Third-Party Property Coverage

Personal property

The State does not cover personal property.  This includes personal property owned by faculty, staff, and students. 

Faculty/Staff property

There is no coverage for personal property that an employee may bring to work such as computers, artwork, books, etc. 

Student property

The State does not insure personal property of students living on campus.  Students are encouraged to purchase renters insurance.  Parent’s homeowners insurance may cover property owned by the student living on campus.  Per Residence Hall Conduct Handbook, Appendix I Section D: “The University and hall staff assumes no responsibility for loss, theft, or damage to personal belongings in or on residence hall property.  This policy extends to resident rooms, storage areas, auto and bicycle lots, and all other residence hall areas.  Residents are advised to carry homeowner’s or renters’ insurance coverage on their personal belongings”.

However, if the individual incurring the loss believes his/her loss or damage resulted from NAU negligence, then the individual may submit a third-party liability claim (Notice of Claim Against the State of Arizona form) in accordance to applicable Arizona statutes for claims against public entities (A.R.S. §12-821.01).

Borrowed, leased, loaned, or rental property

The State covers personal property (not owned by the University) that is within the University's care, custody, and control due to a written lease, contract, or agreement finalized prior to the loss (A.R.S. §41-621.A.4).  An authorized NAU individual with signature authority must review and sign the written lease, contract, or agreement.  This applies to all personal property borrowed, loaned, rented, or leased for University business. 

When personal property is damaged or stolen, the responsible NAU department/employee must either contact the local law enforcement agency to file a police report (for losses due to criminal damage or theft), or fill out the NAU on-line Damage Report (for non-criminal losses).  The owner of the property must file a third-party property liability claim (Notice of Claim Against the State of Arizona form) for damages with the Arizona Attorney General's Office and State Risk Management.  State Risk Management will require the following supporting documentation for all third-party claims filed:

  • copy of the written lease, contract, or agreement (if applicable)
  • notice of Claim Against the State of Arizona form (contact Property & Liability Insurance Services for form)
  • photographs of the damaged property
  • copy of the Police Report or Damage Report
  • inventory Form (contact Property and Liability Insurance Services for form)
  • two estimates to repair or replace the damaged/stolen property

Personal property required on the job

The State covers personal property, except vehicles and computers, which a University employee is required to bring to the job as a condition of employment with the University (Arizona Administrative Code R2-10-102.D.4).  In such cases, the employee’s job description must stipulate the requirement to use personal property on the job.  The employee and supervisor shall submit an inventory list (specifying description of property, make/model/serial numbers, date of purchase, and condition of property) to Property and Liability Insurance Services prior to the loss.  State Risk Management shall insure personal property that is under the clear responsibility of the University.

For more information on Third-Party Property Coverage, contact the Insurance Officer with Property and Liability Insurance Services, at (928) 523-2009.