The 2013 Annual Claims Report provides critical industry statistics regarding: reported damage versus actual damage, recommended settlement actions, repair versus replace frequency, recommended repair action by category, and frequency of claims per geographic region. The data was compiled using the actual results of thousands of HVAC insurance claims investigations across the United States, and provides an accurate representation of the industry as a whole.

“The impact of Superstorm Sandy is certainly reflected in the 2013 report, but the data clearly points to the ever-present disparity between reported cause of damage and what actually happened,” said Matthew Livingston , HVAC Investigators’ Manager of Customer Education. “Because of the complexity of HVAC claims, and the technical expertise required to accurately diagnose true cause of damage, it can be difficult for carriers to settle those claims consistently without outside assistance.”

The 2013 report also suggests that HVAC claims represent a significant opportunity for insurance carriers who lack HVAC formal education or subject matter expertise to leverage third-party, objective investigations to improve their claims accuracy – particularly in light of ever-changing market influences, including equipment price fluctuations, regional labor rates, parts availability, and the looming EPA regulations on the use of R-22 refrigerant.
The next report, revealing statistics from the first half of 2013, will be released in the third quarter.

Highlights of the 2013 Annual Claims Report:

Reported Damage vs. Actual Damage
A staggering number (34% of all systems evaluated in 2013) were ultimately diagnosed as “Wear and Tear,” “Not-Damaged,” or “Claim Withdrawn.”
Recommended Settlement Actions

The average claims accuracy was $3,659 per residential claim and $20,459 per commercial claim in 2013. Based on the average variance per claim, a typical Property and Casualty insurance carrier had a potential claims accuracy of more than $35,000,000 in 2013, had they engaged an outside HVAC claims expert.

Repair vs. Replace Frequency
More than 8 out of every 10 claims investigated by HVACi resulted in a repair recommendation to bring the insured back to pre-loss condition … or weren’t damaged at all.

Repair Action by Category
HVACi’s specific repair action varies widely based on the type of damage sustained by the HVAC equipment. “Lightning,” “hail,” and “theft/vandalism” are the three most common types of reported claims, and were sub-categorized based on recommended repair action. In each category, the frequency of recommended “minor” or “moderate” repairs was significant.

Frequency of Claims by Geographic Region
Despite the widespread damage caused by Superstorm Sandy, the number of HVAC claims in the Southeast still accounted for largest percentage of total HVAC claims for 2013 with 29%, immediately followed by the Southwest at 26%. The Northeast region accounted for 16% of all claims, up from 9% in the previous reporting period (the first half of 2012).

ABOUT HVAC INVESTIGATORS
HVAC Investigators is the nation’s leading provider of data and inspections for property insurance claims involving HVAC and Refrigeration equipment. The company provides timely inspections and actionable reports to help settle HVAC claims more quickly and with a higher degree of accuracy. For more information, or to submit an assignment, visit HVACinvestigators.com or call 888.407.5224.

For more information, contact:
Daniel McCollum , HVAC Investigators, 888.407.5224

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Another month into 2013 is nearly in the books and with that, HVACi has come up with another way to make your experience with us simpler and even more enjoyable. Not too long ago, Domino’s Pizza engaged their customers by providing an innovative pizza delivery tracker. If you are not familiar, the pizza tracker can be viewed on their website when you place an order. It lets you know the status of your pizza while it is being created. From the time the dough is being kneaded until the delivery driver is starting their car, you can track the progress of your order and get a better idea of how their process works and when you can expect to have that delicious pie arrive at your door.

We are always looking for new and exciting ways to improve our relationships with our clients. We know you want to get the pertinent information that you need as quickly and easily as possible. We know you want to stay informed and be updated without even having to ask. That’s why we have developed a tracker of our own so that you can keep up with your HVAC claims with just a few clicks of your mouse or taps on the screen of your mobile device or tablet. Our tracking system has six phases to let you know what steps have been accomplished in the claims process and what is soon to be completed. The tracker begins once the claim has been submitted and assigned to a claims manager as we begin our scheduling process with your clients. As steps in our investigation process are concluded, those sections of the tracker turn from gray to blue. Once the entire tracker is blue, the report should be arriving in your inbox within minutes.

As HVACi continues to grow and evolve, we do so while keeping your best interests in mind. We hope this tracker will provide you with the update you are looking for. We know the end product is what matters most. We will continue to provide the fast and reliable service that you expect, while always looking for better ways to improve your experience with us. We hope you find this tracking device useful as we work diligently to conduct our investigation and relay our findings to you.

