When you’re handling foundation loss claims, there are several things you should know. Alpine Intel’s Technical Education Manager, Jay Dykstra, will present the Understanding Foundation Losses Webinar to help attendees gain more insight into the construction and common damages that affect foundations.
In this webinar, you’ll learn about:
The basics of foundations and how they manage loads within a structure
The three most common residential foundation types
Common losses like settlement cracks, construction defects, impact damage, and more
Real claims that illustrate the evidence experts use to identify causes of loss
Adjusters who participate throughout the webinar are eligible for CE credit for their Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, Oklahoma, and Texas licenses.
Fill out the form to register for this popular webinar topic. If you can’t attend, you’ll still receive the webinar recording and presentation handouts after it takes place; however, previously recorded webinars are not eligible for CE credit.
If the more than 400 fires that swept through Canada this year have shown us anything, it’s that areas throughout the United States are vulnerable to wildfire impacts – even if they aren’t near the blaze. This makes it critical that adjusters understand wildfire risks to policyholders nationwide, including smoke or fire damage to their homes and property items like HVAC systems.
Wildfires are a threat to more policyholders, and losses from them require investigation.
1. It’s Not Just a Western Problem – and the Risk Is Increasing
The fact that California had more than double the number of fires and acres burned than any other state in 2021 shouldn’t overshadow how prevalent these events are in other parts of the country. Wildfires can affect the United States coast to coast. In 2021, Texas, North Carolina, Montana, and Florida rounded out the top 5 states for most wildfires. That same year Oregon, Montana, Washington, and Arizona had the most acres burned after California. Among the characteristics that impact whether a property is susceptible to fire are nearby vegetation and fallen timber, building materials and age, and weather conditions.
A variety of characteristics make properties more vulnerable to wildfires.
Another concern adjusters should consider is the increased proximity of residents to fire-prone areas. A study from the University of Wisconsin-Madison and the U.S. Forest Service proved that millions more people live in areas that are at risk to be in a wildfire’s path than previously. Property and data analytics company CoreLogic also reported that California had nearly 1.3 million housing units in danger of extreme wildfires, followed by Florida and Texas for most homes threatened as of 2022.
That makes wildfires – and the losses to homes and businesses that come from them – a risk to more policyholders. While many insurance policies cover fire damage to structures and personal property, wildfires may be an exception in high-risk areas. It’s essential for adjusters to know what is covered by an insured’s policy and to have an expert verify cause of loss before any settlement decisions are made.
2. Wind And Smoke Contribute To Loss Risks
A fire’s impacts can range from singe marks that affect only aesthetics to total devastation. But the flames are only a portion of the concern when it comes to wildfires.
Wind can spread the fire to larger areas by giving it the fuel it needs to keep burning or by picking up embers and taking them to nearby properties and vegetation. This contributes to new fires or heat exposures, according to a report by the Insurance Institute for Business and Home Safety.
Smoke drifting to properties away from a fire may cause losses.
Furthermore, wind patterns can influence areas that are nowhere near the source, including hundreds to thousands of miles from the fire location. While it’s not clear yet how many claims will come from the Canada wildfires due to smoke, policyholders throughout the Northeast could see, smell, and feel the smoke and ash that was carried by the wind in and around their properties. Smoke impacts include structural damages and losses to indoor and outdoor equipment such as HVAC systems and electronics.
The number of fires taking place and the risk to more policyholders may have adjusters thinking they should prepare themselves to immediately settle whatever wildfire-related claim comes in, but that isn’t the case.
3. Expert Assessment Is Key to Accurate Claim Resolutions
While wildfires can be potentially catastrophic for homes directly in their path, the same can’t be said for property farther away. Cleaning or repairs may be all that’s needed to return policyholders to pre-loss condition, and experts can determine scope of loss to help adjusters know how to proceed with the claim.
For example, many HVAC systems can be returned to pre-loss condition by a repair. The simplest resolution is safely washing soot and ash from the condenser coils in a way that doesn’t cause damage. When the air handling unit is running during the event, more repairs may be required such as cleaning smoke from the ductwork or evaporator coils. Individual components or the entire condensing unit may require replacement in extreme wildfire cases, but these are still considered a repair.
Property assessment experts will provide objective inspections to determine how much of the system was compromised or if repair costs or other extenuating circumstances, such as updated efficiency standards, would require a full system replacement. However, these scenarios are less likely than a repair.
