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.

Building Replacement Value

1. Only buildings and/or structures owned by the University should have a replacement value.
2. The amount shown should be the total replacement cost to rebuild "as was" should a loss occur.
3. 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.
4. 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.
5. Building replacement values will be established and provided by Architectural and Engineering Services to the Department of Campus Safety.

Contents Replacement Value

1. 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.
2. 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.
3. 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.)
4. 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, typewriters, shelving, 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.
   
5. 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.

Computer Replacement Value

1. The total replacement cost of university-owned computers and computer-related accessories at each location should be listed.
2. Examples of items are: PCs, mainframes, monitors, computer cables, printers, software, computer/software instruction manuals, etc.

Other Replacement Value

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

1. Non-Inventoried Items below $100.00
       This may include the replacement of such items as: cooking utensils, flatware, dishes, small tools, lamps, staplers, hole punches, sheets, towels, tablecloths, etc.
       Personal items of employees are not covered and should not be included.
2. 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.
3. Non-Category Items
   1. 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 replacement price of the item(s) (The amount of insurance you need for the item(s))
      • The building name and location where the item is normally located should be indicated on the list.
        
   2. 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.