Tracking Hurricane Ike Claim Litigation in Southeast Texas drives home the need for Errors and Omissions coverage for adjusters

June 6, 2009

This website posts newly filed insurance claim lawsuits for southeast TX several times each week.

http://www.setexasrecord.com/news/

Click on any of these links to find not only the suits against TWIA but other carriers as well. You’ll note that many of the cases against TWIA include the adjuster and the adjusting firm named in the complaints filed here is just one example:

http://www.setexasrecord.com/news/219283-latest-hurricane-related-insurance-suits-filed-in-jefferson-county

You can track the cases going all the way back to the month Ike hit.

This should drive home the seriousness of carrying E and O these days. We have two other posts on this blog with advice fromwww.cplic.net who specializes in carrying Errors and Omissions coverage advising adjusters should be carrying their own E and O coverage and not relying on coverage by the adjusting firm.

https://dimechimes.wordpress.com/2008/02/08/errors-and-omissions-coverage-guest-bloggers-dale-moore-client-relations-director-for-cplic/

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Texas Senate Bill No. 14- View the issues- Deals with Claim Disputes and changes to damages allowed on TWIA Claim Disputes

May 21, 2009

Attorney Chip Merlin (consumer advocate attorney)  provides the following two blogs on Texas Senate Bill No. 14 due to some changes proposed on claim dispute handling against TWIA:

http://www.propertyinsurancecoveragelaw.com/2009/05/articles/hurricane-ike/proposed-twia-law-smacks-hurricane-ike-claimants/

Attorney Chip Merlin has a 2nd blog up recommending TX residents take proactive steps to contact their representatives in this blog. Note also in the first link above that Merlin does include a link to the Senate recommended changes on TX Senate bill No. 14

http://www.propertyinsurancecoveragelaw.com/2009/05/articles/state-legislation/what-twia-policyholders-need-to-do-now-to-stop-the-bad-legislation/

 

I did some basic research on the web and the Texas Senate discussion on their passage of this bill  in their website post of April 30, 2009 does not address the changes that Merlin writes about  and I’m sure many others are concerned about:

http://www.senate.state.tx.us/75r/senate/Archives/Arch09/p043009a.htm

Now to see if we can find some opinions on this from the TWIA side……………

Here is what the TX Department of Insurance currently has up on their website about complaint resolution process with TWIA:

http://www.tdi.state.tx.us/consumer/storms/cpmtwiaclaims.html#resolving

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Update 8:30 AM- I no sooner got this blog up then Merlin posted an update on the activities on this legislation from the House side along with a link to a San Antonio, TX news article on the House action on their counter bill:

http://www.mysanantonio.com/news/45551952.html

http://www.propertyinsurancecoveragelaw.com/2009/05/articles/state-legislation/texas-house-representatives-pass-bad-insurance-bill-they-have-not-read/

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Update once again 10:30 am cst- Merlin provides a 4th blog about TX House version of the bill -here’s his post:

Merlin sends a 4th blog link out about some of the language disappearing from the House version that passed:

Summary:
After reading what actually passed, the House Committee seems to have struck all of the Senate language concerning 2210.552, and then added a new subsection (on page 36 of its 51 page bill) which reads : SECTION 40. Section 2210.552,…

View the entire entry:
http://www.propertyinsurancecoveragelaw.com/2009/05/articles/insurance/not-so-fast-on-calling-the-texas-house-bill-badthe-bad-language-mysteriously-disappears/index.html

Dern! I don’t want to be in violation of linking too often to a site- WordPress emailed a few weeks ago about limiting links to others sites too often so I do have to be careful!


Just a ClaimSmentor Moment #5- TWIA Roof Damage position the next issue in Ike Claim Litigation?

