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2016 Property Claim Trends – Regionality of Claims

Analyzing property claim trends presents a significant opportunity for insurance executives and adjusters alike to improve and plan for the future. Our Annual Claims Report provides many property claim trends that are valuable to property and casualty insurance claim professionals. One set of compelling statistics is the regionality of claims.

How claims are distributed by region provides powerful insights for everything from staffing requirements to expense reserve planning. This trend also has a significant impact on customer satisfaction rates. In the J.D. Power 2017 US Property Claims Satisfaction Study, those regions with less claim activity (particularly less complex claim activity) had much higher claim satisfaction ratings than the regions with more volatile weather.

Distribution of Claims by Region

For the purposes of addressing claims by region, we segment the 50 states into the following regions:

  • Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont
  • Mid Atlantic: Delaware, Maryland, Pennsylvania, Virginia, Washington DC, West Virginia
  • Southeast: Alabama, Georgia, Florida, Mississippi, North Carolina, South Carolina, Tennessee
  • Southwest: Arizona, Arkansas, Louisiana, New Mexico, Oklahoma, Texas
  • West: Alaska, California, Hawaii, Nevada, Oregon, Washington
  • Central West: Colorado, Idaho, Kansas, Montana, Nebraska, North Dakota, South Dakota, Utah, Wyoming
  • North Central: Illinois, Indiana, Iowa, Ohio, Kentucky, Michigan, Minnesota, Missouri, Wisconsin

As seen in the map below, in 2016, the Southwest and Southeast accounted for the majority of the HVAC claims. These regions have the highest frequency of weather patterns accompanied by Hail, Lightning, and Flooding, which are all particularly damaging to HVAC systems.

Claims by Region - Blog-01

The Annual Severe Weather Summary by NOAA illustrates the number of reported tornado, hail, and wind events for each state. Broken out into our regions, Central West had the highest frequency of severe weather. However, the combined population only represents a little over 5% of the nation. In opposition, the West represents close to one fifth of the US population, but less than 1% of severe weather occurred in the combined states during 2016.

As you can see, the distribution of claims is influenced by a combination of severe weather and population. Accordingly, the Southeast and Southwest combined represent approximately 35% of the population and 35% of severe weather reports.

Theft Claims by Region

Theft and vandalism can occur anywhere, but as illustrated by the graph below, the frequency of theft claims in the West is much greater than in other regions of the country. This calculation is based on theft as a percentage of total claims for the region. As mentioned previously, the states that make up the West Region (Alaska, California, Hawaii, Oregon, Nevada, and Washington) accounted for less than 1% of the nation’s severe weather in 2016. Most of the claims in the West are thus less likely to be caused by severe weather and natural catastrophe events and instead are disproportionately impacted by other causes of loss, like theft and vandalism.

Property Claim Trends: Theft Claims by Region

According to Travelers Insurance, Theft accounted for 6% of their homeowner’s claims between 2009 and 2015. This puts the West region at more than twice the national average for Theft claims. Whereas areas that are more often impacted by severe weather, such as the Central West, Southwest, and Southeast, have much lower Theft claims frequencies than the national average.

Wear & Tear Claims By Region

In 2016, the Northeast, Mid Atlantic, and Southeast all displayed high frequencies of systems damaged by age-related Wear & Tear. Wear & Tear claims are commonly misreported, owing to (among other things) a lack of formal education on the part of local contractors for Lightning diagnosis. For instance, several symptoms that are actually indicative of Wear & Tear (such as burned / charred wires and acidic refrigerant) are commonly mistaken for Lightning damage.

Property Claim Trends: Wear & Tear Claims by Region

Additionally, in the Northeast, we see a high frequency of claims for damages to boilers. As boilers can have a longer life than typical HVAC equipment, many boilers fail due to age-related Wear & Tear. In fact, the average age of a boiler that we assess is 23.4 years, despite the fact that the average life expectancy of a boiler is closer to 15 years (Do It Yourself).  Certain regions, like the Southwest, Central West, and North Central, show a high frequency of Hail claims, leading to a much lower relative frequency of Wear & Tear related damages.

4 Options to Consider When Adjusting Hail Claims

The following article on “4 Options to Consider When Adjusting Hail Claims”, written by Matt Livingston of HVAC Investigators, was originally published on Property Casualty 360.

The first few months of 2016 ushered in severe weather storms of historical proportions.