This HVAC system had reported smoke and fire damage, but an expert assessment determined the failures were caused by wear and tear.
In addition to scope of damage, property experts can verify cause of loss. Investigations often determine equipment was damaged by another peril, including wear and tear, or that it was working properly at the time of assessment. According to the HVACi 2022 Annual Claims Report, 9% of assessed HVAC and refrigeration equipment was reported as having smoke and fire damage while only 6% of all equipment had verified failures from this peril.
Whether a fire-related loss occurs in California, Texas, Florida, or another part of the country, don’t risk settling a claim inaccurately. Alpine Intel and its suite of services, including HVAC and refrigeration investigators HVACi, can provide expert property assessments to determine cause of loss and scope of damage to give carriers what they need to confidently and accurately settle a claim. Submit an assignment to confirm these details before making a settlement decision.
Split systems, one of the most common types of HVAC systems, are susceptible to water damage. However, the amount of damage and need for repairs depends on the level of exposure.
Explore this interactive guide to learn more about the impact water damage can have on a split system and its components.
Join StrikeCheck Aug. 9 to gain more information about generator claims and the basics of portable and automatic standby generators while earning CE credit toward your adjuster licenses. Alpine Intel Technical Education Trainer Kevin Huelsman will present Know the Basics: Generator Claims Webinar as part of the Alpine Intel educational program. He’ll provide a general overview about this equipment’s operation as well as the failures that may result from a variety of frequently reported perils to make settling these claims faster and easier.
Fill out the form to attend Know the Basics: Generator Claims Webinar and learn more about:
The fundamentals of portable generators and automatic standby generators: overview and operation, pros and cons of each, and fuel types
Common failure modes stemming from lightning and high voltage surge, wind and hail, fire, and wear & tear
Real-life claim scenarios, including the reported cause of loss compared to what expert testing concluded
This course is eligible for CE credit for Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, Oklahoma, and Texas adjuster licenses.
Register now for this event to save your spot. If you can’t attend, you’ll still receive the webinar recording and presentation handouts after it takes place; however, previously recorded webinars are not eligible for CE credit.
Commercial HVAC claims may be more complex for adjusters to resolve than residential claims, since they often include multiple different types of systems with varied damages, or even multiple causes of loss. There is also a risk of claims leakage if the adjuster decides to settle for unnecessary replacements.
In our Complex Commercial HVAC Claims Case Study, you can read how HVACi’s team of experts identified the cause of loss to 35 different systems in a hail claim, including evaporative coolers, exhaust fans, and package units. You’ll also see how repair vs. replacement recommendations and market value pricing verification, included in every HVACi report, provided the adjuster with information for an accurate settlement.
Fill out the form to get your copy of this case study today and learn how HVACi provides actionable data for complex claims.
The Beyond the Basics: Advanced HVAC Systems Webinar has already occurred. You can watch the recording here.
Important: Pre-recorded webinars do not qualify for CE credit.
Go beyond split systems and package units to learn more about evaporative coolers, geothermal systems, make-up air units, economizers, and refrigeration systems, which are used by commercial and residential policyholders.
Fill out the form to watch Alpine Intel’s Technical Education Manager Jay Dykstra as he presents:
• An overview of more advanced HVAC systems, such as geothermal systems, economizers, and evaporative coolers, and how they work
• Descriptions of how perils and damages affect this equipment
• The significance of advanced HVAC system claims
• Results from real-life claims
Summer months see an uptick in HVAC claims as many policyholders turn on their air conditioning for the first time all year. Resolving these claims without an expert assessment may lead to inaccurate settlements based on wrong causes of loss; in 2022, 58% of residential claims involving HVAC and refrigeration systems were recategorized following an HVACi inspection. Make sure you know the actual cause of loss and get repair vs. replacement recommendations before you close the claim. Here’s some background on the most commonly reported causes of loss between June and September – lightning, hail, and wind – and what evaluations reveal.
Policyholders – and you – want quick resolutions to summer HVAC claims. An expert assessment could prevent inaccurate settlement without prolonging the life of a claim.
Lightning
Lightning is a commonly reported cause of loss throughout the year. In the summer months, it’s the stated cause of loss for about one-fifth of HVAC system claims assessed by HVACi but is the actual cause for only about 1% of them.
