the pieces of equipment are properly tagged.

Other Items

This is for non-inventoried, expendable (consumable) items, or items that do not fit any other category.

Non-Inventoried Items below $100.00

This may include the replacement of such items as:

cooking utensils, flatware, dishes,
small tools, staplers, hole punches,
lamps,sheets, towels, tablecloths, etc.

Personal items of employees are not covered and should not be included.

Expendable/Consumable Items

Items that are expendable (consumable) should be included here. These items may be the following:

Office Supplies – paper, pencils, envelopes, pens, paper clips, staples, whiteout, ink, toners, etc.
Construction Supplies – lumber, paint, nails, screws, glue, etc.
Household Supplies – food, soap, detergent, toilet tissue, etc.

The replacement cost should reflect an estimate of items on hand on any given day if a loss should occur.

Non-Category Items

Replacement costs of items that do not fit in any other category may be included here, however, if the price of any one item is more than $100.00 you should submit a list of the items you are considering as "other". The list should include:

A description of item(s)
The cost to replace the item(s), which is the amount of insurance you’ll need.
The building name and location where the item is normally located should be indicated on the list.

Some examples of non-category items are:

Exterior Equipment
- Water reservoirs located on top of buildings
- Heating or air conditioning equipment attached to a building by cables or ducts, but not within the building (Please note: If heating or air conditioning equipment serves more than one building and is located on the exterior of the building, it should be listed as a separate structure).
- Satellite dishes or antennas attached to a building or structure, usually on the roof or on a tower (Please note: If a satellite dish or antenna is not attached to a structure or anything other than cables and it serves more than one location (building), it should be listed as a separate structure.)
- Exterior security cameras or surveillance equipment
- Exterior building enhancements such as fences, flagpoles, lights, etc. (Please note: When these items cannot reasonably be considered part of the building/structure enhancement, then they should be listed as a separate location. For example: A fence that surrounds a compound which has several buildings/structures should be listed as its own location, because each building would be listed separately and the fence could not be identified with any one building. Another example: Parking lot lights, gate arms surveillance equipment, etc. which serve a defined area such as a parking lot should be listed as separate structure/location.)
Expensive Interior Items – The University purchases a fine arts insurance policy through the state for all expensive interior items.

Property Loss

Be sure you have reported, to Enterprise Risk Management, the property to be insured. Property is covered on a repair or replacement basis for reported locations unless specifically excluded, limited, or placed on Actual Cash Value. Repair or replacement is limited to the actual costs of repairs or replacement or the reported value, whichever is less. Be sure to report the replacement value of the contents, computers, and other items. Check to insure your reported values are correct.

Have an accurate, up-to-date inventory. In the event of a loss of contents, computers, or other items, you will be required to provide Enterprise Risk Management with a current inventory. Your inventory for insurance purposes should include all items that cost more than $100.00. Recent pictures, videos or copies of purchase orders may be used to establish ownership for items that are not on your inventory. You may be asked to provide copies of original purchase specifications, purchase orders and invoices for electronic items, computers, machinery, and other large costs items. Update your inventory at least yearly and make more than one copy. Keep one copy at another location.

Maintain records of dates of any maintenance performed on buildings or equipment. If you are in a leased location, maintain records of any maintenance requested by you and if the action taken was sufficient to correct the problem.

Keep current architectural plans of your building in a safe place with a copy stored at another location.

Have a plan of action prepared prior to a property loss. Personnel should be assigned to supervise repairs, make purchases, track expenses, and submit your claim.

What to do When a Loss Occurs

When a property loss occurs, follow these procedures:

Report the loss immediately to the proper authorities, such as police, fire department and appropriate University Administration.
Report the loss to Enterprise Risk Management by phone 325-5433 and/or email norman-riskmanagement@ou.edu within 24 hours. The Enterprise Risk Management Department will be responsible to notify the appropriate State Risk Management office and other state agencies. Enterprise Risk Management must submit a written Property Loss Notice within 10 days. Coverage will be denied for incidents that were not reported within 90 days of the date of the occurrence.
Make sure the area is safe for personnel to enter. Have qualified personnel check for the following:
- Potential for structural collapse
- Necessity of shoring
- Potential for falling debris
- Integrity of electrical and gas lines
- Does the area have hazardous materials or debris? If so, place temporary barriers around the hazard areas until cleanup can be completed and the area is safe for personnel to enter.
Take pictures of the scene before cleanup begins.
Take all necessary steps to minimize the loss and insure safety, such as:
- Temporary boarding up of openings in the roof, walls, or windows
- Use plastic or drop cloths to cover furnishings when there is a potential for further water damage. Be sure to raise or place the furnishings on pallets when there is a potential for further water damage. Be sure to raise or place furnishings on pallets when there is standing water. Use pumps, if necessary, to remove standing water.
- Determine the need for emergency heat to prevent freezing.
- Immediately dry off any wet wooden objects or machinery to prevent warping or further damage. Oil machinery or metal objects, if necessary, to prevent rusting.
- Have qualified personnel or technicians check all equipment, machines, or motors before energizing. Computer equipment is very prone to damage by contaminants of any type. No such equipment should be energized if there is any evidence of contaminates until a qualified computer technician has thoroughly checked such equipment. Make sure any drying-out or maintenance has been completed before turning anything on.
- Replace all filters in HVAC equipment to prevent soot dispersion or mold/fungus contamination of other areas. Temporary repairs may be necessary to prevent further damage. Failure to protect exposed property from further damage in a timely manner may result in a separate incident and or loss, and a separate deductible, or reduced recovery values.
If cleanup must proceed before inspection of the loss by the Department of Campus Safety due to the threat of further damage or safety of personnel, do not dispose of any damaged items without Campus Safety Department’s approval.
Take the necessary steps to track your claims expenses carefully. Keep accurate records of labor, purchases, equipment usage, etc. Any internal labor expense must have the following documentation:
- Record the name, title, and hourly salary of any employee working on the loss.
- Record the date(s) and times the employee worked. For example: May 3, 2002, 10:00 to 12:00 and 1:00 to 3:00 – 4 hours.
- Provide a detailed description of the duties the employee preformed. For example: cleaned up debris from Room 300, Union.
- Include any materials used. For example: Replaced wet ceiling tiles in Room 300, Union – 10 Armstrong Century tiles, 2’x 4’ each.
- You will be required to provide to Risk Management, copies of payroll records and/or time sheets, purchase orders, inventory to document all in-house labor.
- Keep copies of all purchase orders and invoices for items bought or used in conjunction with the claim. Document where the items were used and for what purpose. For example: 5 cases of Armstrong Century Ceiling tiles, 2’x4’ - @24.00 per case – used to replace wet ceiling tiles in the Union rooms, 300, 302, and 304.
- Construction specifications MUST be reviewed by the University Fire Marshals' Office PRIOR to being let for bid or before in-house repairs are begun to determine if the proposed plan or bid meets the adjusted scope of repair. Bid specifications, architectural drawings, plans, requisitions, etc. should be prepared to reflect a true replacement of the original roof, building, material, or piece of equipment. Improvements, changes from the original item or building, and/or code upgrades are to bid separately or as alternates. Bid specifications should be designed with a base bid to show replacement "as was" and an alternate bid for any improvements or changes desired or required. A bid for salvage recovery or trade-in should be obtained when practical.
During the process of cleanup, construction, repairs and/or replacement of lost or damaged items or structures, stay in constant communication with the Department of Campus Safety. If additional damage is found, notify the Department of Campus Safety immediately.
You will need to provide Enterprise Risk Management with a copy of any police or fire department reports as soon as you receive them.