According to the Property Claims Service unit of Jersey City, N.J.-based Verisk Solutions, first-quarter losses added up to an estimated $3.8 billion, 27% higher than the 10-year first quarter average.

Hail Claims
The Insurance Information Institute says hail causes about $1 billion in damage annually, with the highest number of claims reported in April, May and June. Hail guards like this one can help reduce some of the damage to HVAC systems.

This is in large part because of hailstorms that ripped across much of the country.

Download our adjuster guide to hail claims

Two devastating storms, separated by a week, hammered the Dallas-Fort Worth area in March. In April, San Antonio was hit with the costliest hail event in Texas history, according to the Independent Insurance Agents of San Antonio, which included hail up to 4½ inches in diameter, the National Weather Service said. Less than a month later, major hailstorms stretched from Kansas and Oklahoma, all the way to the Atlantic coast.

As a result of these catastrophic losses (and several other minor hail storms), many adjusters have found themselves in uncharted territory, tasked with handling heating, ventilation and air-conditioning (HVAC) losses they’re not accustomed to settling.

When encountering hail claims, it’s important to understand what HVAC parts are truly susceptible to damage, and what repair methods are readily available to return the insured to pre-loss condition.

Exposed and delicate

Aside from roofing and siding, HVAC systems account for the most commonly claimed residential property loss because of hail damage. The outdoor condensing unit, and more specifically, the condenser coil, is the most susceptible component of an HVAC system to sustain damage from hail. The condenser coil contains tightly spaced aluminum “fins” that surround the perimeter of the condensing unit. And because of they are made of thin, malleable aluminum, they can easily be damaged by any foreign object, including hailstones.

Because of their susceptibility to hail damage, some residential and commercial condenser coils are protected by hail guards (rigid metal casing with vents to allow airflow). However, most HVAC systems are not equipped with hail guards, resulting in dented, bent, and even torn fins, in rough proportion to the size of the hailstones during these events.

When it comes to returning HVAC systems to their pre-loss condition (regardless of whether they’re rooftop-based units or traditional split systems), the overwhelming majority of systems with confirmed hail damage can be restored with minor to moderate repairs.

In fact (much to the dismay of some local contractors), a “hierarchy” of repair options exists for hail-damaged HVAC systems, and should be considered when faced with this type of claim:

Hail claims: HVAC repair hierarchy
This pyramid gives adjusters with a hierarchy for evaluating damage to HVAC systems.
Hail Claims: Before and after combing
At left, minor hail damage that dented the fins of the condensing coil of a residential split system condensing unit. At right, fins after combing.

Option 1: Comb the fins

The first (and statistically most likely) repair option in the hail repair hierarchy is to straighten or “comb” damaged condenser coil fins with a specialty tool designed for this specific purpose.

In fact, nearly 50% of all residential HVAC systems with hail-related damages assessed in 2015 could be restored to pre-loss condition using this repair method, according to the HVACi 2016 Annual Claims Report.

If an HVAC professional invests adequate time and care into the work, combing the fins of a condenser coil is often a simple and inexpensive way to rectify minor hail damage.

Hail Claims: Moderate Hail Damage
Close-up view of moderate hail damage to a commercial unit.

Option 2: Replace the coil

If the hail damage proves too extensive to comb the condenser coil fins, the second step in the repair hierarchy is to repair the HVAC system by replacing the condenser coil itself.

Thirty percent of the hail claims assessed in 2015 resulted in this repair recommendation following an onsite investigation of the system damage. Many condenser coils are stocked at local HVAC distribution centers or manufacturer warehouses, and in other cases, can be produced by the manufacturer “on demand” if needed.

Hail Claims: Major Damage
Significant damage to a commercial rooftop package unit.

Option 3: Replace the condensing unit

If the condenser coil is no longer available, or the lead-time for the coil production is too long, adjusters may opt to replace the outdoor condensing unit or packaged unit.

As the third step in the hail repair hierarchy, this repair option is required less often than a combing (step 1) or replacing the condenser coils (step 2). That said, condensing unit replacements were required roughly 17% of the time for residential hail claims last year, and remain a viable repair action of last resort.

Option 4: Replace the system

If replacing the condenser coil isn’t a viable repair option, and the condensing unit replacement results in a significant mismatch with the remaining internal equipment, adjusters may be compelled to authorize a full system replacement. However, it’s important to note that this scenario is highly unlikely and very infrequent. In fact, only 5% of residential hail claims in 2015 required a full-system replacement (meaning 95% of hail-damaged HVAC systems can be repaired and returned to pre-loss condition).

