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Page 16 — Property Management Quarterly — October 2017
Management
Serving
Property Professionals
Since 2003
303-789-0016 for 24 hr. Emergency Service
Fire Alarm & Sprinkler System Testing & Inspection
We Service All Makes of Fire Alarm Systems
Emergency Services & De ciency Repairs
New Construction Engineering & Design
Tenant Finish Fire Alarm & Sprinkler
H ail, Harvey, wildfires and
Irma – the lives and valued
property of millions have
been damaged or destroyed
in the past six months from
Colorado, Oregon and California all
the way to Texas and Florida. People
have lost loved ones to the destruc-
tive forces of nature. The number
of billions of dollars to be spent in
recovery efforts will not be known
for some time – but the number will
be staggering.
Thoughts and prayers are with
those who may need years to
return to some sense of normalcy.
Many here will contribute time,
labor, product and money – helping
others as others have helped us.
During such times, we witness the
best of people – complete strang-
ers helping strangers. During such
times, we also hear disturbing sto-
ries reflecting the most vulnerable
and devastated being taken advan-
tage of or denied proper insurance
coverage.
Each of those impacted have
unique circumstances and chal-
lenges to overcome. These cata-
strophic losses may be summa-
rized in statistics five or 10 years
from now – but the financial bur-
den and emotional toll experienced
by millions at this very moment
will be unbearable for many – cer-
tainly if informed their loss is
not covered. Those displaced are
not focused on statistics; they are
focused on surviving.
These losses should never be
about the money paid by insurance
companies as the
option to offer
and place cover-
age and ensuing
profits are lever-
aged by insurance
companies. People
and businesses
suffer incredibly
– these events are
much more than
an inconvenience.
Many businesses
will never recover.
The intended purpose in securing
insurance coverage is for events
such as these; for peace of mind,
financial protection and indemni-
fication should hail, fire, hurricane,
flood or earthquake cause damage.
The claims process is anything
but simple – file a claim and rely
on your insurance company to
properly and honestly handle and
adjust the claim is the norm. Insur-
ance companies retain engineers
or other consultants to establish
the cause of loss – and may deny
coverage or limit the amount paid
on a claim if the property or pos-
sessions are not covered by a flood
policy.
We learned about a practice of
altering engineering reports to
deny coverage, which was not
limited to a few Hurricane Sandy
claims, but rather reports were
improperly altered on numer-
ous 2012 claims – such actions
occurred prior to and after Sandy
claims. Folks in Texas, Florida and
elsewhere are about to find out just
how honest and ethical representa-
tives of their insurance companies
are and where profits may trump
an accurate assessment in coverage
and damages.
Coloradoans understand insurance
claims and catastrophic damages to
industrial and commercial proper-
ties because many of the types of
events taking place elsewhere have
hit here as well. Thousands are
likely attempting to resolve claims
from the hailstorm in May – and still
others disappointingly attempting to
resolve hail claims from significant
2015 and 2016 hailstorms.
The recent September days with
haze – where our beautiful clear
skies, view of the mountains and
yellow sun were lost to smoke and
debris from wildfires out West may
remind Coloradoans that not so long
ago, our September days of haze
were caused by the 2010 Fourmile
Canyon Wildfire. Over 150 homes
were destroyed – friends and neigh-
bors had their lives turned upside
down and told discouraging stories
of the claims process and being
underinsured.
The Fourmile Canyon Fire was
followed by the High Park Fire and
the Waldo Canyon Fire, both in June
2012. More than 250 homes were
destroyed in the High Park Fire and
nearly 350 homes were destroyed
in the Waldo Canyon Fire. One year
later, June 2013, another 500 proper-
ties were destroyed in the Black For-
est Fire. Stories of unfair claims han-
dling and being underinsured were
again repeated.
Although not all that com-
mon, many Coloradans recall the
destruction caused by flooding in
September 2013. They endured the
muck, the mold, the stench and
washed-away buildings and roads.
To complicate matters, when lives
and dreams were shattered, some
learned the cost to rebuild and
replace possessions far exceeded
the coverage they had. In mak-
ing matters worse, few had flood
insurance – filed claims resulted in
denied claims and little or no finan-
cial assistance – and funds avail-
able from the government were not
sufficient to rebuild properties and
others were not eligible to receive
any available funds.
Attempting to comprehend the
magnitude of a loss may be lost
on those fortunate enough to have
never experienced such a catas-
trophe. As you consider what you
might do to assist in recovery
efforts for those impacted by recent
events, also give thought to wheth-
er your properties are adequately
protected by your current insurance
coverage. If flood coverage is not
in place, at a minimum, research
the benefits and consider obtain-
ing coverage. Assess coverage limits
and deductibles to include dam-
ages specific to wind and hail and
understand and be comfortable
with the amount needed to cover
expenses before the carrier issues
payment. Seek input from industry
experts on all insurance matters
before you or Colorado encounters
its next catastrophic event. s
Chris Rockers
Partner, The Claims
Group, Northglenn