Hurricane Claims - The First 60 Days of the Long Road Back
A Useful Article
Please contact us for further information.
A Useful Article
Please contact us for further information.
Article
Hurricanes have become a big part of the end of summer ritual for people living in the southeast
with massive economic impact. These costs are counted in the billions of dollars and are felt by
industry, federal and state governments, business and home owners. For example the City of New
Orleans has in place a 7 million dollar contract to bus the residents of the Big Easy out of the city
at the right time before the loss. The economic impact of Katrina is in excess of a 100 Billion
dollars and still counting.
According to global weather studies we are in an era where more rather than less of these events
should be expected. The purpose of this report is to identify some of the sticking points in these
claims process based on my 15 years of working in the insurance restoration industry both as a
contractor and also as an expert/appraiser for insurers and owners.
Documentation
After the loss and the initial safety concerns are addressed, an immediate plan for the mitigation
of the loss and the documentation of the conditions is first and foremost. I suggest before the first
tree is cut off the building or the first temp roof applied that the property be photographed in full.
It is not unwise at this time to frame your photo within the neighborhood to establish that
surrounding properties are also equally affected. It is important to include landmarks in your
photo and then pictures with perspective and then up close with a date stamp. The pictures should
include the flood line with a tape measure from the finished floor elevation if one exists, and any
objects that impacted the structure or remain on the building prior to removal if possible. If these
photos can be digital, the ability to share them with insurers and others is greatly increased. Never
give to any person your original pictures. In addition it is imperative to have pre-storm pictures of
the contents and building prior to the loss in order to document the conditions at your property
especially in the case of a total loss or complete loss of the structure as was all too common after
Hurricane Katrina hit the Gulf Coast in 2005.
Mitigation
The second step is to mitigate the damages as required in most insurance policies. After a major
hurricane it may be some time before you will get the pleasure of a visit from your insurer. It is
up to you to have the financial ability to mitigate the loss or to keep it from becoming worse if
possible. The blue roof program from FEMA is an excellent method and at no cost for the individual
for complying with this requirement. In addition, to eliminating the water from further entering the
property a plan to remove water damaged building components should be implemented. As many
people are aware mold is not good for people to breathe and can be toxic to certain people.
According to research from many sources mold can begin in 24 -48 hours after the introduction of
water to cellulose building components ie: drywall, interior wood trim, wall paper etc. (EPA Mold
Guide) Often times people have not even returned to their properties in this amount of time
especially on the barrier islands. Many of the insurance policies out there specifically exclude the
costs associated with detailed mold remediation work. Therefore it is advantageous to remove
water damaged building components before they can get worse and treat the areas affected with a
mildewcide to prevent further spread of this condition.
Causation, Quantification and Costs
The next step in the restoration of a property affected by an insured loss is to establish how the
damage occurred, what was the result to the structure from sometimes more than one peril and
what will it cost to restore. This is where the business of restoration gets very complicated and in
some cases a person may wish to consult with an expert in these affairs. In the case of wind vs.
flood there are some many more factors that they could not be enumerated in this report but it is
critical to come up with an understandable chain of logical conclusions. Look at the flood line, the
impact of objects carried in the flood either still or velocity water, the elevation of the property,
the wind speeds and the presence or absence of straight line or tornado winds and compare them
to the structure and its attributes.
Once an opinion is reached as to how the damage occurred then break out the loss according to
the peril and the actual size and type of building materials affected. Find your house plans and a
have takeoff created by either yourself or hire a professional. This should include the stated value
affected of each of the items deliniated by cause. The roof may be 9000 s.f. of epdm with 1.5 inch
of iso insulation below or the flood may have taken the bottom four feet of drywall on the bottom
floor. Having a trusted contractor, engineer, architect, appraiser or expert available to break out
and put costs to this data will greatly enhance your ability to have an apples to apples comparison
with the numbers established by the adjuster. There are many programs that specialize in this
type of costs estimating and we prefer Xactimate after using it for more than a decade. These
programs compile costs for individual areas and provide them to insurance professionals and
restorers and are based on line by line details of the damage. Persons unfamiliar with the process
can find these programs to be daunting if they do not expect this level of detail.
In addition to the direct physical damages and costs there may be requirements associated with
law and ordinance for particular areas in specific with flood and wind speed zones. If you live in
flood zone do not be surprised to learn that your property may be required to be elevated after a
loss especially those over 50 % of the value of the structure (pre-storm). In some cases this is not
practical and relegates the property to a that of a total loss requiring demolition and reconstruction
compliant. Many times homeowners will try to save a residence and down play the damage to a
local municipalities only to be flooded again resulting in further loss and potential life threatening
conditions. I recommend a visit to your county building department and the local flood plain
administrator for any person caught in these close details.
Important Links:
FEMA >>
International Code Council >>
XACTIMATE >>
*This should not be substituted for professional legal advise, consult with your lawyer for legal
advise and Ask your insurance professional to discuss the details of your policy and insurance
needs.
