Today we will be discussing the ins and outs of various interesting insurance claims that our expert panelists have handled and adjusted successfully. These memorable cases range from a fire at a Midwestern school to two New York City buildings that were damaged during Hurricane Sandy. Our panel of experts has extensive experience in the public adjusting industry, and will guide us through our discussion.
[1:40] Electrical Fire in a Special Needs School — Chuck Sorrell
[13:56] Fire in a Fast Food Restaurant
[25:10] Major Loss from Hurricane Sandy — Keith Hayman
[35:21] Triple Net Property Lease Claim — Jim Mahurin
Panelists:
● Chuck Sorrell — Owner — Xpert Consulting Services
● James R. Mahurin — Risk Management Consultant and member of the Society of Risk Management Consultants
● Keith Hayman — Senior Vice President — Goodman-Gable-Gould/Adjusters International
● Todd Thomas — Executive Director of Consulting Services and member of the Society of Risk Management Consultants — Adjusters International
Moderator:
● Marjorie Zeoli Musick, Social Media Specialist – Jansen/Adjusters International, Globe Midwest/Adjusters International, and Adjusters International/Basloe, Levin & Cuccaro
Mentioned in This Episode:
This discussion will take an in-depth look at insuring the many exposures and losses that result from disastrous catastrophes. While multi-family buildings offer many amenities to residents such as maintenance and lawn care, which allow for a simplistic and flexible lifestyle, the insurance policy to cover them are anything but. Apartments and condos are often inadequately insured, and the risk posed for those who own or reside in them is high. For further insight on this topic, please see the corresponding Adjusting Today article: “Multi-Family Complexes (Apartment and Condo): An In-Depth Look at Insuring the Many Exposures and Losses.”
Key Takeaways:
[1:57] Defining what constitutes a multi-family property.
[2:19] How do multi-family exposures differ from typical residential or commercial exposures?
[3:13] Why, by law, must multi-family property owners purchase adequate insurance coverage?
[4:45] Does preparing a multi-family policy take more foresight and planning than a conventional homeowners policy?
[6:54] A 2014 study by the National Multi-Family Council, found approximately 43,267,432 Americans live in rental properties, and a survey by the Insurance Information Institute reported 94,000 fires recorded in apartment buildings the same year; do these figures surprise you?
[8:09] Are rental apartments, condo, and cooperative apartments insured in the same way?
[9:29] How are condominium and paired homeowner associations insured? Does it differ from apartment complexes? What two kinds of ownership are available for condos?
[13:54] What is the building's management responsible for insuring?
[14:57] What is a unit owner or renter responsible for?
[16:35] What will standard building coverages, provided by the Insurance Services Office (ISO) include for a multi-family complex?
[17:26] What additional coverages are available for apartments and condos?
[21:25] What types of coverage are available to protect owners and residents from disasters?
[22:19] What exclusion may arise from the type of coverages previously discussed, and are there additional coverages policyholders can purchase to counteract these exclusions?
[25:53] What role does a deductible play in these claims, and how should one select a deductible amount when purchasing a policy?
[32:31] What are unique insurance issues for apartments in comparison to condominiums?
[36:00] What are lease provisions, and why are they important when processing property insurance claims?
[38:45] What types of crime exposures face apartment owners, and is there coverage for this?
[42:30] What types of non-residential exposures do apartment building owners face, and are there additional insurances they can purchase to protect themselves from these risks?
[44:31] What types of loss control and safety measures can be taken to reduce property insurance and remediation costs?
[46:48] What are common problems that come up when adjusting multi-family complex losses?
[50:55] Are there any changes on the horizon for this type of coverage?
[53:55] One piece of advice on multi-family complex coverages.
Panelists:
● Bill Sharpe – Regional Director - Jansen/Adjusters International
● Josh Scott – Professional Public Insurance Adjuster - The Greenspan Co./Adjusters International
● Todd Thomas – Executive Director of Consulting Services and member of the Society of Risk Management Consultants - Adjusters International
Moderator:
● Brianna Moyer – Digital Marketing Manager – Adjusters International
Mentioned in This Episode:
National Multi-Family Housing Council
Insurance Information Institution
The National Association of Public Insurance Adjusters (NAPIA) provides the public adjusting industry with more than licensing. NAPIA board members have created scholarships, educational programs, and have arranged sessions with legislators to inform them of pertinent information regarding public adjusting. Today’s panel of experts discusses the substantial benefits NAPIA supplies to its members, and who is eligible to become a member. They also discuss the comprehensive NAPIA website and the professional designations NAPIA offers.
Key Takeaways:
[:57] What is NAPIA, when and how did it form, and what is its mission?
[5:12] Who are NAPIA members and who is eligible to apply for membership?
[6:33] How the panelists support NAPIA in addition to being members.
[8:29] Karl Denison explains when and why his firm joined NAPIA.
[10:00] Personal and firm-related benefits related to being a member of NAPIA.
[12:45] Interactive educational programs provided by NAPIA include wind, roofs, business interruption and legal issues.
[17:09] Greg Raab describes the Board and Officer process, and why it is important to get involved.
[20:08] How has NAPIA helped changed the landscape for public adjusters?
[22:54] NAPIA and the licensing initiatives it supports.
[25:04] What does it mean to be a licensed public adjuster?
[28:29] NAPIA has different designations, including CPPA and SPPA, and scholarship programs.
[32:09] The comprehensive NAPIA website is a portal and a hub of what is going on in the industry.
Panelists:
● Karl Denison - Executive Vice President & Principal at Goodman-Gable-Gould/Adjusters International
● David Barrack – Executive Director at the National Association of Public Insurance Adjusters (NAPIA)
● Greg Raab – Vice President at Adjusters International
● Todd Thomas – Executive Director of Consulting Services and member of the Society of Risk Management Consultants - Adjusters International
Moderator:
● Marjorie Musick – Social Media Manager at Adjusters International/Basloe, Levin & Cuccaro, Globe Midwest/Adjusters International, and Jansen/Adjusters International
Mentioned in This Episode:
To quote Robert Baker's published piece on the Unauthorized Practice of Public Adjusting (UPPA), "The unlicensed practice of public adjusting is a vehicle of consumer fraud that preys on some of the most vulnerable elements of our society. The disaster-stricken, the elderly, the unsophisticated and those for whom English is a second language. Individuals losses range from a couple of thousand to tens of thousands of dollars. And frequently, victims are left without a remedy, because UPPA offenders just disappear or are not worth suing."
Our experts discuss this timely issue - what it is, who is affected, and what can be done to stop it - in this episode.
[01:52] What is the unauthorized practice of public adjusting and how and when did it start?
[05:46] How did the practice of UPPA develop and get worse over time?
[10:00] Do insurance agents ever assist in claims and does it cause confusion?
[13:19] How prevalent is the problem and are some states worse than others?
[15:25] In terms of dollars, what does this practice cost policyholders and/or the insurance industry?
[22:18] What has been done to counteract this practice and who is doing it?
[25:42] How are the insurance industry and public adjusters united in addressing this issue?
[27:35] Have insurance companies taken a position on this topic?
[32:08] Once claims have been settled, do homeowners have any recourse?
[34:14] Real world examples of unlawful public adjusting activity.
[38:28] Recommended resources for home and building owners who may experience the illegal activity.
[40:00] What is being done to educate consumers about this issue?
[42:04] Additional thoughts from the panel.
Panelists:
Moderator:
Mentioned in This Episode:
According to the Insurance Information Institute, insured losses due to natural disasters in the U.S. totaled $16.1 billion in 2015 and $15.3 billion in 2014. Some of the most expensive disasters to hit the U.S. included Hurricane Katrina in 2005, the World Trade Center terrorist attacks in 2001, Hurricane Andrew in 1992, Hurricane Sandy in 2012 and the Northridge California Earthquake in 1994. How can businesses prepare to weather these types of events and the cost associated with them? The chances of a full and expedient recovery are greatly improved when a comprehensive disaster recovery plan is in place.
This discussion explores how and why those organizations that anticipate what could happen, and plan for it, stand a much better chance of surviving. Our experts review the basics, disaster recovery planning, coupled with interesting facts and statistics about the impact of natural and manmade disasters.
Key Takeaways:
[2:20] Is it true that natural disasters are happening more frequently or are we just paying more attention to the property damage costs associated with these disasters?
[4:33] According to the Insurance Institute for Business and Home Safety, many businesses aren’t prepared to respond to a man-made or natural disaster. Does this statement surprise you?
[6:15] Are there differences between business continuity plans, continuity of operations plans and disaster recovery plans?
[7:42] How can a business test their level of disaster preparedness?
[13:47] What are the main steps in the disaster recovery plan development process?
[15:24] When developing a disaster recovery plan, why doesn’t a one-size-fits-all approach work for every organization?
[18:31] What types of challenges can a planning team run into when developing their disaster recovery strategy?
[20:32] If an organization has no disaster preparedness plan in place, why is establishing their team the most important aspect?
[26:42] What goals should be met during the first disaster preparedness planning step?
[29:52] In the Adjusting Today publication the second step in the planning process is to analyze capabilities and hazards, how should the planning team conduct this analysis?
[33:23] Did 9/11 spawn the need to include terrorist attacks in disaster planning?
[34:07] Step 3 in the process is establishing the plan.
[37:35] Post-disaster considerations that an organization’s disaster preparedness team should discuss.
[45:02] What role should technology play in an organization’s disaster plan development and recovery efforts?
[46:15] Once a plan has been completed and approved how should an organization implement it?
[52:34] What is on the horizon for disaster recovery planning?
[55:56] Examples of organization’s putting together great plans to effectively see them through a disaster.
Panel of Insurance Experts:
Daniel Craig, Senior Vice President — Adjusters International
John Marini, President and CEO — Adjusters International
Michael Roberts, Director, Preparedness Division — Tidal Basin Government Consulting
C. Todd Thomas, Executive Director of Consulting Services and member of the Society of Risk Management Consultants— Adjusters International
Moderator:
Marjorie Musick, Social Media Specialist — Globe Midwest/Adjusters International, Jansen/Adjusters International, and Adjusters International/Basloe, Levin & Cuccaro
Mentioned in This Episode:
U.S. Geological Survey Website
National Earthquake Information Center
Federal Emergency Management Agency
National Oceanic and Atmospheric Administration
National Interagency Fire Center
National Center for Public Policy Research
Continuity Guidance Circular 1 & 2
According to the National Park Service, "as many as 90% of wildfires in the U.S. are caused by humans, resulting from campfires left unattended, the burning of debris, negligently discarded cigarettes, and intentional acts of arson. The remaining 10% are started by natural phenomena, such as lightning or lava." Regardless of the actual cause, wildfires can be devastating.
The Insurance Information Institute reports that "the 2015 fire season set a new record for the number of acres burned in the U.S. Between January 1st and December 30th there were 68,151 wildfires, which burned 10,125,149 acres according to the National Interagency Fire Center." Over the 20-year period 1995-2014, fires, including wildfires, accounted for 1.5% of insured catastrophe losses totaling $6 billion dollars, according to the Property Claims Services Unit of ISO.
During today’s discussion, we will explore the important areas of risk management and property insurance that must be addressed, to be prepared for the destruction that can be caused by future wildfires.
Key Takeaways:
[3:04] What is a wildfire, how do wildfires start, and which areas of the U.S. are impacted the most?
[4:13] What is a wildfire hazard zone, and how can policyholders find out if they live in one, and how best to assess their risk?
[4:50] Are wildfire insurance claims different from other fire insurance claims? Are the rules and restrictions the same?
[5:34] How can a property be compromised if subjected to a wildfire?
[6:52] What are things home and business owners can do, to prepare for a disaster such as a wildfire, for easier claims processing?
[7:40] Does a standard insurance policy include coverages to assist those affected by an emergency situation?
[8:42] What options exist under Additional Living Expenses (ALE) coverage?
[10:26] For renters of apartments, condos, etc., what are their responsibilities, and what are the responsibilities of the building manager, in a wildfire situation? Also, what type of insurance coverage do they need in order to be fully reimbursed?
[11:41] What extra coverages should homeowners have added to their policy, in order to mitigate any and all risk?
[12:42] What extra coverages should business owners have added to their policy, in order to mitigate any and all risk?
[14:16] After a wildfire occurs, contractors are in high demand. How does this affect construction cost?
[15:02] What are the biggest hurdles in establishing building valuations post-wildfire? And, what can be done in advance to overcome these hurdles?
[16:15] What steps can home and business owners take to help recreate lost personal property?
[17:55] Examples of real life wildfire claims.
[19:10] What challenges exist when dealing with carriers, due to the volume of claims post-wildfire?
[20:10] What about debris removal, county-sponsored authorized companies, and how they affect recovery?
[21:48] What actions should a policyholder take, immediately following damage from a wildfire?
[23:16] What is meant by ‘rule of thumb’ values, and why some valuations don’t apply in post-disaster environments?
[24:26] Who is available to assist policyholders to become familiar with the ins and outs of their insurance policies?
[25:57] The panel shares expert advice regarding wildfire insurance claims.
Panel of Insurance Experts:
C. Todd Thomas, Executive Director of Consulting Services and member of the Society of Risk Management Consultants — Adjusters International
Bruce Tibert, Professional Public Insurance Adjuster — The Greenspan Co./Adjusters International
Jody DuVall, Inventory Specialist — The Greenspan Co./Adjusters International
Kyle Hensiek, Professional Public Insurance Adjuster — The Greenspan Co./Adjusters International
Moderator:
Marjorie Musick, Social Media Specialist — Globe Midwest/Adjusters International, Adjusters International/Basloe, Levin & Cuccaro, and Jansen/Adjusters International
Mentioned in This Episode:
A small storm that causes a tree to fall on the roof of your home, to a large-scale disaster that takes out an entire shopping plaza, will call for clean up in the aftermath. Added to this complex situation could be hazardous materials or pollutants that are exposed to the environment, nearby towns or residences, in a disaster setting that will also need to be taken care of. Our experts discuss which coverages you need to protect your home, business, and self from having to incur these additional costs. For further information on this topic, please read our corresponding Adjusting Today article titled "Debris Removal and Pollution Damage: How These Additional Costs Impact the Property Claim."
Key Takeaways:
[2:06] Are the costs to clean up debris after a disaster, such as a hurricane, flood, or wildfire, included in a standard residential or commercial insurance policy?
[3:18] Debris removal coverage will include the following to a standard policy.
[4:07] What is the history of debris removal coverage?
[5:48] Who is responsible for cleaning and removing debris or hiring contractors to help?
[7:05] How can policy holders comply with insurance company rules regarding debris removal coverage?
[8:31] What types of pollution can result from a property damaged in a disaster situation?
[9:51] How does a home or business owner predict if pollutants may be exposed, in the event a disaster occurs?
[11:49] How has debris removal coverage impacted the settlement of policyholders’ claims?
[14:20] What problems have arisen for policyholders that have debris removal coverage?
[17:27] What type of coverage is necessary, to mitigate the risk of extracting pollutants from land and/or water?
[18:35] What does pollution, or the term pollutants, coverage include, and what does it exclude?
[19:13] Real life examples of times when pollution coverage was needed.
[20:37] Advice for listeners on debris removal coverage and pollution coverage.
Panelists:
Jim Beneke, President, The Beneke Company – Adjusters International
John Marini, President and CEO – Adjusters International
David E. Moore, COO, Jansen/Adjusters International – Adjusters International
Steven Vanuga - Regional VP, Adjusters International/Basloe, Levin & Cuccaro – Adjusters International
C. Todd Thomas, Executive Director of Consulting Services and member of the Society of Risk Management Consultants – Adjusters International
Mentioned in This Episode: