FY04 Increase in Property Insurance Deductible for Schools and

FY04 Increase in Property Insurance Deductible for Schools and Departments
Effective July 1, 2003 all property insurance claims submitted by
University schools and departments will be subject to a $5,000 per
occurrence deductible. This means that schools and departments will have
to pay the first $5,000 of any loss or damage (occurrence) to property
caused by fire, water damage, theft or vandalism before insurance will
respond. This is an increase from the current $1,000 per occurrence
deductible now in effect.
The current $1,000 deductible for schools and departments has been in place
for over 15 years, going back to the time when the deductible on the
University's property insurance policy was $1,000. Since that time, there
have been dramatic changes to the University's property insurance program.
Due to worsening market conditions, premium costs have increased
exponentially, blanket limits have been reduced, and our policy deductible
has grown to $250,000. The University's out of pocket payments for
property losses have risen substantially during this period, and thus it
has become necessary to make this change.
Schools and departments will pay a higher share of the cost for each loss
or claim, but will remain sheltered from paying catastrophic costs above
their $5,000 deductible. Hopefully, each school and department will also
intensify efforts to control and prevent losses from occurring.
The increase in the school and department property insurance deductible
does not apply to vehicle accidents or losses, or liability claims or
losses. These will continue to have a zero deductible to schools and
departments during FY04. Also, it does not apply to moveable equipment
(computers, laptops, audiovisual equipment, cameras, laboratory balances,
etc.) scheduled on the University's floater insurance program. The floater
insurance program will continue to have a zero deductible for any claims
submitted by schools or departments. You can learn more about our floater
insurance program by going to our website, http://www.insurance.wustl.edu.
You should factor the $5,000 property insurance deductible for schools and
departments into your FY04 budget calculations and planning process.
Let me know if you have any questions.
Keith Klein
Insurance Manager
935-5547 (phone)
[email protected]