One of the things I like about blogging, is that the tips and advice you provide policyholders about issues they are having with their insurance claims stays up indefinitely and can assist people having the same claim problems. I recently responded to reader question from a 2013 guest blog post on the Merlin Law Group Property Insurance Coverage Law Blog that I had the privilege of contributing to. The article titled: Insurance Companies Using Preferred Contractors to Settle Claims Not in Policyholders Best Interest discussed how insurance companies send out their preferred vendors who then try to control costs to the consternation of the policyholder.

Hurricane Irma insurance adjusting practices in the Florida Keys are coming under scrutiny by the Monroe Country State Attorney. This information came to me via a short audio clip from a radio broadcast aired by US 1 Radio News that covers the Florida Keys. In this broadcast, you can hear Monroe County State Attorney, Dennis Swartz sharing his concerns about insurance company adjuster practices in dealing with policyholders who suffered losses from Hurricane Irma.

I usually don’t talk about Hurricane season or disaster planning this early in the year. But yesterday, a daily weather blog by professional meteorologist Mr. Rocco Calaci who we have great respect for mentioned the following:

“Switching gears…yesterday by former NOAA meteorologist Mr. David Dilley gave a webinar on the upcoming 2018 hurricane season.  Though he provided substantial supporting evidence of his projections, the numbers he stated for this year’s hurricane forecast were sobering.....

This year’s “WIND” conference in Orlando, Florida marks the 18-year anniversary that folks from all over the U.S. have gathered to network, learn, and in many instances, conduct settlement talks on active cases to resolve issues involving wind losses and other perils covered by property insurance. Without a doubt, this conference was very successful and well attended with a reported headcount of around a thousand professionals from various disciplines. However, I was somewhat surprised the attendance was not greater given what happened during the 2017 hurricane season. 

Following this year's historic hurricane season, it has been great seeing and catching up with some of the best of the best in the property insurance claims industry! The Windstorm Insurance Network (WIND) is a professional association founded in 1999 and the organization offers elite education, industry insight and unique networking opportunities with representatives from all facets of the property insurance claims industry. This year, I served on an expert panel, "Where Wind Meets Fire" speaking about windstorms and how they exacerbate loss and damages resulting from fire, smoke, soot and ash in many different States like Gatlinburg, Tennessee, many parts of California and even on I-4 driving over from Tampa to Orlando.

Your property or business suffered damage during Hurricane Irma. You promptly filed a claim or had a public insurance adjuster document and file the claim for you. A check from the insurance company appears in the mail. Great! How easy could it be? But wait, there’s a catch…..on the back of your check there is language that states you are releasing the insurance company from any further costs related to the claim.

Most homeowners and business people do not understand the complexities of estimating repair costs. Even with a policy in-hand, there is much to be interpreted and many unique factors that can impact each claim. As the recovery process for Hurricane Irma continues, we’ve received anecdotal evidence from independent adjusters who are telling us they are submitting their estimates and reports only to have the carriers send them back or make in-house changes without their knowledge. Basically they find out the estimate they wrote was chopped up to save the carrier money. This is not happening everywhere, but enough to cause me concern.  

By now folks in Florida are finding out how little they are going to get paid for their insurance claim damages from Hurricane Irma. Our office is being bombarded with calls and emails from policyholders seeking help and answers about their property insurance losses from Hurricane Irma. Not surprising a lot of the frustration is about the fact that their claim file was closed without payment due to a subjective opinion by independent insurance adjusters working for some insurance companies.

The title for this blog popped in my head based on a question sent into our firm about property insurance policy adjusting practices and procedures related to Hurricane Irma claims. Here is the question sent in from a resident in one hard hit area of Florida:

Policyholder Question: I received a claim check from the insurance company and they have deducted depreciation for my roof. It is a large number and I have read a few different answers related to my question. If I have a replacement value insurance policy, can they hold depreciation? Do I really need to put $20,000+ out of my pocket until a time in the future when they might release that depreciation to me?

Q. Does the insurance company pay Overhead & Profit to the insured in Florida for reconstruction of property damage? What percentage is allowed?