March 20, 2009

 

We have a rare minute today to get up a link to a series of blogs done by Insurance Consumer Advocate, Chip Merlin on his blog regarding issues he feels surround a policy by the Texas Windpool (TWIA) on Ike handling issues concerning their position on wind blown debris under shingles preventing them from sealing properly. Read his several posts done this week here:

View the entire entry:
http://www.propertyinsurancecoveragelaw.com/2009/03/articles/hurricane-ike/physical-direct-loss-caselaw-and-twias-roofing-memo/index.html


Guest Blog by Ray Hauser of ClaimSmentor-Ray Shares His Personal Story in our “Luck Where Preparation Meets Opportunity Series”

March 17, 2009

 

 

Claims Education Magazine published my article in 2008   “Luck…where Preparation meets Opportunity”.

To continue with our strong recommendation that newly licensed adjusters seek reputable training opportunities that are recognized in our industry, Ray is a prime example of  what independent trainee adjusters are going through to get a foot in the door for adjusting assignments.

Here is Ray’s story on the long  journey post license to fill in the squares due to  insurance company and adjusting firm requirements before he can receive assignments. Ray, we appreciate your time contributing to this series of articles. I thoroughly enjoyed your participating in our January/February 50 Hour Fundamentals of Property adjusting course. 

This article link will also remain on our Guest Blog page above with all other entries by contributing bloggers. I do think it is important to highlight what those wanting a career in claims can expect  (from the independent side) and we have several interesting blogs by others when they were new in the field. If I asked Ray what he has spent thus far on licensing, rope and harness classes, and all of his other course fees plus transportation and lodging, I would guess he is in the 7,500 to 10K range. I see this regularly thus my push on looking for other sources for this education.

                  Getting Started in Adjusting by Ray Hauser

 

After I completed my 4 day licensing course I became aware very quickly that the process of finding work may be just a little harder than what I had expected. Many of my fellow course-mates fell by the wayside believing the task was next to impossible. Company after company stated on their websites that they required either a  4 year degree, or at least 2 years of experience, neither of which I had. Here I am, just a few months down the line, with a totally different perspective in terms of what it takes to find a job. What’s changed? Knowledge! The claims companies want knowledge, and they need to know you have the ability to settle a claim and leave the insured with a good experience. Knowledge and customer service drive this train! We adjusters have to understand that the claims companies are not going to hand out jobs to people with just a 4 day crash course in insurance and a 3 day course in Xactimate! That kind of knowledge is only the starting point. So the question becomes, “What else do I have to do, and where do I go to get it?” Of course it’s always beneficial if you start with some construction and customer service experience. I’m a new adjuster too, so believe me when I say “I don’t have all the answers”. But here’s my opinion.

 

First, you should register on web sites that offer information that can help you build your resume.

 

There’s no better place to go than to ClaimSmentor.  Here’s a website that’s a source of information not readily found anywhere else. Anything to do with insurance is found right here. The gal that runs it, Debbie Moroy (debbie@dimechimes.com), has dedicated her life to training new people. She started her career in 1973 with State Farm, and started the adjusting aspect of it over 26 years ago. Who better to learn from? Reading her resume is like reading a dictionary:

 

State Farm Basic, Intermediate, Commercial, and Management Schools. Vale Tech Residential Estimatics,Haag Roofing School, Georgia Arson Fraud School, many others too numerous to list. Have all 5 State Farm certifications to include wind, estimatics, commercial, earthquake, etc.. Have completed IIA, AIC, and 9 parts of CPCU.

 

Because of her reputation in the industry and the fact that she’s so well respected, and knows so many people after these many years, it’s my opinion that having her knowledge as your foundation in claims adjusting is absolutely paramount and priceless!

 

Once you’re registered on her site, you have access to up to the minute information on certification courses, other website links, insurance industry news bulletins, magazine articles, and far too many other items for me to list here. Everyone getting started should take her 50 hr Fundamentals of Property Claims course. In that course you’re taught : Contents Claim Handling Guidelines, Additional Living Expense Claim Handling, Condo Master and Condo Unit-owner Claims , File Documentation Requirements , Carrier Service Standard Expectations,  Insured/Agency Communications, and so much more. “ The class is designed to fill in major gaps of important things you need to know. The course does not cover the estimate software programs and scoping classes but concentrates on the majority of other things that are a must to know before you handle your first claim. You cannot go out in the field and “wing it” and learn as you go when dealing with consumers who have bought a policy expecting “above and beyond” service”.Then, you use the information from that course and on that website to move forward in your search for more certifications and courses.

