Web Content Viewer

Statewide Property Insurance Program

The Office of Risk Management administers the statewide property insurance program covering loss or damage to state owned buildings and assets. Participation in the program is mandatory for all state agencies, boards and commissions who own tangible assets.

Types of property insured include but are not limited to:

  • State owned buildings, including fixtures and machinery.
  • State owned assets located in state owned buildings, or within 1,000 feet.
  • State owned vehicles (on-premises only).
  • State owned assets located in non-state buildings (by request).
  • Outside property, including landscaping, trees and shrubs.
  • Communication towers and water towers.
  • Above ground storage tanks.
  • Underground storage tanks, pipes and tunnels.
  • Property of others in the care, custody and control of the State, for which the State has agreed in writing to provide insurance.

What is covered

The policy provides all-risk, replacement cost-coverage for physical loss or damage to real and personal property, subject to specific exclusions. Types of losses include, but are not limited to:

  • Fire, wind, water damage, explosion, earthquake, flood, vandalism/malicious mischief, riot or civil commotion, flood, theft or attempted theft, lightning, electrial surges or utility interuption, terrorism.  

Coverage Limits and Deductibles

The full policy is available for download under the Documents section of this page.

  • Policy Limit: $350,000,000 per occurrence
  • Deductibles:
    • Standard policy deductible: $250,000
    • MARCS Towers: $50,000
    • Governor’s Residence: $10,000
    • BWC, DAS, DMA, DRC, DVS, EXP: $500,000

Requirements for reporting property to be insured:

  • Agencies must provide a listing (Statement of Values) of all above ground structures that are owned.
  • Vacant buildings must be identified to preserve coverage. Vacancy is defined as mothballed and not used for any purpose, including storage, for a period exceeding 60 days.
  • Underground tanks, sanitary lift stations, water treatment plants, or tunnels must be listed for insurance to apply but coverage is not mandatory.
  • Agencies that rent office space in non-state buildings can also choose to purchase insurance for their owned assets at the non-state location.
  • The ORM requires certification of the SOV (statement of values) once a year; however, any high value additions, new construction or newly acquired property should be reported during the year.

Why is coverage required? 

The insurance requirements under the Stafford Act apply per building and per hazard. Failure to insure each building may reduce or eliminate the funds available through FEMA for a presidentially declared emergency. FEMA funds typically pay for insurance deductibles, as well as for uninsured losses to infrastructure such as roads and bridges. The process for applying for and receiving FEMA funding requires presenting all insurance information, including a statement of values showing each building, the insurance that applies to each building, statements of loss and documentation of all insurance proceeds received.

Reporting Losses

All sudden, unexpected damage to state property should be reported immediately to the Office of Risk Management through the portal. The insurance policy is a contract with the insurance company. Timely reporting of losses is required in the terms and conditions.

  • The ORM and the insurance company will determine if a loss should become a claim and which deductible would apply.
  • Hidden or additional damage may be discovered later. If the loss was not reported, recovery may be reduced or denied.
  • The insurance company has the right to inspect the damaged property.
  • The insurance company has the right to the salvage if they issue a replacement cost payment for a claim.
  • If the loss involves multiple structures, multiple agencies within the same structure, or a declared weather event affects multiple agencies/locations, the deductible will be allocated among all affected agencies or buildings.
  • Other costs such as loss of income, preservation of property, emergency response, payroll, cleanup, etc., would apply to the deductible. The ORM needs to work with the agency from the time of the event to ensure all eligible expenses are included in the claim.