The Comprehensive Property Protection Plan (CPPP) was established in 1995 as a means of financing catastrophic property losses for The University of Texas System (the UT System) and its Institutions. In 2002, the program was restructured due to a hardened insurance market and adverse loss experience in 2001 from Tropical Storm Allison.
The CPPP consists of two programs:
- The Fire and All Other Perils Program (Fire and AOP), subject to the terms, exclusions, limits and conditions of the commercial insurance policy, insures against risks of direct physical loss of, or direct physical damage to, the UT System property. A funded reserve is in place to cover the policy deductible.
- The Named Windstorm and Flood Program (Wind & Flood), subject to the terms, exclusions, limits and conditions of the commercial insurance policy, likewise insures against risks of direct physical loss of, or direct physical damage to, the UT System property caused by named windstorm and or storm surge flood events. The Wind and Flood deductible is supported by a funded reserve and a mechanism to issue debt.
