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Inventory and evaluation of contents loss sa17245
- 1. Inventory and Evaluation of Contents Losses Contents National Claims Assignment Center: 1-888-907-5907 3 Continuing Education Credits National Claims Assignment Center: 1-888-907-5907
- 2. A Moment of Silence
- 9. Dating from the late 1800s, and painted by the Pre-Raphaelite painter, Gabriel Max. Would be expected to fetch over $750,000.00 at auction. National Claims Assignment Center: 1-888-907-5907
Editor's Notes
- Introduce the room. Any owners want to speak? Point out that this is not a Paul Davis commercial but that you have a tendency to say “I” or “we” and that you mean that to be taken generically also point out that some of the examples are on Paul Davis letterhead because that’s what you have access to, any good contractor should be able to supply similar paperwork. Talk about your experience in the field of insurance restoration and construction. (short bio) Talk about how you run a seminar. EXAMPLE: It is not my intention to stand here and teach a group of insurance professionals how to do their job or to preach about how I do mine. My hope is to facilitate a discussion among professionals so that as a group we can take advantage of the wealth of information in this room. Invite contact. Please take my card and if I can be of any service or if you have any questions feel free to contact myself or any of my 230 Paul Davis owners directly. We invite and look forward to that contact.
- If everyone could please take a moment to switch your phones or pagers to vibrate. We realize and appreciate that all of you are taking time away from your offices to be here. So should the need arise feel free to step out of the room and take important calls but realize that the State does have minimum attendance rules and be aware of the people around you. Before I start I’d like to get a feel for who’s in the room. How many of you are adjusters? Agents? Agents that handle claims? What are you looking for in this class? What information would you like to take back to your office?
- Has anyone here dealt with or had a claim that included contents? Do you have an approximate time that it took to close that portion of the claim? The major difference is that claims with inventories don’t have as much emotional baggage. A homeowner has to process the claim if no inventory exists and that means grieve or come to terms with each item lost. When an inventory exists or is handled by a third party the homeowner isn’t forced to physically touch each item. The other major difference, and we’ll talk more about this later, is the remove & reset, clean and store price versus the replacement price. We had a loss in PA recently that perfectly illustrates this. We responded to a large loss fire that required a lot of repair and replace throughout the home. The house had a large kitchen with 32’ of granite countertop but the cabinets themselves were severely damaged and required replacement. We removed the counters, cleaned them, stored them for two months and then re-installed them at a cost of just over one thousand dollars. The cost for replacement would have been over $32,000.00.
- It’s difficult enough for an adjuster and a home owner to come to an agreement concerning depreciation but without an inventory they also need to decide which of these cameras existed.
- With pre-loss inventories there can be no question that an item existed, it’s condition and age. All of the big questions can be answered before a claim ever happens.
- From the agents perspective a contents inventory before or after a claim will increase client retention (checks to homeowners faster), increase premiums (correct contents insurance on high dollar homes) and manage your exposure (you can’t calculate risk without the facts). From an adjusters point of view an inventory will shorten the life of the claim and control leakage.
- A fairly standard policy clause is the definition of insured value. A proper inventory will give a comparison of the most common variables.
- The entire system is based on the assumption that you and your company do not want to be responsible for guessing at the value of any item.
- Before this painting went to the junk shop it was hanging in a resort hotel that burned to the ground. However before the building became a resort it was a private residence. This painting had belonged to the original owners and was hanging in one of the halls when the estate sold the property. The resort took over and the painting wasn’t moved. After the fire someone (an adjuster, a insurance restoration vendor, a demolition person) saw the painting and felt that because it was hanging in the hall of a hotel it didn’t have any real value. Did anyone know what they where throwing in the trash? And again do you want your company or someone in your company to be responsible for that decision?
- No standard method exists yet but any usable method will include these options.
- CLOSE TO 50 MINUTES? Any method that can’t take this into account isn’t worth using.
- The system chosen must allow for the fact that not everything can be labeled in the same way and must take into account the variety of items in today's standard household.
- BREAK! 50 MINUTES? One of the main problems we face in restoring contents is the damage caused after the fact. After the break we’ll go over some examples of how to properly handle documents.
- I’ve chosen documents to use as an example here because every contents situation is going to include some document restoration. One of the first things we learned at Paul Davis when we decided to get involved in contents restoration is that we had to learn how to become movers. Every item has a specific way that it should be packed, moved and protected. Along with knowing the best method for restoring contents we had to learn the best methods for handling them. READ SLIDE
- Again these are just some common items that have to be dealt with. READ SLIDE
- Story about things being moved to protect them from flood and then being lost or forgotten. Are they found later? Does the insurance company recover it’s money?
- Every situation is different and we are not here to recommend one method of tracking over another but rather to point out the importance of having a pre-established method in place.
- This is the one slide that I don’t have notes on. Has anyone got a story about a partial return that went wrong and there was no proof?
- So….what should any good contents system have?
- The bulk of this section deals with drying items. For the most part everything is easily cleaned if it’s done quickly enough but almost every step of any loss can lead to water damage.
- I give a lot of seminars and people that have seen me a few times notice that no matter what the topic is I end up talking about drying. There was a fire but my concern is drying. The reason is well illustrated here. If a computer has smoke or soot damage the correct way to clean it is by immersing it in an ultrasonic tank. Now the computer is clean but is it ready to be turned on? The majority of items that are restored get wet so the real problem is drying. A question that’s sometimes asked at this point is why does everything need to be cleaned? There was a kitchen fire, why are you cleaning the bedrooms? I have a short movie here that really demonstrates how aggressively smoke and soot move.
- ALMOST SECOND BREAK. Splits O2 particles in two and releases them. When an O1 particle hits an O2 particle it creates an unstable O3 particle that immediately explodes becoming two O2 particles. The system works by diluting the odor to the point of non-existence. Not safe for prolonged exposure.
- VaporTek is a brand name and patented system. Is safe for use in occupied spaces but not effective in all situations.
- Masks odors. SECOND BREAK. We’ll talk about some drying methods when we return.
- All methods of drying use the same three ingredients the only question is ratio.
- READ SLIDE
- READ SLIDE
- Sublimation-the action of a solid becoming a vapor without becoming liquid.
- READ SLIDE
- READ SLIDE
- Financial records that must be kept for three years. If possible walk through a warehouse now.
- The next two slides show some common policy verbiage. Your carriers may be slightly different but the idea will be present.
- READ SLIDE
- READ SLIDE
- The Pareto Principle – In 1941 Joseph Juran discovered and expanded on the work of Vilfredo Parento, an Italian economists that noted that 80% of income is earned by 20% of the people and further noted that the principle applies to other applications. 80% of consequences result from 20% of actions. It’s interesting to note that even today 80% of your computers processes are used to run 20% of your applications.
- Scheduled property has been inventoried and documented before the claim and added into the policy. Appraisal becomes an issue when high value or historic property is not scheduled. The following slides are from a presentation that I recently saw that was given by another company. I’ve included them here because even though they deal with one specific piece of the contents puzzle they give you a very good idea about the savings you can expect to see if the contents portion of a claim is handled properly. These slides are used with the permission of restoration Dry cleaners.
- Gross domestic product
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- READ SLIDE
- READ SLIDE
- This is an actual example of the saving you can expect if the contents portion of a claim is properly handled. The dry cleaning organization that gave me these slides had a fire in their warehouse. They had 238 claimants clothing stored at the time. The total cost for restoring the items in the warehouse had been $434,838.56 after the fire the cost to replace the same items was $2,428,226.65.
- We do have a Paul Davis Restoration contents cart and a Certified Contents Restoration professional standing by to answer any questions you may have.