HVAC systems damaged by hail very rarely require replacement. When handling hail losses, adjusters who receive a local contractor’s estimate stating that full system replacement is required should view to do some additional digging. Data suggests that other options are not only available, but are likely to be the prudent path to system restoration.

Catastrophe Claims and Their Effect HVAC Claims

Natural disasters and the resulting catastrophe claims were at a four-year high in 2016, according to Aon Benfield. The economic impact of these catastrophes was, globally, two thirds more than in 2015 (Munich RE). Moreover, North America suffered its highest number of natural catastrophes in more than 35 years. While natural disasters are an unavoidable part of the property insurance industry, the resulting catastrophe claims present significant challenges for both P&C insurance carriers and individual adjusters.

Without the proper diagnosis and settlement tools, catastrophes can make predicting risk and estimating HVAC damage reserves very difficult for carriers. Additionally, laws that require all claims (even those from a catastrophe) to be processed according to strict deadlines put catastrophe claims at an even greater risk for indemnity leakage. By evaluating claim data from historical catastrophes, carriers can better understand and anticipate the downstream impact of future losses from catastrophes.

For adjusters, catastrophe claims can be an extremely difficult task. Not only are these types of claims physically and emotionally draining, but typically, more claims to investigate often exist than there are hours in a day. However, adjusters cannot simply settle for replacement of all equipment when a repair is viable ― just because they need to close more files. By analyzing data from other catastrophe claims, adjusters can better understand when they might want to bring in an expert to evaluate the HVAC portion of the claim to help them settle expediently and accurately.

Catastrophe Claims

To help P&C insurance carriers and adjusters prepare for and handle catastrophe claims that include HVAC equipment, we have selected three notable catastrophe events from 2016 for analysis: Spring Texas Hailstorms, Louisiana’s August Flooding and Hurricane Matthew.

Spring Texas Hailstorms

The months of March and April, 2016, ushered in some of the largest hailstorms on record, resulting in more than $4 billion in property damage in portions of Texas. According to the Insurance Council of Texas, the only collection of storm events with higher damage totals in the history of Texas (across all perils) was Hurricane Ike in 2008. Most of the damage occurred in the Dallas-Fort Worth and San Antonio areas, with some property owners suffering repeat losses between March and April (experiencing hail up to 4.5 inches in diameter). With an estimated $1.36 billion in damage, the April 12 San Antonio storm was the costliest single hail event in Texas history, according to Insurance Journal.

Catastrophe Claims - Spring Texas Hailstorms Repair vs. Replace

While the 375 Texas hail events in March and April of 2016 were catastrophic, the HVAC systems damaged by hail were largely repairable. 93% of HVAC systems (across both residential and commercial claims) were found to be repairable after HVACi’s onsite assessment. This percentage indicates that, for hailstorm catastrophes, carriers should avoid settling for replacement of HVAC systems without an evaluation from an objective expert.

Louisiana Flooding

In August of 2016, devastating floods of historic proportions struck southern Louisiana. The two-day rainfall, which in some areas totaled more than 2 feet, had a statistical likelihood of a less-than-0.1 percent chance in any given year (1,000-Year Rain). These floods led to an estimated $8.7 billion in property damages (The Economic Impact of the August 2016 Floods in the State of Louisiana) and the death of 13 people in five Louisiana parishes (Louisiana’s Mammoth Flooding).

Catastrophe Claims - LA Floods Reported vs. Actual Cause of Loss

HVACi was enlisted by carriers to assess a wide variety of catastrophe claims because of the flooding in southern Louisiana. Most of these damages were claimed as Water, Lightning or Windblown debris. After a thorough technical assessment, it was determined that 25%  percent of these systems were, in fact, damaged due to age-related Wear & Tear, and 6 percent were in proper working condition at the time of the assessment. This data proves the necessity of determining the actual cause of loss to HVAC equipment, even when it is part of a catastrophe claim or carriers at risk of indemnity leakage.

Hurricane Matthew

Hurricane Matthew, which had more of a direct impact on the Caribbean, Cuba and Haiti than the United States, made its way up the coast of Florida on October 7, 2016. By the time it made landfall in South Carolina the next day, Matthew had been downgraded to a Category 1 hurricane. While the wind damage from the hurricane could have been much worse, the storm surge and flooding that ensued devastated the Southeast U.S. coast.

