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Page 8 — Property Management Quarterly — July 2017
Insurance
GRIFFIS BLESSING
• Full Service Property Management
• Construction Services
• Due Diligence
• Receivership
• Financial Services
5600 W. Quebec St, Ste 141B, Greenwood VIllage, CO 80111
(303) 804-0123
102 N. Cascade Ave. Ste 550, Colorado Springs, CO 80903
(719) 520-1234
D enver has been a tempo-
rary home to many out-of-
state insurance adjusters
the past few months due
to the May 8 hailstorm in
the metro area. Insurance compa-
nies sent members of catastrophe
teams to quickly evaluate damages
and prepare estimates upon which
insurance companies issue initial
payments – and then they are gone.
Property owners are cautioned to be
leery of all unethical opportunists
after significant weather events – a
warning to question incomplete or
inaccurate reports and estimates
prepared on behalf of insurance
companies also is appropriate.
An accurate, defendable assess-
ment is needed on every property
claim. If within the path of the
storm, whether damage to your
property is evident and significant
– or if damages are not apparent – a
thorough assessment of your prop-
erty should be conducted.
Take steps to protect your prop-
erty. Address the needs of your
tenants, be proactive in the claims
process, and consider seeking assis-
tance from reputable consultants as
part of your team to address issues
with consultants retained as part
of the insurance company’s team.
Addressing permanent repairs
should not begin until an agree-
ment is reached on the required
repairs and costs associated with
completing the repairs.
If you filed a claim for damage,
a representative of your insurance
company should have inspected
the property by now. This individual
may have limited
experience and
limited authority
on the claim; and
may have taken
more time inform-
ing you of damag-
es that aren’t cov-
ered as opposed
to those that are
covered. While this
individual pre-
pared and submit-
ted for approval an
estimate of damages to the insur-
ance company, this individual may
not address required repairs to your
property.
Even if an experienced, local, in-
house claims adjuster prepared the
estimate, your insurance company
must be open to input from you and
your team to address reasonable
and customary repairs and expens-
es as part of the claim.
Until you have a reputable gen-
eral contractor or roofing contrac-
tor – who tells you that the damage
is limited to the roof, assesses the
damages and prepares an estimate
– you may not know if the estimate
from the company adjuster is rela-
tively accurate or lacking in scope
and costs.
If the parties are unable to agree
that the roof was damaged by the
hailstorm, it may be necessary for
samples of your roofing membrane
or shingles to be cut for testing.
There are costs associated with
such testing and chain-of-custody
procedures to follow to ensure that
the parties adequately preserve the
integrity of the sample(s). Agree-
ment as to how these costs are cap-
tured and paid as part of the claim
should be reached prior to taking
the samples. There are reliable
testing facilities, including those
typically used by insurance compa-
nies, but you should have a voice
in selecting the designated testing
facility.
Property owners should be mind-
ful that not all roofing contractors,
general contractors, engineers,
construction consultants, public
adjusters, insurance adjusters, and
others within the property and
casualty insurance industry adhere
to proper and ethical adjustment
practices. You and representatives
of your insurance company are to
carefully assess damages as you
seek to obtain the indemnification
provided within the policy cover-
ing your property. Suggestions by
insurance company representatives
as to expenses that are not covered
should be met with a bit of skepti-
cism if not specifically noted in
your policy.
Whether you wait for your insur-
ance company’s repair estimate or
you have an estimate of damages
prepared and submitted, you will
want repairs addressed by a profes-
sional contractor who will stand
by his estimate and work product.
The parties are to work coopera-
tively together to reach agreement
on damages – not to minimize and
ignore, nor fabricate and embellish,
damages.
The National Roofing Contractors
Association and the Colorado Roof-
ing Association websites provide
useful information regarding the
selection of a professional roofer.
On the CRA website is a publication
from the Denver District Attorney’s
Office – with an admonition: “Don’t
always choose the lowest bidder –
almost all complaints to the DA’s
office are contractors with very low
bids. You get what you pay for.”
Insurance company representa-
tives are aware that low, inaccurate
and incomplete estimates do not
provide a true measure of damages
to your property. Assertions from
insurance company representa-
tives who profess to have secured
a “comparative” estimate from
a contractor for repairs in a low,
lump-sum bid without necessary
details should be challenged. This is
especially true of contractors who
often work with representatives of
your insurance company – and are
aware you already have a contrac-
tor. Knowing they won’t be retained,
estimates are prepared with a wink
and a nod at costs significantly less
than your contractor’s estimate
with assurances the work will be
completed for the lower price. This
is inappropriate.
Take responsibility for your claim
and insist on cooperation from
your carrier. Request a local rep-
resentative with whom you can
address claims-related matters and
schedule necessary inspections
of the property be designated on
your claim. Question the motive of
insurance company representatives
who insist you do not need outside
assistance.s
Chris Rockers
Partner, The Claims
Group, Northglenn