Required Coverage for Schools is AMLJIA Standard
The local school is the heart of many Alaskan communities. It provides a place for education, enrichment, sports, community gatherings and much more. It also is often the most valuable property in the community. Alaska Statute 14.03.150 requires all school districts to “purchase and maintain or provide proof of adequate property insurance for the replacement cost of all school facilities and equipment.” The Alaska Administrative Code further states:
(a)…a district shall comply with AS 14.03.150 by maintaining all risk property insurance coverage for the replacement cost of all school facilities and equipment. A district shall carry flood coverage for school facilities and equipment in a flood plain or flood-prone area. The coverage shall include necessary code upgrade costs and additional extra expenses incurred by a district carrying on routine operations during a period of repair or replacement of the school facility and equipment.
(b) A district shall carry insurance that provides for the full replacement cost of all school facilities damaged or destroyed, and may be written on a loss limit basis, limited to the maximum probable loss per occurrence of any school facility clusters. Equipment shall be insured for its full replacement cost, but a school district may insure equipment for its depreciated value or actual cash value if the equipment is more than 10 years old. Any loss not within the mandatory insurance requirements of this section shall be borne by the district.
(c) In addition to the requirements of (a) and (b) of this section, an insurance policy purchased by a regional educational attendance area for any school facility or equipment owned by the state shall include
(1) the state as an additional insured;
(2) earthquake coverage; and
(3) flood coverage, regardless of whether the school facilities or equipment are in a flood plain or flood-prone area.
(d)In this section,
(1)“code upgrade” means upgrades required by applicable building and fire codes or other law for the occupancy of the school facility;
(2)“flood plain” or “flood-prone area” has the meaning given in 44 C.F.R. 59.1 (Oct. 1, 1996);
(3)“replacement cost” includes all costs associated with replacement of the facility including construction management, design, equipment, technology district overhead, and art costs under AS 35.27 necessary to insure that the facility is fully operational at no additional cost to the district.
AMLJIA members will be glad to know that the AMLJIA property policy for both schools and municipalities meets these requirements. In fact, the AMLJIA has been providing replacement cost coverage on scheduled property since its inception. In addition, all AMLJIA risk control specialists regularly conduct property appraisals at no cost to the member. Our staff utilizes industry-recognized Marshall & Swift software to prepare all appraisals which then receive a final review by the Appraisal Company of Alaska to ensure accuracy. All property values are reviewed annually to give you peace of mind knowing that if a loss should occur, your facility is fully covered.
Your AMLJIA risk control specialists are available to help you review your property schedule to make sure you have coverage in place for all of your properties, and to make sure you aren’t insuring a building you may have sold or transferred to another entity. You can contact your broker or call your risk control specialist at 800-337-3682 to request a copy of your property schedule or for assistance reviewing your schedule.
AMLJIA’s replacement cost coverage and Alaska school districts work hand in hand to ensure the success of the next generation of Alaska’s leaders.
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