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.

WHEN A LOSS OCCURS (NORMAN CAMPUS)

When a property loss occurs, follow these procedures:

1. Report the loss immediately to the proper authorities, such as police, fire department and appropriate University Administration.
2. Report the loss to Enterprise Risk Management by phone 325-5433 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.
3. 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.
4. Take pictures of the scene before cleanup begins.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.

1. Organize your claim documentation into separate, distinct sections such as:
   • 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.
   • 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.
   • 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.
   • In-house vehicles and/or 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.
   • Travel and/or Lodging Expenses – include an explanation of why these expenses were necessary - provide supporting documentation such as travel claims or invoices.
   • 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.
   • 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.