With the economy in a downturn and real estate prices down, many colleges are taking advantage by purchasing cheap land for expansion. University of Dayton in Ohio, University of Delaware, and Columbia University are just some examples. Colleges realize that investing in real estate may be risky but some say “the benefits outweigh the risks.” (Source: http://newstalkradiowhio.com)
From an insurance perspective, universities need to know what it is that they are buying. As the new owner, they are likely inheriting potential legacy environmental liabilities. This is especially true if the sites being purchased were historically industrial properties. Pollution coverages could limit these potential risks and liabilities by protecting the owners from future claims related to any discovery of legacy environmental exposures.