 

Another very good idea is to get as many licenses from as many different states as you can. That way, if a hail storm hits Georgia, and you have a Non-Resident license for that state, you can be used to work the storm without having to wait for a state declared emergency. You become far more valuable to the claims companies than other adjusters only having one license from their State of Residency. Sircon is a great site for acquiring other licenses for a nominal fee. In most cases, another licensing test is not required.

If possible, pair up with another adjuster you’ve met at your local Claims Association or elsewhere, and mentor with them for a short time. 

 

Immediately after I got my license, Hurricane Ike hit the Gulf coast states. Everyone was in demand. I worked a number of claims for The Mission Group  in Beaumont, Texas. Fortunately, I had a great CEO with a lot of patience. I’d partnered up with somebody who had procured the job, but had about as much experience as I had. Ultimately, the number of mistakes we made was embarrassing. But Mr. Phil Spotts went into the training mode and demonstrated the finest managerial traits I’ve ever witnessed. To this day he’s still a hero of mine! Talk about performing under pressure by training a couple of newbies in the art of adjusting. It was a pleasure to witness, yet embarrassing to be a part of. 

 

Shortly thereafter, I joined a couple of other course-mates and proceeded to take a Two Story/ Steep Roof Rope and Harness course from Kevin Kramer  (k.squared@earthlink.net) in Montgomery, Texas ( great course!). Apparently, for those that have that certification, they’re the first to be called out and the last to leave because they can handle all roofs, not just the easy ones. Kevin also sells an OJT Training Manual that has lots of very good information in it concerning construction, scoping, roof calculations, roof pictorials, estimating interior damage etc etc. It’s a very good manual to have in your library when you’re trying to gain knowledge.

 

Another great manual to have is one published by Richard Beckner . He gives in depth details and step by step instructions in using Xactimate. It truly is geared for the adjuster having problems in using the software. It’s one of the best manuals I have. It can be accessed at: www.learnxactimate.com .

 

After my R & H course we proceeded to Pilot Catastrophe Services Inc. in Grande Prairie, Texas, hoping to acquire a successful evaluation, then 4 days of additional training in Allstate, Integriclaim, and NextGen.

 

 I’ve just completed a Citizens certification class in my search for a job in Daily Adjusting here in Florida, and I have 4 more certifications scheduled.

 

So, in summary, you need to have knowledge that you didn’t pick up on your licensing course. Knowledge like measuring roofs, replacing the shingles with the appropriate amount of waste rounded up to the nearest shingle bundle, replacing or repairing fencing…..depreciated or not depreciated? What are the important things you have to ask the insured when you’re making first contact and arranging an inspection? If you can’t answer these questions, you just need to take the appropriate training. It’s all out there. You just have to access it. 

 

Family members have asked, “Who will I work for?” The answer to me is obvious. I’ll work for anyone wise enough to hire me, because I’m going to be prepared by being ready to go to work, educated enough to do the job, and wise enough to only hand in great claims. I’ll get my local adjuster in town to preview my work if I have to. But my claims will absolutely be as good as anyone’s.  I am not going to be the first one to go home after a storm because of my shoddy work.  And hopefully, I’ll be one of the last ones working the storm!

 

           

Ray Hauser, Port Orange (Daytona Beach), Florida

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To View more information about independent adjuster Ray Hauser, you can view his Linkedin Profile here.

To Join our Claims Industry Group, you can view our Linkedin Profile here.

 

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Ray we thank you for sharing your story and also for your testimonial about the ClaimSmentor online claim mentor group. Deb