PROPERTY POLICY SUMMARY	
	
Insurer	Travelers Insurance Company AND Risk Management Division (RMD)	
		
Policy renewal date	July 1st of each year	
	
Policy deductible	$2 million	Per occurrence for State	
	$3 million	Annual aggregate, then deductible drops from $2m  to $100,000	
	$500	Per occurrence for each insured agency	
	
Insurance limit	$400 million per occurrence for State	
	Reported limit per location as reported to RMD by each insured agency	
	
Insurance sub limits 
(All per occurrence unless otherwise noted) 	$150 million	Boiler and machinery (some additional sub limits apply)	
	$50 million	Earthquake – aggregate per policy year	
	$50 million	Flood – aggregate per policy year	
	$50 million	Electronic data processing equipment, data and media	
	$25 million	Newly constructed or acquired building – for 120 days maximum	
	$25 million	Builders risk (some additional sub limits apply)	
	$10 million	Debris removal	
	$10 million	Covered property at undisclosed locations – for 90 days maximum	
	$10 million	Unnamed locations, in any one occurrence	
	$10 million	Accounts receivable	
	$10 million	Valuable papers	
	$10 million	Personal property of others	
	$10 million	Errors and omissions	
	$5 million	Piers and wharves	
	$5 million	Utility services	
	$5 million	Fine arts	
	$5 million	Covered property in transit	
	$2.5 million	Covered property overseas	
	$1 million	Outdoor property including debris removal	
	$1 million	Personal effects of employees and officers	
	$1 m/$2m 5%	Green Buildings Increased Cost per occurrence/aggregate 	
	$250,000	Pollutant Cleanup – aggregate in any one policy year	
	$100,000	Limited fungus, wet rot and dry rot; direct damage only; aggregate	
	$50,000	Claim data expense	
	$5,000	Personal property of students - $500,000 aggregate per year	
	for 60 days	Ingress and egress	
	Included	Business income, rental value, extra expense	
Valuation	This is a replacement cost (no depreciation) policy with a few exceptions.
However, the policy will not pay more on a per loss basis than the lessor of:
•	The actual cost to repair, rebuild or replace – at the same site with other property of comparable size, material, quality and function; or
•	The limit of insurance reported by the agency to Risk Management Division at that location.
A loss will not be paid until the property is repaired, replaced or rebuilt.	
	
Covered perils and exclusions	This policy pays for direct physical loss or damage to covered property at reported locations subject to certain exclusions.  The major exclusions are listed here, but are not all inclusive.
•	Theft from the interior of a motor vehicle or a pickup bed where signs of forced entry do not exist
•	Electrical injury or disturbance unless a surge protector was installed to protect the installed equipment from electrical injury
•	Nuclear hazard, war, military action, certified acts of terrorism
•	Computer virus, programming errors or omissions
•	Collapse of buildings, unless caused by “specified causes of loss”
•	Wear and tear or depletion
•	Rust, corrosion, erosion, fungus, decay, deterioration, wet or dry rot, mold, hidden or latent defect or any quality in the property that causes it to damage or destroy itself
•	Settling, cracking, bulging or expansion
•	Nesting or infestation or discharge of waste products or secretions by insects, birds, rodents or other animals
•	Mechanical or machinery breakdown
•	Dishonest or criminal acts of insureds and employees
•	Rain, snow, sand, dust, ice or sleet or property in the open
•	Discharge of pollutants unless discharge itself caused by a covered peril
•	Voluntary parting of property
•	Accumulated effects of smog, smoke, vapor, liquid or dust
•	Continuous or repeated seepage of water occurring over 14 days or more
•	Audit or inventory shortage
•	Faulty, inadequate or defective planning, zoning, development, surveying, siting, design, workmanship, repair, construction, renovation remodeling or maintenance.	

	
Vacant property 
coverage limitation	When 90% or more of the square footage of an entire building is not rented or used to conduct customary operations for more than 60 days, the building is considered vacant and there is reduced coverage.  Vacant buildings are not insured for vandalism, sprinkler leakage, building glass breakage, water damage, theft or attempted theft.  Buildings under active construction or renovation are not considered vacant.	
		
Outdoor property coverage limitation	Outdoor property is covered only for losses caused by fire, lightning, explosion, riot or commotion, vandalism or malicious mischief or aircraft and vehicles.	
	
COVERED PROPERTY	
	
Buildings and Structures Eligible for Coverage
The following types of structures are eligible for coverage under this property policy, but each single structure must be specifically scheduled with RMD before property insurance is effective.
•	Buildings - including their ongoing additions and renovations, building fixtures, permanently attached machinery and equipment, and outdoor fixtures that are within 1000 feet of the building.
•	Outdoor fixtures 
•	Unattached sheds and outbuildings
•	Gazebos
•	Shelters
•	Restrooms
•	Mobile structures in place for more than 90 days
•	Piers and wharves	Buildings and Structures NOT Eligible for Coverage
•	New buildings under construction
•	Buildings the State does not own, unless a lease requires the State to insure the building
•	Buildings or structures that Risk Management Division deems uninsurable due to their condition.
•	Bulkheads, pilings, docks, dikes, dams, canals, sea walls and vehicular bridges	

	
Business Personal Contents Eligible for Coverage
The following categories of contents are eligible for coverage under this property policy. Locations must be specifically scheduled with RMD before property insurance is effective.
•	Furniture such as desks, filing cabinets, shelving, removable room partitions, chairs, tables, appliances, bookcases, coat racks, and beds.
•	Fixtures not permanently attached
•	Tenant improvements and betterments
•	Electronic processing equipment such as desktop computers, laptops, servers, printers, specialized equipment
•	Machinery and equipment such as fax and copy machines, portable generators, air conditioning and heater units, automotive equipment, laboratory or hospital equipment
•	Stock
•	Fine arts
•	Outdoor property within 1000 feet of a building
•	Other business property such as tools, books, papers, televisions, vcrs, projectors, tapes, videos, office and medical supplies, publications 
•	Student property (under certain conditions)
•	Property of employees when used in the course and scope of business with a supervisor’s prior knowledge and permission and in accordance with union contracts and State policies and procedures.
•	Property of others for which the State has agreed in writing to insure prior to any loss	Property and Costs not Covered
Items in italics may be specifically insured (upon request) on policies other than the property policy.  Other items are not insurable.
•	Vehicles, trailers or self-propelled machines that are licensed for use on public roads OR are operated principally away from the insured premise.  This includes construction equipment, snowmobiles and all terrain vehicles
•	Aircraft
•	Watercraft
•	Currency, deeds or other evidences of debt, money, notes, checks, drafts or securities
•	Water
•	Land, land improvements, grain, hay straw or other harvested crops while outside buildings, growing corps or standing timber
•	The cost of excavations, grading, backfilling or filling
•	Live animals or birds
•	Bulkheads, pilings, piers, wharves, docks, dikes, dams, canals, sea walls or vehicular bridges
•	Underground tanks, pipes, flues, drains or tunnels, all whether or not connected to buildings, mines or mining property
•	Any electronic data processing equipment which is obsolete or unused by the State	

Summary as of 07/01/2012