UC Property Loss Claim
The University Property Insurance Program covers loss or damage to UC owned property or property on loan to the University and in its care, custody and control. This section explains steps that should be taken to deal with loss or damage to covered property and how to file a claim with the UC Property Insurance Program to pay for loss or damage.
Report Loss Immediately
- Use a Property Loss Report to report loss or damage to the UCSB Risk Management office within 3 business days of the loss (see Claim Filing Deadline below):
- Departments may instead report loss or damage to the University Claim Hotline at 800.416.4029.
- If the loss is the result of theft, vandalism, or any other criminal activity, contact campus Police immediately.
Prevent Further Damage
- Take whatever steps are necessary to prevent further damage to University property.
Managing Property Loss Claims
- Take as many photos as necessary to make a complete photo record of (1) the cause of loss and (2) the property that has been damaged.
- Retain and preserve all evidence, do not discard anything that is loss related. Contact Risk Management if this is not possible.
- All costs to repair or replace property that will be part of the insurance claim must be supported by documentation. Retain all purchase orders, contracts, invoices, timecards, receipts, etc. showing proof of purchase of goods, services, labor, and materials.
- All ancillary work that has been performed as a result of a loss for which a department is seeking reimbursement, i.e. overtime pay, relocation costs, etc., must also be documented with POs, contracts, invoices, work orders, timecards, receipts, etc.
- It will be necessary to submit documentation that proves the damaged property belongs to the University (copies of original POs, invoices, receipts, etc.). If the property does not belong to the UC, but is on loan to the University and in its care, custody, and control, submit any agreements, MOUs, and/or contracts that document the terms and conditions under which the University has assumed responsibility for the property.
- Coverage under the UC Property Insurance Program is subject to exclusions and deductibles.
- The UC Insurance Program only pays for property or materials of “like kind and quality”. If it is necessary to replace property that has been lost or damaged, the insurance program will not pay for betterments or technological improvements. Submit sufficient information to establish that the replacement property is “like kind and quality”. In the case of equipment this can be done with a line-by-line comparison of equipment capabilities. Departments can replace lost or damaged property with property that is NOT “like kind and quality” but, if they do, they will have to find funding other than the Insurance Program to pay for betterments or technological improvements.
- If a department chooses not to replace damaged property, but wants cash instead, the Insurance Program will pay “actual cash value” only (replacement value minus depreciated value).
- In some cases it may not be possible to repair damaged equipment. When that is the case, the Claims Administrator may ask the department to obtain a written report from a third party vendor stating that repair is not practical or cost effective.
Documenting a Property Loss Claim
How a property loss claim is documented will determine how quickly it is processed and how soon it is paid. The steps described below, in particular the use of Claim Form #1 and Claim Form #2, are intended to provide a means for departments to organize their claim submittals in a manner that facilitates their evaluation and reimbursement.
CLAIM FOR LOSS OR DAMAGE AT A SINGLE LOCATION
Property loss claims arise out of a cause of loss, i.e. burst water pipe, theft, graffiti, falling tree branch, fire, etc. Most of these losses occur in a single location, i.e. a lab, a classroom, an office, etc. Follow the steps described below to file a claim for property loss or damage at a single location.
- Use Claim Form #1: Loss/Damage at Single Location to document property loss claims that arise out of loss or damage to University-owned property (or non-owned property in a department’s care, custody and control) at a single location.
- Submit the following information on Claim Form #1:
- Row 1. Submittal Date: date claim is submitted along with all supporting documentation
- Row 2. From: Contact Name and Department of department submitting claim
- Row 4. Loss Location: building name, room type (classroom, lab, hall, etc.) and room number
- Row 5. Building No: UCSB building number
- Row 6. Insurance Claim No.: assigned insurance program claim number
- Row 7. Loss location ID No.: not applicable to loss that occurs at a single location; use when losses occur at more than one location
- Row 8. No. of Loss Locations: not applicable to loss that occurs at a single location; use when losses occur at more than one location
- Row 9. Date of Loss: date that loss or damage occurred
- Row 10. Cause of Loss: description of what caused loss or damage
- Row 11. Loss Description: list and describe what was damaged
- Col. A. Dept. Info.: for use by department making claim
- Col. B. Reimb. Acct. No.: Department account number from which payments made
- Col. C. Attmt. No.: all supporting documentation must be labeled on its face
- Col. D. Document Type: POs, contracts, invoices, timecards, receipts, etc.
