Property Insurance Roundtable – Details, episodes & analysis

Experts discuss the legislative efforts supported by the National Association of Public Insurance Adjusters (NAPIA) regarding the Unauthorized Practice of Public Adjusting (UPPA), issues surrounding Assignment of Benefits post-disaster, and more.

"The National Association of Public Insurance Adjusters (NAPIA) was established in 1951 to promote a higher standard for policyholder advocacy. Public insurance adjusters are licensed to serve the general public and deliver knowledgeable and experienced representation when filing a claim for property damage. The founding members of NAPIA envisioned an association that would provide the appropriate resources for policyholder advocates in pursuit of successful claims resolution.1"

1. https://www.napia.com/about ↩

Key Takeaways:

[1:07] What are the biggest legislative challenges in the U.S. today?

• The Unauthorized Practice of Public Adjusting (UPPA)
• Assignment of Benefits
• Restrictions on public adjusters' rights to practice

[3:43] How are these challenges helping or hurting both consumers and insurance professionals?

• Many State insurance departments don't have regulatory authority over non-licensed individuals
• Home and business owners are getting scammed post-disaster by those who are not licensed to adjust their claim

[9:58] What are the major legislative priorities right now?

• Opening the Model Bill up to add in UPPA language

[12:03] Recent examples of recent major Case Settlements/Briefs.

[17:25] Future legislative efforts of Public Adjusters

• Achieve licensing in all 50 States
• Five States do not license: Alabama, Arkansas, Alaska, Wisconsin, and South Dakota

[19:31] How can listeners help achieve future legislative goals in support of policyholders, consumers, and other insurance professionals?

• Insurance is regulated at the State level
• Contact your State Representatives

Panelists:

● Brian Goodman — Principal at Kramon & Graham, PA

● Greg Raab — Vice President & Chief Marketing Officer at Adjusters International and Tidal Basin

Moderators:

● Rachele Drinkwine — Operations Coordinator at Adjusters International and Tidal Basin

Mentioned in This Episode:

Adjusters International

National Association of Public Insurance Adjusters (NAPIA)

National Association of Insurance Commissioners (NAIC)

This discussion is about ordinance or law coverage and how to insure for this potential exposure. After a disaster causes property damage or loss many policyholders discover that rebuilding the structure to conform to the latest building codes can add 50% or more to their recovery cost. Then comes the unpleasant surprise of discovering the ordinance or law exclusion that prevents a full recovery. With building codes, such as sprinkler systems and handicap accessibility, frequently changing, it is important to understand what your insurance excludes and how to acquire adequate coverage.

Key Takeaways:

[1:47] What is the ordinance or law exclusion?

[3:59] What are the three distinct areas of uninsured losses under the ordinance or law exclusion?

[10:00] How to determine if the exclusion will apply and what its probable expense will be on the loss adjustment?

[12:59] How can policyholders protect themselves from the ordinance or law exclusion?

[18:26] What types of coverages are available for policyholders to counteract the ordinance or law exclusion?

[24:31] Is it true that once the need for ordinance or law coverage is established policyholders must ask how much of each coverage is needed?

[27:41] Are there any circumstances in which the building ordinance or law coverage would not apply?

[30:38] Who can the insured reach out to for questions and insurance concerns regarding ordinance or law coverage?

[32:00] How does the ordinance and law exclusion affect business income and extra expense coverage?

[34:48] What role could ordinance and law play when a building has contiguous walls to another structure?

Panelists:

● C. Todd Thomas, Executive Director at Adjusters International and Member of the Society of Risk Management Consultants

● Jim Mahurin, Risk Management Consultant and Member of the Society of Risk Management Consultants

● John Marini, President, and CEO at Adjusters International

● Luis Esteves, Principal, and Executive General Adjuster at Jansen/Adjusters International

Moderator:

● Marjorie Musick, Social Media Specialist at Adjusters International/Basloe, Levin & Cuccaro, and Jansen/Adjusters International

Mentioned in This Episode:

Adjusters International

For further information on this topic, please read our Adjusting Today® article: "Ordinance or Law Coverage: Code for Recovery!"

