After tremors rumble Kansas campuses, Board of Regents universities review earthquake insurance plans
In light of recent rumblings — literal rumblings — on some campuses, Kansas Board of Regents universities are taking another look at their earthquake insurance coverage.
Leisa Julian, University of Kansas vice chancellor and chief financial officer, reported during this month’s Regents Council of Presidents meeting that she and other university CFOs decided to review the earthquake insurance coverage “as a due diligence matter.”
The Regents as a system purchased $1 billion worth of property insurance, with coverage of $100 million for the peril of earthquake, she said.
Adding another $100 million in earthquake coverage would increase the premium payment by $44,000 a year, Julian said. The Regents already pay more than $2 million a year for property insurance coverage, she said.
A risk-management analysis determined Kansas to be at low risk for earthquake damage, Julian said. She said most other Big 12 universities also have $100 million to $150 million in earthquake coverage — with the exception of the University of Oklahoma and Oklahoma State University, which both carry $350 million in coverage.
The chief financial officers have taken the matter under advisement for now, Julian said at the Dec. 14 meeting.
Of all stakeholders in the room, Wichita State University President John Bardo was the most vocally supportive of potentially upping coverage.
“I would encourage us to think seriously… we feel them regularly,” Bardo said, adding that he was shaken for a good 20 seconds while lying in bed on a recent Saturday morning in Wichita.
Bardo said that while $100 million may seem like a lot, that’s for the whole system.
“It only takes one big building,” he said.
At least two earthquakes were felt in Douglas County this fall.
The first was Sept. 3, when a 5.6 magnitude earthquake in north-central Oklahoma was reportedly felt all the way from North Texas to Nebraska. On Nov. 25, a 4.3 magnitude earthquake struck northern Oklahoma and was felt in parts of Kansas.