- Col. E. Provider Name: name of company from whom goods, services, materials obtained
- Col. F. Description of Goods/Services/Labor/Materials: describe what was purchased
- Col. G. Cost: goods, services, labor, materials
- All costs must be supported by documentation. All supporting documentation must be labeled with an Attmt. No. and be attached to Claim Form #1.
- Claim Form #1, and the supporting documentation comprises a complete claim submittal for loss or damage at a single location.
- When a single loss event causes loss or damage to property belonging to different departments, e.g. Facilities Management and another department, each must complete and submit its own Claim Form #1.
CLAIM FOR LOSS OR DAMAGE AT MULTIPLE LOCATIONS
Sometimes a single cause of loss, for example a rainstorm or a case of graffiti vandalism, can be the cause property loss at more than one location. The UC Property Insurance Program will cover loss or damage at more than one location as a single claim, with a single deductible, if it is caused by a single cause of loss like a rainstorm or graffiti vandalism.
- Use Claim Form #2, together with as many Claim Form #1 forms as there are separate locations, to document a property losses occurring at more than one location are caused by a single cause of loss, for example a rainstorm or graffiti marking.
- The purpose of Claim Form #2 is to aggregate costs documented on separate Claim Form #1 forms.
- Claim Form #2, together with the associated Claim Form #1 forms and their supporting documentation, comprises a complete claim submittal for a single loss occurrence that causes loss or damage at multiple locations.
- When more than one Claim Form #1 is used (in order to document loss or damage at more than one location), the supporting documentation needs to be labeled with (1) a Loss Location ID No. (Row 7) and (2) an Attmt. No. (Col. C). Thus Location 1 supporting documentation might be labeled 1A through 1G, Location 2 supporting documentation might be labeled 2A through 2M, Location 3 supporting documentation might be labeled 3A through 3C, etc. The number represents the specific loss location and the letter represents the attachment identifier.
Claim Processing & Payment
- A claims examiner from the University's Third Party Administrator, SedgwickCMS, will assign a claim number within 24-48 hours from the time a claim has been submitted and then contact the campus risk management office with further instructions.
- Risk management will coordinate claim handling with departments.
- Sedgwick will investigate the claim and determine if there is coverage under the University’s Property Insurance Program.
- If the damage is in excess of $15,000, Sedgwick assigns a claims adjuster to conduct an on-site inspection.
- If the claim is covered under the Property Insurance Program, SedgwickCMS will use the information submitted by the Department (see Sections above on how to document claims) to adjust the claim and determine the appropriate payment (minus the Deductible).
- Once Sedgwick has determined the claim payment, it will issue a Statement of Loss for review and approval by campus Risk Management and the department that experienced the loss.
- After UCSB approves the Statement of Loss, Sedgwick sends notice to OP Risk Services authorizing payment.
- OP Risk Services transfers the approved funding to UCSB B&FS General Accounting.
- B&FS General Accounting credits the department account with the funded amount using Fund Number 75550 (Insurance Reserve-Property).
- This credit then appears in the department’s ledger.
- The department must spend the funds out of the account fund in the ledger where they were deposited.
Transit Loss Claim
- The Property Loss Report and the Transit Risk Loss Report can be used to report losses that occur while property is in transit.
- Report the damage to the shipper immediately and send the shipper a letter putting them on notice that your shipment was damaged in transit. Ask the shipper when they will send someone out to investigate.
- If the packaging is damaged when it arrives, take photos of the damaged packaging and take additional photos as you unpack the contents showing the “layers” of damage.
- Retain the packaging and all the shipping documentation.
- Retain and preserve all evidence, do not discard anything.
- Use Claim Form #1: Loss/Damage at Single Location to document transit loss claims.
Claim Filing Deadline
Claimants are asked to report losses within twenty-four (24) hours, and no later than 3 days after a loss. Supporting documentation can be provided as it becomes available. Property loss or damage reported more than 12 months after the date of loss may not be covered.