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Here at HVACi we are dedicated to working hard to make your job as a claims adjuster a little less stressful. And now, if you’re busy and on the move, we’ve made it a lot easier to submit a claim, check claims status or contact a representative of HVACi. We have just rolled out our mobile website and now you can submit a claim no matter where you are from the palm of your hand. All you need is internet capability on your phone and you can visit our mobile site 24/7, just as if you were sitting behind your desk. Our mobile website was designed to be smartphone friendly. Everything is easily accessible and simple to read and operate. In today’s fast paced and chaotic society, you need to be able to get things done now and we’re devoted to giving you and your clients peace of mind with the fastest service imaginable.

So go ahead and give it a try today at www.hvacinvestigators.com. If you have a smart phone you’ll also have an option to download our HVACi app for direct access to our mobile site.

-AB

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CHARLOTTE, N.C., Feb. 13, 2013 - HVAC Investigators (HVACi), an established market leader providing insurance carriers across the country with heating, ventilation and air conditioning (HVAC) damage assessments, announced today the debut of their iCheck desktop review service to Property and Casualty insurance carriers across the nation.

The iCheck service offers insurance adjusters who are evaluating HVAC claims a simple way to verify repair or replacement estimates provided by local HVAC contractors.

“iCheck was introduced in response to growing frustrations in the adjuster community that an easy way to validate contractor estimates didn’t exist, without deep technical expertise or exhaustive research,” said Matthew Livingston, HVAC Investigators’ Vendor Relationship Manager. “The iCheck service ensures that HVAC equipment quoted is based on current market pricing and like-kind-and-quality (LKQ) parts.”

Adjusters can provide a copy of a local contractor’s quote to HVAC Investigators, and within four business hours, an HVAC Investigators processor will call the local contractor, verify parts and materials pricing and availability, adjust for local labor rates, validate level of effort, and prepare an actionable report. The report will definitively state whether the proposed estimates are within an acceptable variance of fair market pricing or should be adjusted based on real-world market factors.

The iCheck desktop review is offered at a simple, low cost flat rate pricing structure for residential and commercial claims of up to two systems. A pilot study of the service has revealed an average claims savings of $1,305 per residential iCheck review.

The complexity of HVAC claims continues to plague our clients, even in cases where field investigations aren’t warranted.” concluded Livingston. “The unique combination of significant time, stress, and monetary savings that iCheck provides prompted us to offer it nationwide. It’s a true win-win.”

ABOUT HVAC INVESTIGATORS

HVAC Investigators is the nation’s leading provider of data and inspections on HVAC property insurance claims. The company provides timely inspections and actionable reports to help settle HVAC claims more quickly and with a higher degree of accuracy. For more information, or to submit an assignment, visit HVACinvestigators.com or call 888.407.5224.

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With the unseasonably warm Winter season working its way through the new year and into February, Spring is just around the corner. And with the pleasant temperatures of the new season comes another not-so-pleasant one: lightning storm season. In the past here at HVACi we have seen an increase in claims submitted for lightning damage during the Spring and Summer months, specifically for damages to compressors in HVAC condensing units. More often than not, however, the actual cause of damage in these instances is NOT lightning! There are many other potential causes for compressor failures and we are here to help you understand what those causes might be.

There are seemingly endless ways that a compressor can “go bad” but for this article we’ll stick to the Usual Suspects: High Voltage Surge, Overheating, Contamination, and Refrigerant Floodback.

High Voltage Surge is a very frequent culprit in damaging the compressor. The prolonged electrical imbalances of voltage and currents often results in a failure of the compressor. Another cause for compressor failure is Overheating. This occurs regularly for reasons such as air in the system that raises pressures and temperatures, lack of suction cooling, and lack of regular maintenance. Contamination also can destroy a compressor. Acid is created when air, moisture, and debris from the atmosphere mix with the system’s refrigerant. Exposure to the acid can quickly destroy many internal components within a condenser, including the compressor. Finally, Refrigerant Floodback is another common reason for compressor failure. This happens when refrigerant gets into the compressor’s cylinder and causes pressures within the compressor to skyrocket, resulting in broken parts within it.