Storm surge caused the tides to rise to levels never recorded in some areas of North and South Carolina (National Weather Service). The worst damage came in the days immediately after the hurricane, with coastal rivers rising to their highest levels since Hurricane Floyd in 1999. Hurricane Matthew resulted in a death toll of 46 in the United States. Air Worldwide estimates the cost to be more than $6 billion, and over 19,600 National Flood Insurance Policy claims were filed (FEMA).

Catastrophe Claims - Hurricane Matthew claims by loss state

HVACi assessed claims in all five states affected by the hurricane, with the majority of the claims occurring in North and South Carolina. The most frequently claimed cause of loss was Wind damage, followed by High Voltage Surge. After a thorough onsite assessment, 30 percent of the systems were damaged due to age-related Wear & Tear and 5 percent were not damaged at all. This data drives home the need for carriers to utilize an objective expert to determine the cause of loss to HVAC equipment, even when it is part of a catastrophe claim, so as to better control indemnity leakage.

HVACi Releases 2017 Annual Property Claim Report

Carriers Recaptured Millions in Indemnity Leakage by Consistently Using Third Party Experts to Help Settle Claims Accurately New data released in HVAC Investigators’ 2017 Annual Claims Report arms insurance carriers with powerful information about property claim trends

Charlotte, NC February 22, 2017  ̶  HVAC Investigators (HVACi), the nation’s leading provider of HVAC and Refrigeration damage assessments for Property & Casualty insurance carriers, announced the release of its highly anticipated 2017 Annual Claims Report today. The data in HVACi’s report provides an opportunity for carriers to discover where indemnity leakage can be controlled and thereby realize significant savings. Furthermore, the statistics presented in the report allow carriers to improve accuracy when setting indemnity and expense reserves. This information underscores the importance of establishing a standard process to handle HVAC claims consistently.

Distributed to Property & Casualty insurance carriers nationwide, the report includes statistics from many thousands of actual claims assigned to HVACi by the nation’s top carriers. The figures are derived from the results of both onsite inspections and desktop reviews of residential, commercial, and large loss claims in all 50 states, for all causes of loss, and across all major equipment types and manufacturers.

The Annual Claims Report includes popular topics that carriers have come to rely on, such as Claim Accuracy, Reported vs. Actual Cause of Loss, Repair vs. Replace Frequency, HVAC Claims by Region, HVAC Claims by System Type, and Frequency of Coverage by System Age. This year’s report also includes many new categories. One such addition is a section devoted to analyzing catastrophe claims and natural disaster events in 2016. Also new to this year’s report is year-over-year trending for statistics such as average claimed amounts, percentage of theft claims, and refrigerant types. This data helps carriers isolate trends from anomalies and predict future claims more accurately.

“The 2017 Annual Claims Report suggests that HVAC claims represent one of the most significant remaining opportunities for property carriers to leverage third party experts for objective damage assessments in order to improve claim accuracy,” commented Reza Nikrooz, HVACi’s Chief Claims Officer. “By establishing a standardized process that includes the engagement of a subject matter expert for HVAC claims, carriers can achieve these savings without compromising cycle times or customer satisfaction ratings.” This report will be made available immediately to insurance claim professionals.

HVAC Investigators (HVACi) is the nation’s leading provider of HVAC and refrigeration damage assessments. Our prompt inspections, actionable reports, and national footprint help insurance carriers settle HVAC claims more quickly and with a higher degree of accuracy. To learn more about our services or to submit an assignment, please visit hvaci.com, email info@hvaci.com, or contact us by phone at (888) 407-5224.

2017 Annual Claims Report includes significant property claim data

The Dangers of Freezing Water & Boilers

The following article on “The Dangers of Freezing Water & Boilers”, written by Matt Livingston of HVAC Investigators, originally appeared in the Technical Notebook Column of Claims Magazine and was also published on Property Casualty 360

Stuck low water cutoff for boilers can be dangerous
Figure 1 and an inside view of a stuck, low-water cutoff in a boiler

As we enter the heart of winter and turn our attention toward cold weather conditions where freezing water can wreak havoc on commercial and residential property, the threat of catastrophic failure to boilers looms large (as seen in Figure 1).

Although failsafes against significant boiler failures do exist and continue to improve, they remain far from perfect.

One particularly susceptible failsafe is a boiler’s low water cutoff (LWCO). An LWCO is designed to alert the boiler that it does not contain sufficient water to “fire,” and prevents the boiler’s burners from igniting until a safe water level has been restored.

