Property Conference Protecting the State of Texas How to Obtain a Quote? Property Conference Protecting the State of Texas

Application Process www.sorm.state.tx.us SORM’s Website Application Contents Only Schedule Property Insurance Schedule www.sorm.state.tx.us

Application Contact Information General Information Questionnaire Loss History (Last 5 Years) Prior Insurance Carrier Information (3 Years) Description of Agency’s Operation Contact Information – Please put a Person of Contact who will be servicing the policy at each renewal. We will need this information just in case questions arise on the application. General Information Questionnaire – The application asks for some general pre-underwriting questions such as safety programs in place, fire exposures, any type of crime of fraud, bribery, or arson to report. Loss History – We are asking for either the “Loss Run” report from your current carrier if you currently have insurance. If you do not have property insurance, any losses that you have had to your building in the past 5 years i.e. hail damage, wind, water damage from HVAC system. If you do not know this information, your Buildings Facility Manager may know this information. So what is the reason for gathering your Loss History? --The underwriters are wanting to know if your losses have been addressed. If you have had no claims in the past five years, please report that on the application. Prior Insurance Carrier Information: If you currently have property insurance, we will need you to report the insurance carrier’s that have insured your property for the last 3 years. Description of Agency’s Operation: Please give a general description of what your agency is mandated to oversee along with your website.

Contents Only Schedule The purpose of this exercise is to recognize and track the items owned by your agency. On that note, we do recommend you update this list annually and if you are part of the property program we do ask to review your schedule annually for accuracy. With this exercise, you are able to determine an amount of contents to schedule to your policy, we do not ask that you submit this entire list for quoting purpose only the dollar value. In the past, we have had many agencies fill this list with the list given to them by the Comptroller from the State Property Accounting System. This list provided by the Comptroller is the entire list of all property owned from your agency but gives the dollar value of what you paid for it say 20 – 30 years ago. It is important that you put a dollar amount of what that item would cost to replace today. HOW DO WE GATHER THIS INFORMATION? My best recommendation is to delegate, delegate, delegate… Ask for the support from your Executive Director to go around your agency gathering this information and work with the heads of each department. Serial Numbers: So if you have looked at your State Property Accounting System list, you may noticed there is an asset number attached to each item. This is not the same as serial number required for this contents schedule. That being said, all your electronic should have a “serial” number and this information should be documented somewhere within your IT department.

Property Insurance Schedule Example of SORM: Agency Name – State Office of Risk Management Sub Agency Name - SORM SORM Agency # - 479 Location # - 1 Arthur J Gallagher Building # - N/A Agency Building # - 1 Description – William P. Clements Street Address – 300 W 15th St., 6th Floor If occupy only one floor of the building, please put that in your street address. If you are a University – Agency Name – University of Houston Sub Agency Name – UH Downtown SORM Agency # - 759 Location # - leave blank AJG Bldg. # - leave blank Agency Bldg. # - 1234A Description – Arts Building Street Address – 1234 Arts Street

Property Insurance Schedule Where do I find my Latitude and Longitude? -www.geocoder.us Tier 1, 2, 3 – This identifies by county the exposure a building may have in regards to weather-related losses with potential for catastrophic hurricanes and other types of windstorms in counties that border the Gulf of Mexico. These areas have been designated by the Commissioner of Insurance. If you do not know what tier your county sits in, on the next slide you will a color coded view of the different tiers. Latitude and Longitude: For COOP purposes, please provide the decimal points NOT the degrees. Content Value – Include the value you calculated on the other spreadsheet for this column. Time Element Value In the past we have had many questions about Time Element Value? So what is Time Element Value? So in the event you had to activate your COOP plan, you should have already chosen an alternate location on the TFC website. So you have alternate location, but have you thought about the expense involved with moving to the alternate location in the event you had to activate your COOP plan? --Two factors – Extra Expense & Business Interruption Estimate this value based on the time your building will be down, not on an annual basis. Building Value Accuracy Many of you all may be thinking – Have we evaluated our building value correctly? I would like to make note that the amount the city appraises your building for tax purposes, is NOT the amount it will cost to replace your building. Shortly, we will have American Appraisals speaking on the service they provide to our program – and how it benefits you to have your building appraised for “Building Value Accuracy”. Occupancy Type: Office, Classroom, Storage, Laboratory What is Time Element Value? What if my building value is not accurate?