These are the usual suspects for compressor failure, and they are much more likely to occur than lightning. In 2012, 41% of all claims we received were reported as lightning damage. Following a thorough investigation, less than 20% of those claims actually sustained lightning damage. A lightning claim being authenticated as actual lightning damage is nearly as likely as your actual chances of getting struck by lightning (not really, but you get the point).

If you’ve seen the classic movie “The Usual Suspects”, you’ll understand why we refer to lightning as the “Kaiser Soze” of compressor failures.

-AB

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Statistics Conclude Third-Party Claims Assistance is Crucial for Accurate and Consistent Reporting; Southeast Leads in HVAC Claims

CHARLOTTE, N.C., Oct. 30, 2012 – HVAC Investigators (HVACi), an established market leader providing insurance carriers across the country with heating, ventilation and air conditioning (HVAC) damage assessments, recently published its 2012 semi-annual claims report. Distributed to insurance carriers across the country, the report revealed several compelling statistics across a multitude of HVAC industry trends that can help carriers make more informed decisions on their specialty HVAC and refrigeration claims. The report is free and available at request by emailing annualreports@hvacinvestigators.com. The next report is scheduled to be released in the first quarter of 2013 for all 2012 claims data.

Critical topics covered in the report, including reported damage versus actual damage; recommended settlement actions; repair versus replace frequency; repair action by category; and frequency of claims by geographic region, were closely analyzed following thousands of claims investigations across the United States, providing an accurate representation of HVAC property and casualty claims, year to date.

“The results were staggering.  The data clearly suggests that HVAC claims require consistent and accurate findings,” said Matthew Livingston, HVAC Investigators’ business development manager. “Because of the complexity of HVAC claims, and the technical expertise required to accurately diagnose true cause of damage, it can be difficult for carriers to settle those claims consistently without outside assistance.”

The report further suggests that HVAC claims represent a significant opportunity for carriers who lack HVAC formal education or subject matter expertise to leverage third-party, objective investigations to improve their claims accuracy – particularly in light of ever-changing market influences, which often include equipment price fluctuations, regional labor rates, and parts availability.

Highlights of the Claims Report:

Reported Damage vs. Actual Damage

No claim researched was originally reported as “wear and tear” or “claim withdrawn/not damaged”. However, following a field investigation, more than 38% of all HVAC claims were found to be in one of these two conditions.

Recommended Settlement Actions

The average claims accuracy per residential claim was $3,859 and $21,109 per commercial claim for the first half of 2012. The average variance per claim, when multiplied by the number of HVAC claims received by a typical property and casualty insurance carrier, will result in claims accuracy in excess of $37,000,000 in any given year.

Repair vs. Replace Frequency

Nearly nine out of every 10 claims investigated by HVACi resulted in a repair recommendation to bring the insured back to pre-loss condition.

Repair Action by Category

HVACi’s specific repair action varies by the type of damage sustained by the HVAC equipment. Lightning, hail and vandalism are the three most common types of reported claims, and were sub-categorized to include minor, moderate and major repairs as well as misreported/not damaged and full replacement. In every case, the frequency of minor or moderate repairs is significant while looking at all recommended repair actions.

Frequency of Claims by Geographic Region

Consistent with historical reporting trends, the number of HVAC claims in the southeast accounted for largest percentage of total HVAC claims for 2012 YTD with 25%, immediately followed by the southwest and north central regions at 16% and 14% respectively.

ABOUT HVAC INVESTIGATORS

HVAC Investigators is the nation’s leading provider of data and inspections on HVAC property insurance claims. The company provides timely inspections and actionable reports to help settle HVAC claims more quickly and with a higher degree of accuracy. For more information, or to submit an assignment, visit HVACinvestigators.com or call 888.407.5224.

MEDIA CONTACT: Julianne McCollum, Yellow Duck Marketing, julianne@yellowduckmarketing.com  704.271.9556

The post HVAC Investigators, Market Leaders in HVAC Damage Assessments for Insurance, Releases Semiannual Claims Report Exposing HVAC Claim Settlement Gaps appeared first on HVAC Investigators.

Thus iCheck was born. We wanted to provide an easy, quick, low cost checks and balances system to validate the invoice or make sure it is within market variance. We offer to turn around residential claim reviews within four hours. That made them happy. In our pilot program, our clients noted major savings from inflated invoices. That made them even happier. We hope you’ll give it a shot and we look forward to hearing what you think.

Stay posted for other exciting developments in 2013!

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