Installation of low water cutoffs 

Because these types of failures can lead to injury or death, most state and municipality codes require the installation of low water cutoffs for both residential and commercial boiler applications.

LWCOs are found in one of two designs: Electronic-probe (a more recent technological introduction) and mechanical-float (a traditional, lower-tech version, seen in Figure 2). For this article, we’ll focus our attention on the latter.

What is a mechanical-float LWCO? 

Mechanical-float low water cutoffs are the most widely used water-level safety device in residential and commercial heating boiler applications. These LWCOs are simple in design and function much like fill arms found in residential toilet tanks. As the water level drops in a boiler reservoir, the buoyant arm “floats” down until it reaches a point at which the boiler is unsafe to operate, and the switch turns the heating system off as illustrated in Figure 3.

Common issues with LWCO valves 

Despite their simplistic design, mechanical-float LWCOs are prone to several issues, which can have catastrophic impact if not addressed. These issues include:

  1. Stuck valves: Mechanical-float LWCO valves are in constant contact with supply water, and are exposed to minerals, dirt, rust and other total dissolved solids (TDSs). This prolonged exposure to TDSs can interfere with the designed function of the float, preventing it from moving freely up and down in line with the actual water level.
  2. Clogged LWCOs: Sometimes, TDSs and other impurities can prevent the free-flow of water through the LWCO, and can “trick” the LWCO into reporting that an adequate supply of water is present in the boiler, when in fact the minimum safe water level has been breached.

Consequences of LWCO failure 

If the float is prevented from moving freely and from sending the appropriate signal to the boiler controls (and the burner) to shut down the boiler when the minimum safe water supply level has been breached, the boiler may continue to run without water (or may be allowed to start without water present).

If a boiler operates without the necessary water supply, the heat generated in the boiler’s combustion chamber does not transfer to the water supply, and causes the burner, heat exchanger, and/or boiler tube(s) to overheat. With prolonged or repeated exposure to this condition, the walls of the burner, boiler or heat exchanger may weaken and ultimately crack, as seen in Figure 4.

Freezing conditions, when coupled with LWCO failure, can lead to catastrophic system failure. Should the feedwater pipes for the boiler become frozen (a common occurrence during cold winter months), the system will be starved of water. If the LWCO simultaneously malfunctions, the boiler will start and run without an adequate supply of water.

The cost of LWCO failure 

When the heat exchanger or boiler tubes crack or fail, the cost associated with the required labor and parts to repair the boiler (provided the parts are still available since boilers can remain in service for dozens of years) often outweigh the cost of the replacement. The failure of a relatively inexpensive component (usually between $200 and $600, plus installation) can ultimately lead to a residential settlement in excess of $10,000.

Mechanical-float failure prevention 
Mechanical-float LWCO valves should be regularly “flushed” to remove TDSs which can prevent the float from moving freely as the water level within the boiler changes. Most manufacturers recommend flushing the boiler at least once per season (some field technical experts say as often as weekly) by opening the “blow down valve,” which sits beneath the LWCO line and allows harmful deposits to escape. Boiler feedwater should be chemically treated to prevent scaling and to maintain proper pH levels for optimal boiler efficiency and performance.

The prevalence of boilers in residential and commercial heating applications makes the threat of LWCO failure real.

HVAC Investigators Releases 2016 Annual Claims Report

Third Party Experts Save Insurance Carriers Millions; New Data Released in Annual Claims Report from HVAC Investigators The 2016 Annual Claims Report from HVAC

Investigators arms insurance carriers with powerful information designed to help understand HVAC Claim Trends

CHARLOTTE, NC March 30, 2016 — HVAC Investigators, the nation’s leading provider of HVAC and refrigeration damage assessments, today announced that it has released its much anticipated 2016 Annual Claims Report. This year’s report clearly demonstrates that the complexity of HVAC claims – from current government regulations, equipment price fluctuations, and regional labor rates to limited parts availability – has made it all but impossible for carriers to accurately and predictably settle claims without consulting third party experts. Included data illustrates how the help of a cost-effective, third party technical expert can save carriers millions of dollars in settlement overpayments each year by helping carriers develop an effective claims handling strategy.

