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Theft Buy Down Insurance FAQ

Summary: This page provides answers to questions about theft buy down insurance.

• What will be covered by insurance if my property is stolen?
• When is Theft-Buy-down insurance appropriate?
• Can the deductibles be reduced?
• How do I obtain Theft Buy-Down Insurance?
• How do I add items to or remove items from the Theft Buy-Down Insurance Schedule?
• How do I make changes to previously scheduled property?

What will be covered by insurance if my property is stolen?

To be covered under the University's All Risk Property Program all of the following must be true at the time of loss:

1. The property must have been owned or in the care custody and control by written agreement of the U.C. Regents.
2. The property has not been specifically insured under a commercial policy.
3. The theft must not have been caused by the dishonest act of any person to whom the covered property was entrusted.
4. The loss must not be an unexplained, mysterious disappearance, or a shortage discovered on taking inventory.
5. The property must not have been stolen from an unattended University vehicle while operated on University business unless the vehicle was securely closed and locked at the time of theft.
6. The theft must have been reported to the appropriate law enforcement agency.
7. The claim was submitted to the UCSC Risk Services Office within 60 days from the date of loss.

If these conditions are met and there are no other applicable exclusions then, in general, funding is provided based on replacement cost less the applicable deductible.

1. Forced entry theft deductible is $1,000.
2. Non-forced entry theft deductible is $5,000.

When is Theft-Buy-down insurance appropriate?

The appropriateness of theft-buy down insurance depends on a number of factors such as:

• The "theft sensitiveness" of the equipment being purchased - does the size, weight and shape of the equipment make it easier to steal, is the equipment valuable and/or a highly desirable item (computers and chemical balances), and will the equipment be used in a public or secure area.
• The value of the equipment to the units mission - is the equipment absolutely essential for research or educational purposes, or equipment that the unit could not do without.
• Equipment obsolescence - todays cutting edge PC will be "dumpster merchandise" in three years.
• The ability of a unit to pay for replacement equipment from its operating budget - "my computer may be three years old, but I dont have the money to replace it."

Can the deductibles be reduced?

The University has made available the Theft Buy-down Insurance Program provided by an outside broker and coordinated through the Office of the President, Risk Services Management and the UCSC Risk Services Offices. This additional insurance decreases the theft deductibles under the All Risk Property Program. The cost for this extra insurance is $.40 per $100 of value. Therefore property valued at $2,000 would cost $8 per year to add this insurance. Theft Buy-down insurance reduces theft deductibles as follows:

• The forced entry theft deductible of $1,000 would be reduced to $250.
• The non-forced entry theft deductible of $5,000 would be reduced to $1,000

Remember this is extra insurance. All property belonging to the UC Regents has insurance automatically without having to do anything and for most (not all) perils other than theft, the deductible is $1,000.

How do I obtain Theft Buy-Down Insurance?

There are only two requirements. The first is to ask by email (risk@ucsc.edu)for the Request for Additional Insurance and the Request for Cancellation of Additional Insurance forms, if your service center cannot provide them to you. In addition request that your attached property be added to the Theft Buy-down Schedule. Attach an Excel spreadsheet that contains eight columns with the following information:

1. Insurance Number (Left blank)
2. Department (Name)
3. FOAPAL Number (For recharge by Office of the President.)
4. U.C. Property Number (If applicable)
5. Serial Number (If applicable)
6. Description (Of property)
7. Value (Of property)
8. Premium (Left blank)

Please do not add columns, delete columns or change the order of the columns. If you are using anything other than Excel (5.0), please describe it in the email to which you attach your schedule.

The second requirement is that you complete and mail the original hard copy of the Request for Additional Insurance form to the UCSC Risk Services office. The form must be signed by anyone in your unit with the signatory ability to authorize recharges for insurance. Since the originals are required, your property will not be officially added to the Theft Buy-down Schedule until they are received. Once your request form arrives, an insurance number will be assigned for all of the property you have listed. A copy of your request form with the insurance number written at the top will be sent to you for future reference.

How do I add items to the Theft Buy-Down Insurance Schedule?

Adding property to your existing Theft Buy-down Insurance schedule is virtually the same as obtaining it for the first time.

1. Enter all the available information for the property you wish to add into the eight columns, discussed above.
2. In the column titled Insurance Number (Which you wont have as it has not been assigned one), type ADD in bold print.
3. Attach your updated schedule to an email message and send it to risk@ucsc.edu.
4. Complete the Request for Additional Insurance form and attach a print out of your additions. Put this in the campus mail to the Risk Services Office.
5. A new insurance number will be recorded on the top of your Request for Additional Insurance form and a copy mailed back to you for future reference.

How do I remove items from the Theft Buy-Down schedule?

1. In the column titled Insurance Number (Which should have been assigned), type 'DELETE' in bold print before the Insurance Number.
2. Attach your updated schedule to an email message and send it to risk@ucsc.edu.
3. Complete the Request for Cancellation of Additional Insurance form and either attach your list of items to remove or write it in. Put the signed original in the campus mail to the UCSC Risk Services office.

How do I make changes to previously scheduled property?

This is for changes to information of listed property that will remain on the Theft Buy-down schedule.

Make any changes you need in the computer spreadsheet application copy of the property your department keeps of scheduled items. Do not change the Insurance Number or the Premium. Once a year you will be sent a request to provide updates and or confirm that your current schedule is correct. Attach your modified spreadsheet to an email and send it to risk@ucsc.edu. At that time, the changes you have made throughout the year will be incorporated into the Theft Buy-down Schedule.