Property Insurance

The Office of Risk Management administers the system’s property insurance program. This program provides protection for direct physical loss or damage to system 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 contents, business interruption, and also to leased, rented, or financed contents/equipment if required by written contract.

The property insurance program is subject to a deductible of $500,000 per occurrence. However, Risk Management established a deductible “buy-down” program for the Auxiliary Facilities System and academic units. Gift- and bond-funded buildings are also included in the buy-down program. Units in these categories pay a premium to buy down the deductible amount.

Per-occurrence deductibles are as follows:

  • Auxiliary Facilities System: $25,000
  • Gift- and bond-funded buildings: $25,000
  • Academic units participating in the buy-down: $25,000
  • Academic units not participating in the buy-down: $100,000 (No additional premium is assessed to these units.)

The property insurance deductible self-insurance plan (SIP) is used to provide funding for losses that fall between a unit’s deductible and the $500,000 policy deductible. In the event of a loss, a participating unit would pay its applicable deductible, and the property SIP would fund the difference.

Reporting a Property Damage Claim

The type of property damaged and how it becomes damaged determines where you should report the claim. There are three options, as follows:

  • U of I property was damaged by natural perils, such as fire, wind, or flood. These type of losses are covered under the property insurance program. Contact Paige Voorhees at Risk Management (217-333-3113). See the following reporting steps that outline your duties in regards to a claim.
  • U of I property was damaged by someone acting negligently. For instance, someone making a delivery backed their truck into the side of one of our buildings.  This would be a property damage liability claim for the delivery person.  Contact Claims Management (217-333-1080) for assistance in getting reimbursed for the damage. 
  • Faculty, staff, or students caused property damage to others. For instance, someone loaned us equipment that got damaged because we failed to operate it properly. Contact Claims Management (217-333-1080).

Claim Reporting Steps

Resolution of a claim involves several steps from first report to final settlement.  Understanding and following the required steps will make the claims process go more smoothly. The

    1.  Report promptly! Departments that do not report losses promptly or fail to mitigate property damage may not be covered under the system’s property insurance. Insurance policies require prompt reporting of any claim that may exceed the policy deductible. Notify Risk Management as soon as possible after a loss so that we can assess whether an adjuster is warranted, report to the property carrier, and monitor the situation through the close of the claim.
  • 2.  Protect property from further damage. If water is involved, begin remediation and drying the damaged item(s) immediately. Departments are required to mitigate the loss once an event has occurred. For example, cover openings to the elements so that any impending bad weather will not cause more damage.
  • 3.  Photograph or videotape the damage. Document the loss from the beginning. Take photos or video of the damage. This helps prove the extent of a loss. Some departments establish a separate C-FOAP to track claim-related expenses.
  • 4.  Do not discard or destroy any involved property before consulting Risk Management. Wait until Risk Management or your claims adjuster gives you permission to do so.
  • 5.  Provide regular status updates. In addition to prompt reporting, departments are responsible for providing timely status updates not less than monthly. Reporting includes submitting itemized estimates for repairs.

What to Report

Be concise, and cover just the facts, as follows:

  • 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 the loss occurred.
  • Where: The building name or number and street address.
  • Why: If there is any explanation of the loss that can be identified, include a brief description.

Who to Ask