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— Property Management Quarterly — April 2016
I
t is with certainty that mul-
tiple areas in Colorado will
be damaged by hail this year.
Hail is indiscriminate – it will
damage roofs, rooftop equip-
ment, gutters, downspouts, fascia,
windows, screens, siding, stucco,
lighting, garages doors, patio furni-
ture, fencing, air conditioning units,
mailboxes, satellite dishes, sky-
lights, landscaping, crops, vehicles
and more.
Hail damage is inevitable. It can-
not be prevented, but you need to
be prepared should your property
sustain hail damage. If your prop-
erty does not have a maintenance
program wherein your roofs are
inspected annually, you may wish
to contract with a reputable roofing
contractor for an annual inspection.
There are a number of reasons for
doing so, but primarily it allows you
to establish any new damage. The
roofing contractor or your internal
maintenance staff must thoroughly
assess and note damage, if any, on
an annual basis. As the property
owner or property manager, you
will address needs to protect the
property. A manufacturer warranty
may be voided if the roof is dam-
aged by hail.
There are many types of roofs –
some are more susceptible to hail
damage than others. Manufacturers
of roofing products have improved
their products, yet as good as the
products are, hail can and will con-
tinue to cause damage. Roofs can
be comprised of many components,
including asphalt shingles, built-up
ballast roofs with
a gravel covering,
roofs with a single-
ply membrane
such as TPO (ther-
moplastic olefin),
EPDM (ethylene
propylene diene
terpolymer), tile
or metal panels.
The type of roof
installed on com-
mercial buildings
is dependent on
many factors,
including the cost of installation,
protection provided and the manu-
facturer’s warranty.
If your property recently was pur-
chased, sold, refinanced or insured
by a different insurance company,
an appraisal or inspection may have
been completed, which could iden-
tify hazards that should be rectified
and identify existing damage. The
carrier always has the option of
sending a representative to inspect
the property before extending cov-
erage; if the carrier issues a policy
for the property, it assumed the risk
of that property – and if wear and
tear are evident, they are existing
conditions and should not be used
as the basis to exclude coverage.
A benefit in having an annual
inspection completed, much like an
appraisal of the property, is to learn
from a qualified individual if there
are maintenance issues. For exam-
ple, whether the roof is in poor,
good or excellent condition and if
repairs are warranted. It is a benefit
to know of any existing damage.
With these types of reports, espe-
cially if provided to your insurance
company, you can credibly rebut
certain assertions, which may be
cited as a means to limit or deny
coverage.
Claim Challenges
Troubling for a property owner or
property manager is when a hail-
storm hits a large area, the insured
notes hail damage to the property,
promptly informs the insurance
company of a legitimate claim, only
for a representative of the insur-
ance company to deny the claim.
Reasons often cited by representa-
tives of the insurance company
include the evident damage is not
hail damage, the evident damage
is caused by wear and tear over
time, the evident damage is caused
by “foot traffic” (multiple individu-
als over the course of time walking
on a roof loosening granules on
asphalt shingles), or the evident
damage was not sustained during
the applicable policy period.
In addition, should the insurance
company acknowledge damage,
the cost of required repairs or the
“amount of loss” often is disputed.
Insurance company representatives,
whether an in-house adjuster or an
independent adjuster, may inspect
the roof and property – or they may
retain an outside consultant, such
as an engineer, to inspect the prop-
erty. Just as the individual(s) prop-
erty owners might inspect the roofs
and properties to accurately assess
the damage, those sent to the prop-
erty on behalf of the insurance
company similarly are obligated to
accurately and ethically assess the
damage.
Yet often input from representa-
tives of the insurance company
appear to attribute evident damage
to anything but hail. Reasonable
and defendable expenses, which are
accepted within the property claims
industry, such as a general contrac-
tor’s supervision fees and overhead
and profit, are indiscriminately
challenged by representatives of
many insurance companies.
Tips
Take pictures of the property now
reflecting the condition of the roof
and property before the next hail
storm. Considering having your roof
inspected annually and address
required repairs on a regular basis.
Document any hail loss, including
photos reflecting the size of hail-
stones and damage. Reach out to
your tenants and residents to cor-
roborate and accurately capture
damage. Finally, work with a repu-
table contractor to establish a claim.
Ensure you are accurate in sub-
mitting a claim – and insist repre-
sentatives of your insurance car-
rier consider the information you
submit rather than relying solely
on information provided by con-
sultants the carrier might retain.
Responsibility for the property and
any claim for covered damages are
yours. Be prepared and be proactive;
hail season is coming.
s
Chris Rockers
Partner, The
Claims Group,
Northglenn
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