Property & Fine Arts Insurance Overview
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What is covered?
The property insurance program insures against losses to real and personal property owned or leased by the University. This includes buildings, machinery & equipment, fixtures, furniture, stock & inventory, etc.
The type of coverage is referred to as “all risk” providing broad coverage, however, there are certain exclusions.
- Personal property of students (see Options for Protecting Student Property)
- Personal property of faculty, and staff
- Damage caused by wear and tear / lack of maintenance
- Faulty workmanship or defect
- Mysterious disappearance of property
- Damage to buildings as a result of normal settling, cracking, shrinking, or expansion
- Mold damage
- Loss of monies / cash
- Intellectual property
Reporting an Incident
- Complete a Property Damage Claim Form
- Provide Backup Documentation of the investigation (e.g. Police Report, Fire Report, Witness Statements, Manufacturer information, Contractor information)
- Take Photos and/or video of damage and cause of damage.
All losses should be reported to Risk Management immediately and no later than 24 hours after the loss by emailing the completed Property Loss Report to firstname.lastname@example.org
Damage to Department Property
Managing Repairs or Replacements of Damaged Property
- Do not discard damaged items (if possible) without consulting Risk Management
- The department coordinates repairs or replacements in accordance with existing policies and protocols
- If you believe the equipment is damaged beyond repair:
- Please supply documentation from a service provider, manufacturer, product rep. etc. that validates the assessment. The cost of an assessment can be submitted as part of the claim.
- Please request the same expert to evaluate the damaged item for salvage value.
- Damaged items should be repaired or replaced within 90 days of the loss event
Reimbursement for Expenses
- Please document expenses on the Damaged Inventory & Expense Report
- Reimbursements are subject to a $5,000 deductible
- Reimbursement will be made for the lesser of:
- the replacement cost of an item that is of like, kind & quality or its functional equivalent to the damaged item – OR –
- the cost to repair an item to its pre-loss condition
- Expenses to evaluate damaged equipment are reimbursable
- For reimbursement the department should submit PAID invoices (see Required format for Vendor Invoices below) with a SAP report to email@example.com. By journal entry, Risk Management will reclassify department expenses to the Property Claims account.
Damage to Buildings
All incidents of damage to the building and / or property should be reported immediately to Facilities Management and Planning (FMP). Facilities Management and Planning will coordinate building repairs and restoration activities as needed.
If building damage is caused by a delivery truck, obtain and forward the following paperwork:
- Copy of the bill of lading with driver’s signature and any other paperwork (i.e. shipping tally manifest) that was provided at delivery.
- Driver information and driver’s insurance information
- Pictures or video of the damaged property; police report if available
Required Format for Vendor Invoices
Invoices must contain the following information:
- Invoice must be on company letter head
- Invoices should include work performed for the property loss only and should not be combined with other rendered services.
- “Bill To” must always identify Boston University
- Name, address, and phone# of contractor performing the work
- Date of Service
- Address of location where service took place
- Detailed description of work performed
- Breakdown of cost; materials vs. labor
- Total amount paid