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:

• Art Jansen, Chief Executive Officer – Jansen/Adjusters International
• Jim Beneke, President – The Beneke Company/Adjusters International
• Brian Goodman, Principal – Kramon & Graham PA
• Steve Badger, Attorney/Senior Partner – Zelle LLP
• 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:

• Adjusters International
• Adjusting Today
• National Association of Insurance Commissioners (NAIC)
• National Association of Public Insurance Adjusters (NAPIA)
• Consumer Protection Agency

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:

Adjusters International

Adjusting Today

U.S. Geological Survey Website

National Earthquake Information Center 

Federal Emergency Management Agency

National Hurricane Center

National Climatic Data Center

National Weather Service

National Oceanic and Atmospheric Administration

National Interagency Fire Center

National Center for Public Policy Research

National Continuity Policy

Continuity Guidance Circular 1 & 2

Climate Prediction Center

Center for Disease Control

Red Cross

World Health Organization

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:

Adjusters International

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:

Adjusters International

Adjusting Today

This podcast and the corresponding Adjusting Today article titled, "Disasters, Raising Questions of Insurance Adequacy: Bombings! Hurricanes! Earthquakes! Fires!" is designed to assist policyholders in making educated decisions regarding insurance coverages. In this episode, our expert panelists discuss the ever-changing landscape of insurance coverages in the face of disasters such as bombings, hurricanes, earthquakes, fires and more. This conversation explores risks that property owners may face, both natural and man-made, that can affect their coverage.

Key Takeaways:

[2:06] Is there a place in the world that is immune to disasters, man-made or natural?

[2:49] Advice for business owners who have just suffered a disaster.

[4:45] Is it true that after a large scale disaster, tenants who did not experience damage to their property may be prevented from re-occupying their property by order of Civil Authority? 

[10:34] What do business owners need to know about Civil Authority coverage?

[13:53] What is the extended period of indemnity and how can business owners use this coverage after a property loss occurs?

[19:28] Examples of obtaining materials in a low supply, high demand environment after a disaster.

[24:03] Real life examples of common mistakes made by policyholders with regards to disasters.

[28:16] How can home and business owners be sure they are evaluating their coverages adequately?

[34:10] If a property owner owns more than one property at multiple locations, can all the locations be covered on one policy?

[36:33] If a contractor cuts corners and the property is damaged afterward, what are some possible consequences for the insured?

[46:26] Does a standard insurance policy cover documents and records lost during a disaster, and what coverages can help mitigate risk?

[47:46] Are there unusual examples of man-made disasters that can help others learn from past mistakes?

[51:41] The panels final thoughts on adequate coverages for manmade and natural disasters.

Panelists:

Luis Esteves, Principal & Executive General Adjuster at Jansen/Adjusters International

Clay Gibson, Professional Public Insurance Adjuster - The Greenspan Co./Adjusters International 

John Marini, President and CEO - Adjusters International

Bill Sharpe, Commercial Insurance Loss Consultant - Jansen/Adjusters International

C. Todd Thomas, Executive Director of Consulting and Services and member of the Society of Risk Management Consultants -  Adjusters International 

Mentioned in This Episode:

Adjusters International

Adjusting Today - "Disasters, Raising Questions of Insurance Adequacy"

This podcast and the corresponding Adjusting Today article titled, "Difference in Conditions Coverage: What It Is and Who Needs It?" is designed to assist any business that needs more protection than supplied by standard property insurance in regards to flood and earthquake perils. Today’s expert panelists answer questions regarding terminology, past and present changes in coverage, and what types of businesses need this type of coverage. This roundtable ends with additional important thoughts and real life examples of DIC policies.

Key Takeaways:

[1:45] What is the Difference in Conditions (DIC) coverage?

[2:36] Why are these policies often misunderstood by policyholders?

[3:34] Who or what types of businesses need this type of coverage?

[7:19] To which type of disasters, other than flood and earthquake losses, does this coverage apply? 

[10:21] A coinsurance requirement can have a serious adverse effect on the insured at the time of loss. Why?

[11:24] Why is it important to watch for definitions, such as flood and earthquake, if they are defined in your main policy?

[16:05] What type of limits do DIC policy limits contain, as compared to AAIS form limits?

[20:25] Do commercial insureds who carry business interruption or business income coverage in their main commercial property policy also need to purchase similar coverage in their DIC policy?

[21:37] Why the ordinance or loss can be troublesome for policyholders who sustain serious property loss. 

[24:00] How are subrogation provisions usually written in DIC policies, and what role do they play?

[25:08] Are court decisions involving DIC coverage common, and if so, why?