Submitting a Claim for Payment

When all repairs and/or replacements have been completed and you are returned to an "as was" condition, prepare your claim for reimbursement. If you do not intend to repair or replace damaged structure or items, you may request Actual Cash Value (ACV) for all or any portion of your claim.

Organize your claim documentation into separate, distinct sections such as:

Contents

Include a copy of your inventory with items that are being replaced highlighted – include copies of invoices – if a replacement item has been upgraded or is a betterment, include documentation to explain why a replacement "as was" was not possible – if the University replaces an item with a betterment as a matter of choice, only the actual cost to replace "as was" is recoverable.

Labor

Include any labor performed by in-house personnel – include copies of the time sheets and/or other documentation to support in-house labor – include a copy of the payroll to document the rate of pay charged – include an explanation of what duty was performed. Please note: In-house labor is limited to actual time spent on the claim-related activities, internal overhead is excluded, fringe benefits are limited to FICA and the State’s share of retirement and labor expense recovery is limited to an amount that could reasonably be charged by an outside contractor – time spent preparing the claim is excluded.

Material

Include copies of invoices and purchase orders for any material purchased to make repairs – also include warehouse warrants or other documentation for items on hand at the time of the loss that were used to make repairs – include explanation of where and why the material was used.

Services

These are performed by outside contractors

Cleanup and demolition – include copies for any outside contractor temporary repairs, deodorizing, water removal, etc. – copies for services to clean the site or dispose of debris – an explanation of any items that may not be clear to Risk Management – any other documentation you think will clarify the amount claimed.
Temporary Services – include copies of invoices and an explanation of why the services were necessary – for example, you hire a security guard to stand watch until temporary repairs can be made and the building secured.
Building Repairs – include copies of invoices for outside contractor’s repairs or replacement of the structure – include an explanation of the work the contractor performed.
Contents or Equipment Repairs – include copies of invoices for any repairs made by contractors or vendors – include any reports on the condition of the equipment or item that the vendor may provide you, for example, your telephone system was hit by lighting, you have Southwestern Bell Telephone inspect and repair the system – include a copy of the invoice and the report of the damage found by Southwestern Bell Telephone – include a copy of your inventory with the item repaired highlighted – indicate on the inventory that the item was repaired.

Travel and Lodging Expenses

Include an explanation of why these expenses were necessary - provide supporting documentation such as travel claims or invoices.

University-owned vehicles and equipment

Include records of when and where the vehicle or equipment was used, by whom it was used, what type of vehicle or equipment it was, and for what purpose it was used. Include any supporting documentation to justify the rate charged.

Please note: The transportation of personnel from one place to another is limited to the amount allowed in the Travel Reimbursement Act and is recoverable only when the destination is not a normal site that the employee would reasonably be required to travel – mileage must be indicated on any documentation for vehicles used to transport personnel.

Other

Include any other claimed items you feel are necessary to clarify your claim – provide copies of invoices, explanations, or other documentation to support the amount claimed.

Prepare a spreadsheet outlining your claim.
Number your supporting documentation and indicate on the spreadsheet the document number(s) for each cost claimed.
Submit two copies of your claim and all supporting documentation to Enterprise Risk Management. Please note: Claim reimbursement cannot be made on estimated costs. Any request for final payment or partial payment must have all supporting invoices and documentation unless we elect to take ACV (actual cash value) for your loss or we have reached a settlement with State Risk Management. At the discretion of State Risk Management, payment for a settlement agreement may be delayed until a substantial portion of the repair or replacement of the loss has occurred. The President of the University or other University Officer will be required to complete a "Sworn Proof of Loss" and "Release of All Claims" for any partial or final payment before reimbursement by State Risk Management and/or the reinsurer.