Distributed to insurance carriers nationwide to help them strengthen their understanding of current industry trends related to HVAC insurance claims, the HVAC Investigators Annual Claims Report examines data for both onsite inspections and desktop reviews of residential, commercial and large loss claims in all 50 states. The report reviews, in detail, tens of thousands of actual claims assigned to HVAC Investigators by many of the nation’s top carriers. Sparking impactful conversations about indemnity reserves, the data included affords property and casualty insurance carriers an opportunity to analyze current HVAC statistics. With the report’s real-world statistics on reported vs. actual cause of loss, frequency of claims by system type and brand, and age of system by type, insurance carriers are equipped with significant information for establishing accurate indemnity reserves and underwriting policies on HVAC equipment.

In addition to the data insurance carriers have come to rely on HVAC Investigators to publish each year, this year’s report introduces a new section devoted to how federal regulations are impacting claims. “From keeping our customers up-to-date on new regulations to taking a fresh look at statistics, this report is an inside look at how HVAC trends impact the property claims industry – giving carriers key information to make the process easier for their adjusters and policyholders,” commented Reza Nikrooz, VP of Claims. The report will be made immediately available to insurance claim professionals.

HVAC Investigators is the nation’s leading provider of HVAC and refrigeration damage assessments. Our prompt inspections and actionable reports help insurance carriers settle HVAC claims more efficiently and with a higher degree of accuracy. If you’d like more information about our services or to submit an assignment, please visit hvaci.com, email info@hvaci.com, or contact us by phone at (888) 407-5224.

HVAC Investigators New HVAC Course Approved for Continuing Education Credit for Texas and Florida

New HVAC Course for Insurance Claims Professionals Grants Continuing Education Credits in Texas and Florida
HVAC Investigators announces continuing education credits approval for new course that helps adjusters handle HVAC claims accurately  

CHARLOTTE, N.C., March 17, 2016  — “HVAC Fundamental Concepts”, the newest course from HVAC Investigators (the nation’s leading provider of HVAC and refrigeration damage assessments), has just been certified for continuing education credits in both Florida and Texas. Before achieving this key certification, the curriculum underwent a rigorous approval process to ensure it equips claims professionals with the skills and knowledge they need to settle HVAC claims with confidence.

The course is an innovative new way for HVAC Investigators to further their mission of helping clients lower the costs associated with HVAC claims. Deciphering HVAC claims isn’t an easy task for insurance professionals without a basic understanding of HVAC concepts: after completing this course, clients will be able to better determine the cause of damage and potential for repair. “With our strong reputation for HVAC subject matter expertise in the insurance industry, HVAC Investigators is uniquely positioned as the go-to provider of this sought-after course; we look forward to helping our clients take their claims processing to the next level.” Matt Livingston, Director of Customer Education and Vendor Programs commented.

“HVAC Fundamental Concepts” is offered as a complimentary service for clients of HVAC Investigators; the course is delivered at the client’s location or office. The course is approved for continuing education credits for Texas and Florida licenses. To register or access more information, call HVAC Investigators and select option 3, email education@hvacinvestigators.com, or visit https://www.hvacinvestigators.com/hvac-education-training/ and simply fill out the form.

HVAC Investigators (HVACi) is the nation’s leading provider of HVAC and refrigeration damage assessments.  Our prompt inspections and actionable reports help insurance carriers settle HVAC claims more efficiently and with a higher degree of accuracy.  If you’d like more information about our services or to submit an assignment, please visit hvacinvestigators.com, email info@hvacinvestigators.com, or contact us by phone at (888) 407-5224.

HVAC Investigators to Present Breakout Sessions at PLRB Claims Conference this April

Overpaying on HVAC Claims? Indemnity Leakage Control for Property Claim Professionals at PLRB Conference in San Antonio this April

The nation’s leading provider of HVAC and refrigeration damage assessments will offer two breakout presentations

Charlotte, NC – March 2, 2016 – Hail? Lightning? Ordinary Wear and Tear? HVAC damage is notoriously difficult to decipher for insurance claims, and insurers often settle without the appropriate knowledge about HVAC systems.  HVAC Investigators (HVACi), the nation’s leading provider of HVAC and refrigeration damage assessments, will help property claim professionals change that at San Antonio’s upcoming PLRB Claims Conference this April.  The conference, hosted by the Property & Liability Resource Bureau, is the largest and most diverse in the insurance claims industry, and this will be HVAC Investigator’s second consecutive year as session presenters.

