University of Virginia Library

Under the auspices of the Charlottesville Insurance Exchange, an engineering survey
of all University property has been made by representatives of the Automobile Insurance Company,
Home Insurance Company and the Royal-Liverpool Insurance Group. The recommendations of the Exchange
have been carefully reviewed by University representatives.

The values of the buildings seem to be reasonable in view of present construction costs.
The total value placed on our buildings by the engineers is $20,888,654. This compares with approximately
$9,000,000 value under our present insurance policies. The $20,888,654 is broken down
as follows:

It is our recommendation that we carry 30% of insurable value on all fire-resistive AAA
construction, that we carry 50% of value on ordinary construction other than sprinklered, and that
we carry 90% on the sprinklered construction, the 90% on the sprinklered buildings being required
by insurance regulations

Thus our insurance would be as follows.

The total cost of the new schedule as compared with the old schedule as is follows,
using three-year premium rates:

At the time we were preparing our biennial budget requests last fall, preliminary
data were secured from the insurance people so that additional money could be provided in the
University budget to cover this insurance. Request was made in the biennial budget, and sufficient
money has been appropriated to take care of the additional insurance

The cost figures quoted above do not include any insurance on equipment located in
University buildings. The engineers making the survey said they were not qualified to evaluate
our technical equipment. It was their recommendation that the University inventory this equipment
and revise its present insurance.

President Darden and I have discussed this matter and we believe the insurance should
be confined to fixed equipment installed in the several University buildings. We plan to solicit
the assistance of the faculty and research staffs in arriving at appropriate values for
scientific and technical equipment.