Kentucky Administrative Regulations › Title 702 - EDUCATION AND WORKFORCE DEVELOPMENT CABINET - BOARD OF EDUCATION, DEPARTMENT OF EDUCATION - OFFICE OF DISTRICT SUPPORT SERVICES › Chapter 3 - School Administration and Finance › Section 702 KAR 3:030 - Insurance requirements

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO: KRS Chapter 45A, 160.105
NECESSITY, FUNCTION, AND CONFORMITY:
				KRS
				156.070(4) authorizes the
				Kentucky Board of Education to promulgate administrative regulations necessary
				for the efficient management, control, and operation of the schools and
				programs under its jurisdiction.
				KRS
				156.070(5) requires the
				board to promulgate administrative regulations relating to programs, services,
				publications, capital construction and facility renovation, equipment,
				litigation, contracts, budgets, and all other matters which are the
				administrative responsibility of the Department of Education.
				KRS
				160.105 requires the board to promulgate
				administrative regulation requiring each school district to provide for fire
				and extended insurance coverage on nonsurplus buildings, at not greater than
				replacement cost but allowing for coinsurance and deductible features. This
				administrative regulation establishes requirements for the level of insurance
				coverage needed for school district buildings and structures.
Section 1.
(1) A local board of education shall procure
			 insurance coverage, which reflects the estimated replacement cost, actual cash
			 values, and the amount of fire and extended insurance coverage provided for
			 each building and its contents owned by the local board of education which is
			 not surplus to its needs as shown by the approved facilities plan.
(2) A building and its contents shall be
			 insured for an amount equal to 100 percent of the replacement cost as shown on
			 the schedule of values certified by the Kentucky Department of Education or as
			 determined through a certified replacement cost appraisal of the building and
			 its contents performed by an appraiser experienced in appraising commercial or
			 governmental property and licensed to perform appraisal services in Kentucky
			 pursuant to
			 KRS
			 324A.045, and each policy covering the
			 buildings and contents shall provide an agreed amount endorsement.
(3) The replacement cost of the building
			 shall include the increased cost of construction brought about by code changes
			 that have occurred since the original structure was built and which would be
			 required to be incorporated within the rebuilt structure.
(4) The following minimum sublimit shall be
			 required:
(a) Ordinance and law -
			 $5,000,000.
(b) Debris removal -
			 $1,000,000.
(c) Extra expense -
			 $5,000,000.
(5) Despite
			 the required insuring of individual buildings and contents at 100 percent of
			 replacement cost, a blanket limitation on an insurance carrier's liability per
			 occurrence may be procured if:
(a) An
			 individual district's schedule of values exceeds $100,000,000; and
(b) The blanket limitation equals at least
			 $100,000,000 and at least fifty (50) percent of total replacement costs.