Property Insurance

One of the major insurance coverages administered by our office is the University of Illinois’ Property program.  Property insurance is purchased through the Midwestern Higher Education Compact (MHEC), and it provides protection for direct physical loss or damage to University of Illinois property.  Perils covered include fire, windstorm, hail, smoke damage, explosion, theft, and vandalism. There is also limited coverage for flood and earthquake. Coverage applies to all University-owned buildings and University-owned contents, business interruption, and also to leased, rented or financed contents/equipment if required by written contract. 

The Property program is subject to a very high deductible of $500,000 per occurrence. Units have the option of "buying down" the deductible to $25,000 per occurrence.  The University established a property insurance deductible self-insurance plan (SIP) to provide funding for losses that fall between $25,000 and $500,000. In the event of a loss a participating unit would pay the $25,000 deductible and the University’s Property SIP would fund the difference.

Property Claim Reporting

The type of property damaged and how it becomes damaged determines where you should report the claim.

  • The University of Illinois' property can be damaged by fire, wind, flood, and other natural perils. These type losses would be covered under the University’s commercial insurance policy. Contact Risk Management. See the following reporting steps that outline your duties in regards to a claim.
  • The University of Illinois’ property can also be damaged by someone acting negligently. For instance, someone making a delivery backs their truck into the side of one of our buildings.  This would be a property damage liability claim on the part of the delivery person.  Contact Claims Management (217-333-1080) for assistance in getting reimbursed for the damage. 
  • Faculty, staff, and students can also cause property damage to others. For instance, someone can loan us equipment that gets damaged because we failed to operate it properly. Contact Claims Management (217-333-1080).

Reporting Steps

Resolution of a claim involves several steps from first report to final settlement.  An understanding of the steps involved will make the claims process go more smoothly.

  1. Report promptly.
  2. Protect property from further damage.
  3. If water is involved begin remediation and drying immediately.
  4. Photograph or videotape the damage.
  5. Do not discard or destroy any involved property.

Please note: Departments that do not promptly report losses or fail to mitigate the damage may not be covered under the University’s property insurance.

Insurance policies require prompt reporting of any claim that may exceed the policy deductible.  Risk Management should be notified as soon as possible after a loss so that we can assess whether or not an adjuster is warranted, report to the property carrier if necessary, and so we can monitor the situation through the close of the claim.

In addition to prompt reporting, Departments are also responsible for providing timely status updates (not less than monthly), including submitting itemized estimates for repairs.

Departments are required to mitigate the loss once the event has occurred.  For example, cover openings so that any impending bad weather won’t cause more damage; or when water damage is involved begin the drying process as soon as possible.

Document the loss from the beginning.  Take photos or video of the damage.  This helps prove the extent of the loss.  Some departments establish a separate C-FOAP to track claim-related expenses.

Do not discard or destroy any involved property until Risk Management or the claims adjuster gives permission to do so.

What to Report: Just the Facts

  • Who: Contact name for coordinating loss inspection including email and phone/cell/pager number.
  • What: What happened, fire/wind/water/vandalism, etc.
  • When: Date and time of loss.
  • Where: Location of loss: building name/number and street address.
  • Why: If there is any explanation of the loss that can be identified, a brief description should be included.

Who to Ask

For questions about property insurance, contact: