Water and Wind

  

In every hurricane there is always an argument over whether water or wind caused the loss. When I talk about water, I am talking about flood and not water that comes through a damaged roof or window. In the case of flood water, if you didn’t purchase a flood policy, you won’t have coverage under your homeowner’s policy. So the argument of water verses wind has financial consequences. Even if you have flood coverage it may have financial consequences if there is not enough flood coverage to pay for your loss.

As a general strategy, work to get as much damage covered under the policy with the greatest limits. And don’t concede to flood property that was first damaged by wind and subsequently damaged by flood. 

After Hurricane Katrina a famous attorney tried to convince the Mississippi court that flood was an ambiguous tem in the homeowner’s policy. That court didn’t buy his argument.  Chances are good that the court of the land will not buy a similar argument in your area either. So if you have both flood damage and wind damage, but don’t have flood insurance, look to identify all the signs of wind damage and assert that as a part of your claim against the wind policy. Not sure how to do that?

Go to BenefitBill. I’ve just posted a new video and workbook on this very subject.

Roof Damage To Be or Not To Be

I’ve been in the chat rooms today where the conversation remains active regarding State Farm Insurance being investigated in Texas. What has amazed me is the number of adjuster who adamantly state that roof shingles that have been lifted by wind but are otherwise physically fit are not considered to be wind damaged … in their humble opinion. As you might imagine, I adamantly disagree. The crux of their argument, if I understand it correctly is that because the shingles have no other blemishes or observable defects aside from being lifted by wind, that they are not considered as damaged.  

Of course if you are a homeowner, this means you’re not going to get paid.

I believe this type of analysis is flawed and here’s the reason why.  As I’ve stated on many occasions property insurance policies do not insure property: they insure people. They insure people against risk of direct physical loss, but nowhere in the policy does it define what is meant by direct physical loss. So in my not so humble opinion you (the insured) are entitled to the broadest possible interpretation of what constitutes direct physical loss. To restrict the investigation and subsequent observation to the shingles in these situations is myopic at best and wholly disingenuous. Roofs are a system. They are put together in a systematic fashion and each part of that system is dependent upon the other parts to ensure it fully functions as it is supposed to.  When one part of the system fails, as is the case of wind lifted shingles the entire system is impaired. That impairment is direct physical damage.

I used the analogy of a piece of tape being pulled up. When put back into place it never seems to have the strength of bond equivalent to the original bond. Shingles are no different.  The system is broken when the shingle are lifted and no amount of pressing them back into place will restore the system to its’ pre-loss condition. In my not so humble opinion.

Bill

The Crux of Adjusting

Disputes in insurance claims fall broadly into several categories: coverage disputes, damage disputes and causation disputes. This message addresses damage disputes.

The insurance adjuster’s job is to ascertain what the insurance company’s minimum contract responsibility is under the terms and conditions of the insurance policy. In so doing they look for the open and obvious damage and damages that can be documented using a camera and a tape measure. Sometimes these open and obvious damages actually reflect the full extent of the loss, however many times they do not. The crux of adjusting then becomes how you resolve that difference.

You’ve heard the old adage “The Right Tool For The Right Job”. This applies to insurance adjusting as well. Sometimes the right tool might be an ice pick to show charring in wood framing and at other times a golf ball to demonstrate hollow spots in tile flooring. When choosing a tool, ask yourself two simple questions: what am I trying to demonstrate? And how is this best demonstrated?

Let me give you an example. I had a client whose sliding glass door was damaged in a hurricane. Following the hurricane the wind whistled through the door whereas prior to the storm it did not. Taking a picture of the door was ineffective. The loss was proven two ways. First, I set up audio equipment to capture the whistle as it was actually occurring. Second, I videoed the door capturing the rattle of the door as it was shaken back and forth using only my pinky finger and thumb as leverage. The insurance company agreed to replace the door. Had they not agreed to pay for the door, additional more expensive proof would have been required: proof the insurance company would have been on the hook for.

Super Tuesday Tornadoes

To everyone whose home or business was damaged by the tornadoes on super Tuesday, you have my heartfelt condolences. These types of events cannot be emotionally prepared for and when they happen you are often times left to the whims of the insurance company for recovery. I have some advice: first don’t be victimized by the storm. While you have been a victim, you do not have to internalize the event and become a victim. Becoming a victim takes away all your power.

You job now is to take the necessary steps to begin to recover. You will have to prove your damages to the insurance adjuster assigned to your claim. You do this with photographs, the opinions of experts, contractor’s estimates and personal property inventories. Begin by taking photographs. I utilize the 4-corner method of photographing losses. This method enables you to visually show a 360 degree view of your property on a room by room basis. After taking overview shots take closer view shots where you can just begin to see the damage while still placing it in the context of the overview shots. Finally take close up shots. Take photographs even if you believe the insurance company will fully pay you for your loss. You won’t know for weeks whether you’re going to be in a dispute and photographs preserve our evidence.

Begin making an inventory of your property now. Buy a few spiral notebooks and give one to each family member with instructions to write down everything they remember and which was blown away. Take photographs of everything you throw away. If possible don’t discard property until after the adjuster has seen it. Take you photographs and notebooks and compile them into a single spreadsheet on a room by room basis. Price every item being claimed and give the spreadsheet to the adjuster.

Solicit bids from contractors to get your home repaired and give a copy of those bids to the adjuster.

If your home is not livable and you’re staying in a hotel, be sure to get a receipt for everything you spend. Organize those receipts on a daily basis. Submit those receipt to the adjuster for reimbursement. Do this at least once a week.

Lastly, ask for an advance. If your company is interested in working with you they’ll provide you with advance money. If not, you’ll know soon enough how difficult a time you’re in for.

For more information on making a claim go to http://www.benefitbill.com/