OSBIE’s property policy provides all risk insurance coverage arising from losses, except as specifically excluded. Coverage applies to property of every description that is owned, rented or leased by the board. It also provides coverage for property of others for which the board is legally liable, is obligated to insure or has assumed responsibility. OSBIE’s property policy also includes coverage for flood and earthquake. Coverage is subject to a policy deductible that is decided by the school board.
OSBIE does not assign values to the property we are insuring, we actually rate our property premiums on the basis of square footage which is reported to us annually. The limit of a loss is therefore determined at the time of loss and would represent the cost of repair or replacement of the building and/or contents.
Although the limit under this policy is Unlimited, we do have the following sub limits of liability within our policy for:
- $100,000 per limit, if scheduled; schedule must be updated every 5 years.
- $10,000 per limit, if not scheduled.
Valuable Papers: $100,000
Computer Media: $100,000
Land & Water Contaminant or Pollutant Cleanup, Removal & Disposal: $250,000
Professional Fees: $250,000
Master Keys: $50,000
OSBIE also offers the following property endorsements which can be purchased for additional premium:
Builder’s Risk Endorsement – In the event the school board decides to be the general contractor on a construction project or is required to carry the Builder’s Risk coverage, OSBIE will provide coverage, upon receipt of an amended Tender Contract that shows that the owner is required to carry Builder’s Risk. The board will also be required to update the property portal and provide details of the project. The premium charged is based on the value of the project, with a minimum premium of $1,000. The maximum project value that can be covered by OSBIE is $20 million.
Vacancy Endorsement – The board is required to notify OSBIE of the change in occupancy status of any property they own, rent or lease. This notification is even more important if the building is deemed “vacant” as there are coverage restrictions in your property policy.
A vacant building means any unoccupied premises owned, rented or leased by the board and includes unoccupied premises containing any contents.
Your property policy automatically permits buildings to be vacant without any change of coverage for a period of 12 months. After 12 months, coverage is amended, and any claim would be reduced to Actual Cash Value rather than Replacement Cost.
If the board wishes to retain replacement cost coverage for a site that has been vacant for more than one year, they can purchase this endorsement for an additional premium.
Deductible Buy-Down Property Floater:
Periodically, boards may be interested in lowering their property deductible for specific equipment for a specific period of time. OSBIE will consider these requests on a case by case basis and assess an appropriate premium for the risk.
- contents being stored off site
- coverage for artificial turf
- musical instruments
This endorsement does not apply to portable electronic devices such as laptops, iPads, etc.
Construction Projects – Insurance and Reporting
The OSBIE property policy includes a Reporting Requirement for Buildings Newly Acquired or Under Construction. We can categorize these projects into 3 types:
- Newly acquired or ground up construction– in either situation, the Board has an entirely new location to be added to your property schedule.
For a newly acquired building or construction project where there is additional square footage to be insured, it must be reported to OSBIE within 90 days of acquisition or the beginning of construction. Best practice for reporting to OSBIE is for the Board to notify OSBIE at or before the contract is awarded – whether or not OSBIE is providing the Builder’s Risk coverage. OSBIE provides excess coverage in the event that the Builder’s Risk coverage is inadequate. This provides added protection for the school board. OSBIE has an obligation to report all newly acquired properties and construction projects to its reinsurers in a timely fashion in order to arrange for reinsurance to protect the interests of all OSBIE property Subscribers.
- Capital Projects – includes any new construction, expansion or renovation that increases the square footage reported to OSBIE
The board is required to report to OSBIE any capital projects that increases the value of a facility by $100,000 or greater within 90 days of commencement of construction.
- Maintenance Work– these would include small projects or retrofits that do not add any significant capital enhancement to the building. There is no requirement to report these type of changes to OSBIE. An example for this type of project would be replacing a roof on a school.
Newly acquired buildings, new construction and capital projects should be reported to OSBIE through the OSBIE portal.