[27:03] What is a Builder’s Risk DIC policy?

[30:00] Why are there no standard DIC policies available?

[31:34] How has DIC coverage changed in past 10 years?

[33:29] Do you see big changes on the horizon for DIC coverage?

[34:53] Additional roundtable thoughts on DIC policies.

Panelists:

Jim Mahurin, Risk Management Consultant and member of the Society of Risk Management Consultants

C. Todd Thomas, Executive Director of Consulting Services and member of the Society of Risk Management Consultants -  Adjusters International 

R. Scott deLuise, CCIM, CPPA, SPPA, President and CEO - Adjusters International/Matrix Business Consulting

Mentioned in This Episode:

Adjusters International

Adjusting Today - Difference in Conditions Coverage #3042

This podcast and the corresponding Adjusting Today article titled, "Builder’s Risk Insurance: Specialized Coverage for Construction Projects" focus on a policyholder and which steps they should take to ensure there is adequate insurance coverage on their upcoming or existing new construction project. Important points of this roundtable include identifying exposures, increased costs due to the shelf-life of previously acquired bids and basing your Builder’s Risk Insurance policy on the anticipation of a total loss. 

Key Takeaways:

[1:14] How to define Builder’s Risk Insurance.

[2:31] Who purchases Builder’s Risk Insurance?

[3:51] When a building is being constructed what kinds of risks is it exposed to?

[5:54] Who and what can be covered under a Builder’s Risk policy?

[10:31] How do you define the term builder?

[13:22] Does this policy cover materials in transit to the job site as well as when materials are in storage awaiting transit?

[18:03] What is the best way for a buyer to get adequate coverage?

[21:06] What are common errors on the Completed Value Form?

[27:43] What is the difference between a Completed Value Form and a Reporting Form?

[31:07] What role does a deductible play when calculating penalties relating to Builder’s Risk Insurance?

[32:40] What are examples of covered causes of loss and exclusions under a Builder’s Risk policy.

[45:38] What options are available if a Builder’s Risk policy is terminated but there is still work to be completed on the building?

[51:41] What beneficial optional coverages are available for a policyholder to add in a Builder’s Risk policy?

[57:32] What is Contingent Coverage with regards to Builder’s Risk Insurance?

[1:02:04] Who should a person seek out when investing in an insurance policy or after sustaining a loss?

Panel of Insurance Experts:

Tony D’Amico, Senior Vice President at Goodman-Gable-Gould /Adjusters International

Jim Mahurin, Risk Management Consultant and member of the Society of Risk Management Consultants

C. Todd Thomas, Executive Director of Consulting and Services and member of the Society of Risk Management Consultants -  Adjusters International 

Mentioned in This Episode:

Adjusters International

Adjusting Today - Builder’s Risk Article #3037

This podcast and the corresponding Adjusting Today article titled: "Hurricanes and Windstorm Coverage," focus on the idea that understanding your insurance policy before a disaster strikes is essential to protecting your organization from the next major hurricane or windstorm and ensuring a fast recovery. Different types of special coverages may be available and needed for property owners in hurricane prone areas. Tips for policyholders include: making sure there is an electronic PDF copy of the insurance policy, before and after claim property pictures/videos, insurance audits and considerations for microbes.

Key Takeaways:

[1:30] What areas of the United States are the most exposed to hurricanes or tropical storms?

[2:54] What type of hurricane damage should property owners be concerned about?

[5:07] Does a standard residential or commercial insurance policy protect a property from hurricane damage or is special coverage required?

[8:10] In layman’s terms, what types of coverages are available that would benefit property owners in case of a hurricane or windstorm?

[25:10] Is mold covered in a standard insurance policy and is it capped?

[29:23] In the aftermath of a hurricane, what is the first thing a policyholder should do?

[36:46] Additional comments from the panelists about coverages and premiums.

[38:58] How have insurance policies changed based on past major hurricane events?

Panel of Insurance Experts:

Keith Hayman, Director of National Development - Goodman-Gable-Gould/Adjusters International

John Marini - President and CEO - Adjusters International

C. Todd Thomas - Executive Director of Consulting and Services and member of the Society of Risk Management Consultants -  Adjusters International

Mentioned in This Episode:

Adjusters International

Adjusting Today - Hurricane and Windstorm Coverage Article by Keith Hayman