**Satellite image of Tropical systems courtesy of NOAA and the National Hurricane Center
Hurricanes have become a big part of the end of summer ritual for people living in the southeast
with massive economic impact. These costs are counted in the billions of dollars and are felt by
industry, federal and state governments, business and home owners. For example the City of New
Orleans has in place a 7 million dollar contract to bus the residents of the Big Easy out of the city
at the right time before the loss. The economic impact of Katrina is in excess of a 100 Billion
dollars and still counting.
According to global weather studies we are in an era where more rather than less of these events
should be expected. The purpose of this report is to identify some of the sticking points in these
claims process based on my 15 years of working in the insurance restoration industry both as a
contractor and also as an expert/appraiser for insurers and owners.
Documentation
After the loss and the initial safety concerns are addressed, an immediate plan for the mitigation
of the loss and the documentation of the conditions is first and foremost. I suggest before the first
tree is cut off the building or the first temp roof applied that the property be photographed in full.
It is not unwise at this time to frame your photo within the neighborhood to establish that
surrounding properties are also equally affected. It is important to include landmarks in your
photo and then pictures with perspective and then up close with a date stamp. The pictures should
include the flood line with a tape measure from the finished floor elevation if one exists, and any
objects that impacted the structure or remain on the building prior to removal if possible. If these
photos can be digital, the ability to share them with insurers and others is greatly increased. Never
give to any person your original pictures. In addition it is imperative to have pre-storm pictures of
the contents and building prior to the loss in order to document the conditions at your property
especially in the case of a total loss or complete loss of the structure as was all too common after
Hurricane Katrina hit the Gulf Coast in 2005.
Mitigation
The second step is to mitigate the damages as required in most insurance policies. After a major
hurricane it may be some time before you will get the pleasure of a visit from your insurer. It is
up to you to have the financial ability to mitigate the loss or to keep it from becoming worse if
possible. The blue roof program from FEMA is an excellent method and at no cost for the individual
for complying with this requirement. In addition, to eliminating the water from further entering the
property a plan to remove water damaged building components should be implemented. As many
people are aware mold is not good for people to breathe and can be toxic to certain people.
According to research from many sources mold can begin in 24 -48 hours after the introduction of
water to cellulose building components ie: drywall, interior wood trim, wall paper etc. (EPA Mold
Guide) Often times people have not even returned to their properties in this amount of time
especially on the barrier islands. Many of the insurance policies out there specifically exclude the
costs associated with detailed mold remediation work. Therefore it is advantageous to remove
water damaged building components before they can get worse and treat the areas affected with a
mildewcide to prevent further spread of this condition.
Causation, Quantification and Costs
The next step in the restoration of a property affected by an insured loss is to establish how the
damage occurred, what was the result to the structure from sometimes more than one peril and
what will it cost to restore. This is where the business of restoration gets very complicated and in
some cases a person may wish to consult with an expert in these affairs. In the case of wind vs.
flood there are some many more factors that they could not be enumerated in this report but it is
critical to come up with an understandable chain of logical conclusions. Look at the flood line, the
impact of objects carried in the flood either still or velocity water, the elevation of the property,
the wind speeds and the presence or absence of straight line or tornado winds and compare them
to the structure and its attributes.
Once an opinion is reached as to how the damage occurred then break out the loss according to
the peril and the actual size and type of building materials affected. Find your house plans and a
have takeoff created by either yourself or hire a professional. This should include the stated value
affected of each of the items deliniated by cause. The roof may be 9000 s.f. of epdm with 1.5 inch
of iso insulation below or the flood may have taken the bottom four feet of drywall on the bottom
floor. Having a trusted contractor, engineer, architect, appraiser or expert available to break out
and put costs to this data will greatly enhance your ability to have an apples to apples comparison
with the numbers established by the adjuster. There are many programs that specialize in this
type of costs estimating and we prefer Xactimate after using it for more than a decade. These
programs compile costs for individual areas and provide them to insurance professionals and
restorers and are based on line by line details of the damage. Persons unfamiliar with the process
can find these programs to be daunting if they do not expect this level of detail.
In addition to the direct physical damages and costs there may be requirements associated with
law and ordinance for particular areas in specific with flood and wind speed zones. If you live in
flood zone do not be surprised to learn that your property may be required to be elevated after a
loss especially those over 50 % of the value of the structure (pre-storm). In some cases this is not
practical and relegates the property to a that of a total loss requiring demolition and reconstruction
compliant. Many times homeowners will try to save a residence and down play the damage to a
local municipalities only to be flooded again resulting in further loss and potential life threatening
conditions. I recommend a visit to your county building department and the local flood plain
administrator for any person caught in these close details.
Important Links:
FEMA >>
International Code Council >>
XACTIMATE >>
*This should not be substituted for professional legal advise, consult with your lawyer for legal
advise and Ask your insurance professional to discuss the details of your policy and insurance
needs.
**Satellite image of Tropical systems courtesy of NOAA and the National Hurricane Center
This site is here to help you achieve success in your endeavors. We offer assistance to
policy holders involved in large marine facilities loss. Storm-related/accident-related
claims assistance for Owners. We can help you proof your claim and settle for more.
policy holders involved in large marine facilities loss. Storm-related/accident-related
claims assistance for Owners. We can help you proof your claim and settle for more.
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