Shapiro administration won’t say if insurance will cover mansion repairs

Two insurance plans cover the residence, but it’s unknown if they’ve covered anything already or how much will ultimately be covered.

ANGELA COULOUMBIS
Spotlight PA

HARRISBURG — The stately governor’s residence along the banks of the Susquehanna River in Harrisburg is insured under two plans, but Shapiro administration officials will not say how much in repairs the policies are expected to cover following the brazen arson attack earlier this year.

Those repairs have so far cost just over $6 million in taxpayer dollars. The Shapiro administration has shielded information about nearly a quarter of those expenses — including what the money was spent on, and in some instances, even who was paid for work there — saying it could endanger the safety of people, buildings, or other infrastructure.”

The state Department of General Services (DGS) is overseeing the restoration work at the residence, and agency spokesperson L. Paul Vezzetti said in an email that “significant progress has been made.”

Still, the agency and other state officials have steadfastly refused to say how much they expect the restoration and repairs to cost, noting the work is not finalized.

The residence, Vezzetti said, is covered by two insurance plans. He would not say if insurance has covered anything already or how much the agency expects will be covered when all is said and done.

Like other state-owned property, the 29,000-square-foot mansion is covered under the State Insurance Fund. The fund is a self-insurance policy — state agencies pay into it annually based on the extent of their covered assets — and it provides coverage for losses caused by fire, flood, vandalism, and other “perils,” according to the DGS website.

The fund covers losses up to $1 million, and claims must be filed within one year of the incident. There are no deductibles under the State Insurance Fund, with one ex- ception — in instances of theft, where there is a $5,000 deductible.

For losses exceeding $1 million, another plan, this one managed by a private insurer, kicks in. The insurer, FM Global, provides coverage of up to $1 billion per incident, Vezzetti said. It has a $1 million deductible, which is payable from the State Insurance Fund, per DGS.

The state pays for repairs up front, then seeks reimbursement through the applicable policy, officials said.

However, the DGS website notes that claims paid from either policy are made “under the premise of repair, replace or restore to like-condition at the time of the loss.”

“Improvements or betterments are not covered,” it says.

It’s unclear if security upgrades planned for the residence would be considered reimbursable expenses.

There is another pot of money that the administration can use for repairs not covered by insurance. But for the time being, it’s shrouded in mystery.

Following the arson, private donors contributed money to a fund managed by a Harrisburg-area nonprofit, Team Pennsylvania (also known as Team PA), which does not make the identity of its donors public. That fund raises money for the governor’s residence.

Team PA and the administration have declined for months to say who contributed money for repairs, and what that money will pay for.

A Shapiro spokesperson has said state officials intend to release a list of donors to the fund in the future, though it is unclear when or how detailed the disclosure will be.

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