According to the National Weather Service, lightning strikes about 25 million times each year in the United States. Though direct strikes to property are rare, equipment can sustain collateral damage from nearby strikes. Evidence of a lightning-caused fire in the attic introduces the possibility of smoke and soot damage throughout the system.
Direct and collateral damage from a lightning strike may include soot and charring to condensing units and other system components.
If lightning strikes a house, low voltage issues like control boards failure or malfunctioning thermostats are also potential indicators of collateral damage. Other visible lightning evidence includes arcing, ghosting, damage to structural components like the chimney or siding, evidence of direct strikes to nearby trees, and wiring insulation that has melted from the inside out.
For each loss, an expert assessment is necessary for more than just confirming the cause. Repair vs. replacement recommendations from a team familiar with the equipment support an accurate settlement decision. Coupled with verified market value pricing, these recommendations can also help you avoid indemnity leakage.
Average Summer Lightning Claim Accuracy for Residential Claims: $7,024
Reference this guide and Find the Cause of Loss in a Flash when you’re faced with a claim in which lightning is the reported cause of loss.
Hail
Hail is most common between April and August, with most summer HVAC claims reporting hail as a cause of loss coming in during June and July, then tapering off. Residential equipment assessments confirmed hail was responsible for about 5% of summer losses. More importantly, almost 80% of hail-impacted equipment can be repaired without a replacement.
Other causes of loss may be mistaken for hail damage, but experts familiar with the equipment in question can tell the difference. Many perils can dent or flatten the coil and/or aluminum fins within the condensing unit. However, if this damage is randomly spaced out and there are dents in the coils, fins, or casing, hail is a likely cause of loss. Sometimes the outline of the impacting hail is visible in the damage.
Dents in the fins that are random rather than linear are evidence of likely hail damage.
Average Summer Hail Claim Accuracy for Residential Claims: $4,735
You’re most likely to see summer wind claims later in the season. Last year, HVACi determined 13% of HVAC losses that occurred in August and September were caused by wind.
Wind can cause direct damage to condensing units by shifting them out of position or blowing them over. However, high winds may also lead the environment around the equipment to cause damage, such as blowing airborne particles, light debris, and even branches and uprooted trees into the HVAC equipment. Wind-damaged fins may be able to be combed out and condenser coils cleaned, but any damage should be assessed by an expert familiar with the equipment to ensure an objective, accurate claim resolution.
While some damages may be as small as particles clogging the fins, HVAC equipment can sustain impact damages as the result of high winds.
Average Summer Wind Claim Accuracy for Residential Claims: $5,639
To see how HVACi experts offered one adjuster the best next steps for two residential split systems in lieu of an unnecessary settlement for two residential split systems, read our Wind Claim Case Study.
Don’t forgo an expert assessment of HVAC and refrigeration equipment because the cause of loss seems obvious. The HVACi team confirms the actual cause quickly and accurately, with an average cycle time of 5 days for residential assignments. We also provide repair vs. replacement recommendations supported by evidence and verified market value pricing. Submit an assignment today.
Download the Wind Damage to HVAC Condensing Units Guide
Many kinds of commercial properties may have kitchens, from small delis with single grills to full-service restaurants and beyond. Proper ventilation and grease management are essential in operating them safely. Kitchen HVAC equipment is responsible for managing grease vapors, odors, contaminants, moisture in the air, and combustible gases. Adjusters should know about this equipment because when it operates correctly, the system controls the kitchen’s temperature, humidity, and airflow, and prevents smoke and fire incidents and associated claims.
Each commercial kitchen requires ventilation appropriate to the volume and type of food preparation that occurs there.
Commercial Kitchen HVAC Equipment
Exhaust hoods are one of the most important pieces of HVAC equipment within a commercial kitchen. Hoods remove smoke, grease-laden vapors, fumes, and odors. Type I, also called grease hoods, are installed above equipment that generates grease or smoke, like grills or fryers. They contain devices that pull in grease from the air and remove it from the kitchen. Type II hoods, or condensate hoods, are installed above appliances like ranges or ovens. Adjusters should expect to see them in places that generate steam, heat, or combustion byproducts where grease and smoke are not present.
