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Dealing With Insurance Companies - Rebuilding Your Agency

After a disaster strikes, you may find that your facility has suffered damage and that an insurance claim needs to be filed. There are steps that you can take before a disaster to make this process easier.

All insurance policies which affect the facility should be accessible as well as the name of the local insurance agent, the insurance adjuster, and the company which he/she represents. It might be useful to make copies of the policies and contact information to keep in multiple locations during a disaster watch. Be sure to note where the original document(s) may be found.

Determine beforehand what staff member will be responsible for the documents, for after disaster damage assessment, and for filing any potential claims. After a disaster, insurance agents want to know the scope of their liability as soon as possible. Also, the more quickly your claim is filed, the sooner your claim can be processed and paid. Just be sure that you have evaluated the full scope of the damage before making the claim.

Things to consider:

• If telephone service is still available, anticipate that the telephone lines will be busy. Reaching the insurance agency may be impossible for days or weeks. Ask a volunteer to determine if the insurance agency is open for business by driving to the main office. If open, leave a written request for the agent to contact appropriate staff or board members and include phone numbers and hours when they might be reached.
• Do not expect the insurance agent to call your agency or any member of the network after the disaster without a request that they do so. It will be the staff's responsibility to initiate contact, describe the type of loss, produce policy numbers to verify coverage, and to request an insurance adjuster.
• If possible, limit the number of people involved with the insurance company to just one staff person or one board member.
• It is often more prudent to delay settlement of claims until a full and thorough assessment can be made of the damages, in addition to the survey done by the adjuster.
• If the disaster is wide-spread in the area, the insurance company that has insured the agency property will probably contract with individuals and other companies to assess damages and adjust claims.
• Each insurance company which underwrites coverage may utilize a different insurance adjuster. Be prepared for dealing with more than one adjuster (for instance -- an adjuster from the flood insurance company, an adjuster from the vehicle insurance company, and an adjuster from the company underwriting general liability insurance on the agency building).
• If there is significant building damage, consider contacting an independent architectural engineer to survey the building and to submit an estimate of the damages.
• The designated staff representative should meet with the insurance adjusters to survey the loss, at the site of the loss.
• If there is a conflict over the type and amount of damages attributed to the disaster, the amount of coverage available, or the amount of insurance reimbursement funds due, the agency has the right to demand the assignment of a new adjuster.
• The agency should receive a written statement of loss from the adjuster (many utilize a computer form). The loss statement should contain the full name of the adjuster, the company for which he/she works (unless he/she is an independent adjuster), and the description of the loss. If the loss is building damage, the statement should have a room-by-room survey of the damage, a drawing of each room damaged, a listing of building materials to be replaced or repaired, and the cost of such repairs.
• Insurance adjusters utilize a manual which estimates the cost of replacing or repairing interior and exterior damages. For instance -- the manual lists the average cost of removing carpet by square yardage and the amount it will cost to install new carpet by square yardage. The loss statement submitted to the agency by the adjuster should be carefully scrutinized:

• Did the adjuster use the correct total square footage of the building when computing the needed materials?
• Are all computations correct with no mathematical errors?
• Were adequate amounts included for debris removal or site preparation?
• Is the amount offered for specific building materials or labor realistic in the after-disaster market?

It is best to take each activity to be accomplished and analyze the steps needed to complete the job. Receiving adequate compensation for damage to a roof, for example, must take into account all preparations for re-roofing -- removal of the old roof from the building, hauling away all debris, yard clean-up, replacing damaged rafters, purchasing new materials, installing new underlayment, installing new roof covering.

Are the amounts offered for materials and labor adequate? Following a disaster with significant building damage, area prices for all building supplies will probably escalate and remain high. Labor costs will also increase. Consider checking costs of materials and labor from area merchants and businesses to confirm the amounts allotted to the repair, and request that any amounts considered low be increased by the adjuster.

After all claims are settled and a check is issued by the insurance company and received by the agency, it is still possible to submit supplemental claims. Generally, claims are accepted up to a year after damage occurs. Remember that each insurance company has a grievance procedure and is overseen by the State Insurance Commissioner. Should the amount of the claim be in dispute, the agency is not forced to accept the offer made by the adjuster or the insurance company local agent. The local insurance agent can and should explain all grievance procedures.

If you want to confirm that an insurance adjuster is licensed or have questions about the adjuster’s actions, you can call the Agent Services Division of the NC Department of Insurance at 919-733-7487.

North Carolina also has Public Assistance funds available to non-profits and/or government entities that have sustained more than $1000 damage from a federally declared disaster. The Small Business Association may also have grant funds available to help

NC Public Assistance

NC Public Assistance Contact Information

Small Business Disaster Recovery Center

Be sure to check with the Federal Emergency Management Agency and the NC Department of Aging and Adult Services as well. They will know if any additional resources may be available to help repair the damage and get your agency operational again.

Federal Emergency Management Agency 1-800-462-9029 1-800-462-7585 (TTY)

State of North Carolina Department of Health and Human Services Division of Aging and Adult Services 693 Palmer Drive Raleigh, N.C. 27699-2101 Phone: 919-733-3983