A four-page unsolicited letter I received last week from an attorney filled me in on some of the inner workings of the powers to be in Tallahassee and reminded me of this famous line from the Forrest Gump movie. This letter was like a box of chocolates as each paragraph revealed something new. Apparently, he has been following some of my writings, specifically about the reduction in coverage for the  water peril, the most frequent cause of losses for property damage and wanted to give me some background on how this all went down. 

Home and business owners aren’t the only ones feeling the impact from frozen pipe breaks. A recent NY Times article; A Severe Winter Breaks Budgets as Well as Pipes discusses the toll the deep freeze is taking on municipal infrastructure which may be dealing with pipes over 100 years old. We also know schools and other public facilities are experiencing frozen pipe damage.  When there is wide spread damage from weather events, we’ve seen these local governments bring in public adjusters to manage their claims since they are typically short on resources.

Here is an insurance claim question that we answered as a contributing member of experts for United Policyholders who advocates for property owners.

Q. I had an upstairs pipe burst 1 month ago that caused damage to the upstairs bathroom (tile & drywall), carpet in upstairs (hallway & one bedroom), all of downstairs kitchen (walls, cabinets, ceiling, under-house insulation, HVAC ductwork). After quickly stopping the leak and vacuuming out the water, I set up my claim and started calling water damage restoration companies.  Of the dozen I called, only one could come out sooner than 5 days.  They began drying and demolishing within 2 days.  After my persistent calling, an adjuster finally got in touch with me 8 days later to setup an appointment.  This appointment was 24 days after initial damage!  Now I will talk about my dispute.  Two adjusters showed up.  The upstairs tile had expanded and contracted enough to bust loose.  The tile creaks badly and the adjusters bent down with me and clearly observed it moving.  However, they still were insistent on not replacing it.  I have continuous carpet (mended seamlessly at the thresholds) all over the upstairs including stairs.  They wanted to cut above the stairs and at thresholds, citing they only had to replace what was damaged.  Downstairs, they wouldn't even consider the tile, although I know that it was wet under those tiles for at least a week with plenty of time for mold spores to form.  Every piece of plywood under those tiles was wet and didn't get insulation removed for 4 days and never had a fan or dehumidifier put in the crawl space.

Where do I go from here? I thought I should first write the adjusters a letter in my defense.  I was an engineer for The Tile Council of North America which publishes industry-consensus guidelines for ceramic tile installation. I have plenty of expertise and sources to back my concerns. Or should I just get a public adjuster? Thank you!

While looking for some information in my office library yesterday, I pulled a book from a shelf titled The Policyholder Advisor authored by Eugene R. Anderson, William G. Passannante, and Robert M. Horkovich. These three gentlemen, all attorneys, and at the time of publishing in 2002, shareholders at Anderson Kill & Olick P.C. now Anderson Kill P.C. one of the nation’s leading law firms for policyholders. The book jacket noted that the book is a collection of articles published in the firm’s newsletter, “The Policyholder Advisor.”

It was a little uncanny when I opened the book, and it opened to page 181 and the chapter title was “Insurance Coverage Available for Property Losses from The Blizzard of 96.” While no two storms are ever the same, there sure are a lot of similarities between the 1996 blizzard and the current polar vortex malaise of 2014; especially when it comes to insurance coverage issues and disputes with insurance carriers.

Yesterday, I was on a flight to sunny South Florida to meet with a client, and ran into a large loss adjuster who works for one of the major insurance carriers heading the same way. When you meet a fellow adjuster or colleagues who are in the business, usually the first question is to ask if you are busy. This seasoned adjuster side tells me the claims are rolling in from the areas that were affected in the big freeze caused by the “polar vortex” last week. It seems his company is so overwhelmed, that they have staffed call centers with independent adjusters just to handle the call volume.

While the national press is full of politicians pontificating about what Congress has done (as in “done in”) to tens-of-thousands of property owners in the very ill advised legislation called Biggert-Waters Flood Reform Act (B.W.-12) known as the National Flood Insurance Program Reform Act, not to be outdone, the regulators and political types in Tallahassee have been busy as well.

First, a little commentary on Washington DC, and no, not the budget or government shut down.  What I am talking about is the legislation for the National Flood Insurance Program reforms that was voted on by a majority of your elected congressional officials without any debate, given that the Biggert-Waters legislation was attached to a transportation bill and thus never saw the light of day.