Commercial hoods include important components like upblast exhaust fans, which pull the air and any airborne cooking byproducts from the kitchen into the hood and through filters. Air is blown out of the top, and a sealed compartment, such as ductwork, protects the motor from the heat, moisture, and contaminants being removed. Additionally, a secondary grease trap captures condensed grease to prevent it from getting onto the roof. If ductwork penetrates a fire-rated wall or ceiling, the air duct must have a continuous enclosure or be protected with a listed duct-through-penetration system, or the fire rating will be compromised. Downblast exhaust fans eject air down toward the fan base and roof, which could be a fire hazard if grease accumulates there. They should never be used in a commercial kitchen. Regardless of type, 41% of commercial exhaust fans HVACi assessed in 2022 were impacted by hail; nearly 16% of them were impacted by wind; and 19% of commercial exhaust fans were non-damaged at the time of assessment.
Make-up air must also be brought in to replace the air taken away by the kitchen exhaust at approximately the same rate as the air removal. This balances the air pressure in the kitchen and throughout the rest of the commercial facility and contributes to overall Indoor Air Quality (IAQ). Depending on the size of the kitchen, this may require a separate make-up air unit. In 2022, 33% of commercial make-up air fans and commercial make-up air units were non-damaged at the time of the assessment, 20% of them had been impacted by wind, 13% had been damaged by fire, and 13% were damaged by foreign object impact.
These components work together to make the environment comfortable for the kitchen staff, but good ventilation also reduces the risk of smoke and fire damage.
Commercial kitchen hoods exhaust contaminated air and grease.
Smoke and Fire Damage
As described above, commercial kitchen exhaust can help prevent losses by removing grease vapors from the air, but grease accumulation is one of the most common causes of smoke and fire damage in commercial kitchens. If filters and grease traps are not cleaned regularly or otherwise properly maintained, grease can accumulate, overheat, and combust. The National Fire Protection Association advises that hoods should be inspected for buildup monthly, quarterly, annually, or semi-annually, depending on the volume and type of food production. Backed-up grease traps may generate flammable or toxic gases, like methane or carbon monoxide, which can also cause a fire in a hot kitchen.
Commercial kitchen smoke and fire incidents may result in extensive property damages to costly equipment. When losses occur, an expert familiar with the equipment should inspect the site to verify the cause of loss, the extent of the loss, and what Like Kind and Quality equipment would restore the kitchen to pre-loss condition. However, it’s also possible some claimed equipment may be non-damaged, requiring no action from the adjuster or policyholder to return the equipment to pre-loss condition.
Commercial kitchen fires don’t just affect cooking equipment. This furnace was damaged by smoke and heat when a fire occurred in a restaurant kitchen.
HVAC Investigators (HVACi) provides the leading HVAC and refrigeration system assessments and desktop pricing reviews for residential and commercial claims nationwide. HVACi’s team of qualified subject matter experts can provide the information that adjusters need to settle a claim for commercial kitchen HVAC equipment quickly and accurately. Submit an assignment to see how HVACi’s fact-driven approach, extensive in-field network, and quick cycle times can help you settle commercial kitchen claims.
Download the Complex Residential and Commercial HVAC Systems Guide
Wind and Water: A Double Threat in Hurricane Damages webinar has already occurred. You can watch the recording here.
After hurricane events, adjusters often have to distinguish between wind damage and surge damage to make accurate claim decisions. Join Alpine Intel’s Technical Education Trainer, Kevin Huelsman, in the Wind and Water: A Double Threat in Hurricane Damages Webinar as hurricane season approaches, and gain a better understanding of how forces related to these perils affect structures.
This webinar will cover:
• The difference between wind and storm surge damage after hurricanes
• Forces associated with wind during a hurricane event
• How different forces associated with storm surge affect a structure
• What experts look for in a collateral investigation
Pre-recorded webinars do not qualify for CE credit.
Important: Pre-recorded webinars do not qualify for CE credit.
Understanding commonly claimed residential HVAC system types and components and why it’s so important to obtain an accurate cause of loss every time can help prevent claims leakage. Jay Dykstra, Alpine Intel Technical Education Manager, presents this and more in the webinar HVAC Systems 101 for Adjusters.
From this webinar, you’ll learn:
Why residential HVAC claims matter to carriers
Basic design and operation of HVAC systems
Differences in common residential systems components
How federal regulations may impact the settlement of an HVAC claim
Watch our HVAC Systems 101 for Adjusters Webinar recording by filling out the form provided.