Presented by Matt Livingston, Director of Customer Education and Vendor Programs for HVAC Investigators (and co-presented by Nate Rebarchik of Integrity Insurance), the program provides claims adjusters with a toolbox of skills they can utilize the next time they receive an HVAC claim.  “Light Commercial and Residential HVAC Losses” will cover HVAC system components, arming adjusters with the ability to know when to question an HVAC claim. There are key signs of questionable claims that adjusters need to be aware of, and this session will show insurers exactly how to discern between HVAC claims and determine which ones should be further scrutinized. The presentation will conclude with important statistics on HVAC losses and a discussion on the impact of current federal regulations in settling HVAC claims.

For property claim professionals who want better visibility on HVAC claims, registration is easy. Adjusters need to first register for the conference, and once registered, log in to their conference profile. Attendees can then visit “Registered Sessions” and select the time frame of the session they would like to attend: Monday (4/18 1:30 – 3:00 PM) or Wednesday (4/20 1:30 – 3:00 PM). They will then be able to select “Light Commercial & Residential HVAC Losses” from the list of break out sessions. More information about the conference, held in San Antonio from April 17-20, 2016, is available at the conference website and specifics about HVAC Investigators can be found at hvacinvestigators.com.

 
HVAC Investigators (HVACi) is the nation’s leading provider of HVAC and refrigeration damage assessments.  Our prompt inspections and actionable reports help insurance carriers settle HVAC claims more efficiently and with a higher degree of accuracy.  If you’d like more information about our services or to submit an assignment, please visit hvacinvestigators.com, email info@hvacinvestigators.com, or contact us by phone at (888) 407-5224.

2015 Annual Claims Report

CHARLOTTE, N.C February 17, 2015HVAC Investigators (HVACi), the leading provider of objective assessments of HVAC and refrigeration damage, recently published its annual report regarding Property and Casualty insurance claims for HVAC systems across the United States. The 2015 Annual Claims Report, based on data from thousands of actual claims, is distributed to insurance carriers across the country and is used to understand trends related to HVAC insurance claims.  The report is free to insurance professionals, upon request, by emailing info@hvacinvestigators.com or clicking here.

Several compelling new research topics have been added to this year’s report, including:

  • Individual Residential and Commercial claims data segregation
  • Large Loss claim data
  • Desktop review data
  • Frequency of LKQ proposals from insured’s contractors
  • Contractor quotes versus market pricing comparison
  • Frequency of claims by HVAC system type
  • Smoke / Fire claim data (including frequency by month and recommended actions)

“We’re excited about the new data that this year’s report includes,” said Matthew Livingston, HVAC Investigators’ Manager of Customer Education. “We’re confident that adding the latest research topics will provide additional insight to insurance carriers searching for better ways to settle HVAC claims.”

The 2015 Annual Claims Report includes data for both onsite inspections and desktop reviews of residential, commercial and large loss claims.  The claims data comes from all 50 U.S. states, for all major peril types, and all major equipment types and manufacturers.  This data provides Property and Casualty insurance carriers with an opportunity to analyze HVAC statistics and promote conversations around indemnity and reserves.

Consistent with previous studies, the 2015 Annual Claims Report clearly affirms that insurance carriers should seek, whenever possible, the help of qualified, objective subject matter experts to investigate claims against HVAC equipment.  Insurance carriers must stay current on trends, new legislation, and HVAC supply chain changes that are major contributors to settlement outcomes…a near impossibility for even the most progressive and well-educated adjuster workforces.

ABOUT HVAC INVESTIGATORS

HVAC Investigators is the nation’s leading provider of HVAC and refrigeration damage assessments.  Our prompt inspections and actionable reports help insurance carriers settle HVAC claims more efficiently and with a higher degree of accuracy.  If you’d like more information about our services or to submit an assignment, please visit hvacinvestigators.com, email info@hvacinvestigators.com or contact us by phone at (888) 407-5224.

Large Loss Claim Case Study

HVAC Investigators (HVACi) is the nation’s leading provider of HVAC and refrigeration damage  assessments. Its thorough investigations, swift turnaround time, and actionable reports enable insurance carriers to settle HVAC claims more quickly and with a higher degree of accuracy. After a recent examination of the traditional large loss claim process, HVACi discovered that these high exposure claims were not receiving the level of service that they warranted. To address this void, HVACi developed an investigation process specific to large loss claims. The following case study shows the impact of how these processes and procedures, along with well-equipped resources, improve how large loss HVAC claims are brought to a successful and equitable settlement.

Case Study