COVERAGE:

The University self-insures for most types of property loss and damage in order to minimize the effects of unexpected losses on the teaching, research, and public service functions of the University. Coverage is automatic and no premiums are charged to departments. Ultimately, however, protection from, and prevention of, direct property loss is the responsibility of individual departments and employees.

Coverage for direct loss under this program is extended to property owned by or in the care, custody, and control of the Regents, regardless of location and while in transit when the loss is caused by covered perils. The Program also covers: ancillary specified costs directly attributable to physical loss; and destruction of covered property at the order of civil authority to prevent spread of fire.

Coverage is extended worldwide for all risk of direct physical loss or damage from an external cause except as noted below.

NOTE: This policy does not supersede or modify policies that concern specific operations, vehicles or certain types of property (such as boilers and marine vessels) that are insured under formal insurance policies purchased from outside insurers.

PROPERTY COVERED:

1. Buildings and appurtenant structures owned or for which responsibility has been assumed under a written agreement.
2. Equipment, including the fire box of any fired vessel, farm equipment, and supplies in University care, custody, and control.
3. Library contents and collections, including bound volumes, current serials, manuscripts, maps, microcopies, pictorial items, recordings, and other media.
4. University animals used by teaching and research activities and whose value is represented by market acquisition cost of a consumable supply, for accidental death only.
5. Fine arts not insured under the Fine Arts Insurance Program (BUS-1)
6. Goods in transit within the continental United States and Canada valued up to $100,000 per shipment, excluding movement by the U.S. Postal Service.

PROPERTY NOT COVERED:

1. Property specifically insured under a commercial insurance policy, except the applicable deductible contained in policies covering boilers and pressure vessels.

2. Property belonging to an individual (e.g., employee, faculty, or student).

3. Automobiles, trucks, vans, buses, motorcycles, motor scooters, water craft, aircraft, spacecraft, satellites, or any other conveyance, including permanently attached contents (except when in storage inside a UC facility).

4. Property federally financed for which the University does not possess title and has no care, custody, or control assumed under written agreement.

5. Property of faculty clubs.

6. Products of University research.

7. Sewers, curbs, walkways, underground pipe (except electrical conduit), trees, shrubs, plants, lawns, growing crops, land, water, standing timber, buildings in the course of construction prior to beneficial occupancy, excavations, grading, tilling activities, underground foundations, pilings in water, concrete, masonry bridges, dams, culverts, and earthen bulkheads when no part of a building.

8. In case of water damage, the source causing the damage, such as broken water main or pipes.

9. In case of water damage, the interior of a building if damaged is caused by rain or snow whether or not driven by windstorm or hail unless the force of the windstorm or hail results in actual visual damage to the roof or walls.

10. Loss or damage of data for any reason, including from error in programming or instructing the machine, error in design, data erasure caused by or resulting from magnetic injury or electrical disturbances, system intrusion, or loss of data from use of unauthorized software.

11. Accounts, bills, currency, deeds, evidence of debt, money, notes, securities, or similar valuables, except as they may be converted to data processing media form, and then only in that form; or any data processing media which cannot be replaced commercially with other of like, kind, and quality.

12. Electronic data processing property rented or leased to others.

13. Fine arts in transit and goods in transit valued over $100,000 per shipment, household moves, and foreign shipments. (See Fine Arts Insurance and Transit Insurance Programs).

PERILS COVERED:

All risks of physical loss or damage from an external cause except as excluded below.

PERILS NOT COVERED:

1. Wear, tear, deterioration, rust or corrosion, mold, wet or dry rot, inherent or latent defect, faulty workmanship, mechanical breakdown, malfunction, derangement, misalignment, deferred maintenance, inherent vice, insects, vermin, or delay.
2. Dryness or dampness of atmosphere, freezing, static electricity, or other extremes or sudden change of temperature.
3. Earthquake, landslide, mudflow, or any other earth movement unless loss by fire or explosion ensues.
4. Flood, surface water, waves, tidal water and waves, overflow streams or other bodies of water, breaking of boundaries of natural or man-made bodies of water, water which backs up through sewers or drains, water below the surface of the ground which exerts pressure or flows, seeps or leaks, or spray from any of the foregoing.
5. In case of water damage, continuous or repeated seepage or leakage of water or steam from within a plumbing, heating or air conditioning, or fire sprinkler system which occurs over period of weeks, months, or years.
6. In case of water damage, lack of incoming electricity, fuel, water, gas, steam or refrigerant caused by an occurrence off the premises.
7. Unexplained or mysterious disappearance of any property (including money or securities), or shortage disclosed on taking inventory.
8. Explosion, rupture or bursting of any fired boiler, pressure vessel, or electric steam generator, except fire box, unless fire or water damage ensues, and then only for ensuing damage, subject to limits of coverage.
9. Loss or damage from mechanical breakdown, blowout, short circuit, or other electrical disturbance within any electrically equipped property unless fire ensues and then for such loss or damage caused by the fire only.
10. Business interruption expense, loss of income, cost of temporary replacement equipment, or other indirect costs associated with occurrence of a covered peril, except as ancillary specified costs.
11. Loss or damage to electronic data processing property caused by delay, loss of market, or business interruption in.
12. Loss or damage sustained due to any process or while property is actually being worked on and therefore resulting from any repairing, restoration, or retouching process.
13. Loss or damage sustained by underwater exposure including equipment over-the-side whether tethered or not.
14. Loss caused by any dishonest act by any person to whom the covered property may be entrusted, carriers for hire excepted.
15. Loss or damage of data for any reason, including error in programming/instructing the machine, system intrusion, design error, data erasure caused by or resulting from magnetic injury or electrical disturbances, or data loss from use of unauthorized software.
16. Loss or damage caused by or resulting from theft from unattended University vehicles or vehicles operated on University business unless such vehicles are equipped with fully enclosed bodies of good construction, fitted with locks standard to the particular make and type of vehicle, and at the time of such theft or attempted theft, the windows and doors of the vehicles are securely closed and locked and such theft or attempted theft is carried out by evidence of forcible entry.
17. Loss or damage from hostile or war-like actions.
18. Loss or damage caused by nuclear hazards as outlined under the terms and conditions of a standard commercial, all risk insurance policy.
19. Loss or damage from any fraudulent, dishonest, or criminal act(s) committed alone or in collusion with others by any employee, officer, director, partner, trustee, or any other authorized representative of The Regents or others to whom the property may be entrusted, carriers for hire excepted.
20. Asbestos material removal unless the asbestos itself incurs a direct physical loss or damage caused by fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicle contact, riot or civil commotion, vandalism or fire protection systems leakage.
21. Loss or damage caused by, resulting from, contributed to or made worse by actual, alleged or threatened release, discharge, escape or dispersal of contaminants or pollutants. Ensuing fire damage is not excluded.

PREMIUMS:

Coverage is automatic and no premium is charged for coverage under this program for University departments. Auxiliary enterprises are charged an annual premium based on previous losses, property owned, and is calculated by Office of the President, Risk Management.

DEDUCTIBLES:

1. Water damage deductible is as follows:

a. $5,000 per occurrence.

b. Losses up to $50,000 will be funded by the Office of the President subject to the $5,000 deductible.

c. Losses greater than $50,000 will be funded at 90 percent by the Office of the President, and 10 percent through campus resources for the amount excess of $50,000, subject to the $5,000 deductible.

2. $1,000 per occurrence for theft where force is evident.
3. $5,000 deductible for non-forced entry theft.
4. $250 deductible for losses occurring during transit. If the carrier pays all or a portion of the claim, the self-insurance program will pay the remaining amount of claim with no deductible applied.
5. $5,000 per occurrence for fire damage.
6. $1,000 per occurrence for all other covered losses.

SECURING COVERAGE:

Coverage is automatic for property owned by The Regents or in the care, custody and control of The Regents through a written agreement.

CLAIMS:

When a loss occurs and all program requirements are met, Risk Management Services will request funding for repair or replacement from the Office of the President, Risk Management. Funding is at replacement cost for repair or replacement with property or materials of like kind or quantity exclusive of consideration of betterment or technological advances. If the property is not replaced, funding is actual cash value at the time of the loss. The department with assigned physical custody of the property will be responsible for any applicable deductibles.

Departments are responsible for notifying the University Police Department immediately and Risk Management Services within 24 hours upon discovery of loss, theft, or damage of property. Reporting procedures are outlined in Section 350-85. These reporting procedures must be followed even if no reimbursement from the self-insurance fund is requested.

If the property loss or damage is eligible for funding, Risk Management Services must forward claim documentation to the Office of the President, Risk Management within 60 days of the date of occurrence. Claims filed at a later date may be subject to partial funding or declination. In no event will any loss be funded if reported later than twelve months from the date of occurrence. Therefore, it is of the utmost importance that the department notify Risk Management Services and forward documentation as soon as possible after the loss. The following documentation must be submitted:

1. Report of Property Loss Report.The details of the loss or damage must be fully described in a separate memo if there is not enough room on the form.

2. Itemized list of repair or replacement costs. The list must state how the value was determined for each item. Attach documentation such as estimates or receipts.

3. Police Department, Fire Department, or Environmental Health & Safety reports, if available. For theft claims, the department must include the Police report case number (call 2-6859 for specific case reports).

LOSS CONTROL: 

The Additional Theft Program for reducing the deductible on theft claims is no longer offered at the Davis campus effective July 1, 2008.