Tier 1, 2, and 3 Counties

Property Insurance Schedule Where do I find this information? All the boxes highlighted in YELLOW have a drop down, to assist you with stating the type of occupancy for your building. Some of the options you have in the drop down are – Professional, Technical, and Business Services, Restaurant, College or University – you have a total of 54 options to choose from and at the bottom of the spreadsheet there is a tab called “ATC OCCUPANY CODES” that provide a detailed description for each of your option. ISO Construction determines the Fire class for the material used to construct the building. We are looking for this information to determine if you are greater risk for a fire loss. For the ISO Construction Type, you have another tab at the bottom of the spreadsheet that provides a description for each of your options in the drop down. If you are not sure, please consult with your Building Facility Manager or Leasing Manager who may be able to assist you with this information. RMS Construction Type: We are asking for more detailed information to the unique characteristics of your building. There is a drop down and a detailed description for each option at the bottom of the spreadsheet. If you have any particular questions on these columns, are Loss Control Engineers who gather some of this information during an inspection may be able to answer any additional questions you may have. Number of Stories – Total for the entire building although you may only occupy one floor. Gross Square Footage – We only need the square footage of the floor you lease NOT of the entire building. This is also what is required on your COOP plan.

Flood Zone Certificate Base Flood Elevation & First Floor Elevation RMS Estimated Flood Zone Elevation Reference Flood Zone Certificate New Requirement on SOV

Property Insurance Schedule Sprinkler System – You have a drop down that will provide you the options to elect the type of sprinkler system your building has…. Some options are Wet-Pipe, Dry-Pipe, Preaction Detection Alarm – Yes or No Fire Alarms – In this column, you also have a drop down for the different types of fire alarms your building may have. I would recommend consulting with your Building Facility Manager or the Leasing Manager to gather this information. Proprietary alarms are alarms which may be central station, but alarm indications go to somewhere within the entity, not to a separate alarm company. Building Manager would have the information on most up to date years on Wiring, Plumbing, and HVAC.

If you are in a Tier 1, 2, or 3 County…

BE AWARE!

Secondary Characteristics Construction Quality Roof Covering Year of Roof Installed Age of Roof Roof Geometry Roof Anchor Roof Equipment Hurricane Bracing Basement Appurtenant Structures Cladding Type Roof Sheathing Attachment Frame-Foundation Connection Ground Level Equipment Opening Protection Flashing and Coping Quality Content Grade If your building does fall into one of the Tier 1, 2, or 3 categories we ask that you complete the additional Secondary Characteristics that you see on this slide. We ask that you do not guess on this because this information that is provided to our underwriters lets them analyze the risk involved accurately. If it is incorrect, there is a potential for higher premium due to inaccuracy. So how do you get this information? A licensed engineer are the ones who are able to provide this information. If you are part of the property program, if a Loss Control Inspection is conducted at your site the engineers are able to gather this data for you at no additional cost. If you are not in the property program, American Appraisals who will be speaking shortly are able to gather some of this data for you as well. If you have additional questions with regards to the secondary questions, please feel free to ask our engineers with Hartford Steam Boiler and AIG as well Lori Flemming with American Appraisals.

Sally Balderas, Insurance Manager State Office of Risk Management Email: sally.balderas@sorm.state.tx.us Phone: (512) 936-1483 State Office of Risk Management 300 W. 15th Street, 6th Floor Austin, Texas 78701