Insurers ache for qualified
inspectors after U.S. hurricanes
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[September 12, 2017]
By Suzanne Barlyn and Catherine Ngai
(Reuters) - Insurers are scrambling to find
inspectors in Texas and Florida after fierce hurricanes battered the
states one after the other, causing tens of billions of dollars' worth
of property damage in less than two weeks.
Although insurers maintain some number of inspectors, known as claims
adjusters, across the U.S. year-round, they must redeploy staff from
other areas or hire contract workers to fill gaps when catastrophes like
Hurricanes Harvey and Irma strike. The speed with which they can do so
is critical to residents and business owners awaiting insurance
payments.
"The one-two punch of Harvey and Irma is no question challenging to the
industry," said Kenneth Tolson, who heads the U.S. property and casualty
division of Crawford & Co, which provides claims adjusters and staff
after disasters.
Adjusters investigate claims on behalf of property insurers like
Travelers Cos Inc, Hartford Financial Services Group Inc, Allstate Corp,
State Farm and Farmers Insurance. Many other policies are backed by
federal or state flood insurance programs.
Texas and Florida together have more than 340,000 licensed adjusters,
according to state agencies, but it was unclear precisely how many were
on the ground. Insurers and industry groups said thousands were headed
to affected areas from other parts of the United States.

On Sunday afternoon, Hartford was prepared to send adjusters into
Irma-battered areas "as authorities allow access," spokeswoman Kelly
Carter said. Hartford inspectors from Georgia, South Carolina, Alabama,
Tennessee and Kentucky were poised to assist, she said.
Zurich Insurance Group AG had Florida-based claims adjusters riding out
the storm locally on Sunday, with plans to begin visiting commercial
properties as soon as possible, spokesman David Hilgen said.
Once Irma passes, a group of risk engineers at Zurich's Tampa hub plan
to fan out across South Florida to assess damage alongside forensic
accountants, building consultants and mitigation contractors, he said.
Some are using drones to help.
Brent Hazen, a Farmers adjuster and drone pilot, spoke to Reuters while
inspecting a roof in Missouri City, Texas. The drone buzzed above the
house for 11 minutes, a process that would have taken an hour otherwise,
Hazen said.
"It is ... safer because it means I don't have to get up on the roof,"
he said.
FACT OF LIFE
Insurers have been put to the test before. After Hurricanes Katrina and
Sandy in 2005 and 2012, it took months for many property owners to
receive payouts, partly because there were too few adjusters with the
needed expertise.
Novice errors like not pulling off drywall to inspect for hidden damage,
or not being familiar with software used for loss estimates, can reduce
or delay insurance payments, adding to hardships residents are already
facing.

"It's a fact of life after every disaster that there's a shortage of
experienced adjusters," said Amy Bach, executive director of United
Policyholders, a consumer advocacy group.
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A sign directing insurance company State Farm claims teams in
preparation for Hurricane Irma at their Birmingham Operations Center
in Birmingham, Alabama, in this handout photo obtained by Reuters
September 9, 2017. State Farm/Handout via REUTERS

The inspector shortage may be worse this time because insurers have not faced
hurricanes of this magnitude – certainly not two in a row – in half a century,
industry experts said.
Catastrophe modeling firm AIR Worldwide expects $10 billion in insured losses
related to Harvey, and perhaps another $50 billion for Irma. Early estimates are
likely to change, and do not include claims covered by the government.
Many large insurers use their own adjusters, while smaller and midsize rivals
are more likely to hire outside help. For-hire inspectors can charge
$1,000-$2,000 per claim in the aftermath of major disasters, industry sources
said.
Work on the ground can be punishing.
After Hurricane Harvey, Steve Sherin, executive general adjuster for Zurich's
North American unit, spent five days in Houston. He left his hotel at 4:30 a.m.
each day to begin long days surveying damage at commercial properties.
Last Thursday, he spent six hours walking through ankle-deep water and mud in
one building, surrounded by the stench of dead fish decomposing on a parking
garage floor and the loud noise of cleaning equipment. His workday lasted about
17 hours.
"It's tiring beyond belief," Sherin said, "but there's a lot of purpose in what
we do."
LONG PROCESS
For property owners, an inspection is often the first step in a longer,
paperwork-heavy process.
Few adjusters can immediately authorize payments, especially if policyholders
are insured though state agencies or the National Flood Insurance Program.
Richard Campell, whose Houston home was flooded, said his inspector was armed
with an iPad and estimating software. The adjuster measured rooms, asked about
water levels and photographed mounds of ruined belongings in the yard, he said.

Campell, 67, must now submit an inventory with price replacement costs,
including details like his refrigerator's model and serial number. Still, he is
grateful that the inspector reached his home in only five days.
"It was the luck of the draw," he said.
Sean Maxwell, 27, also of Houston, had to leave her mother's flooded home in a
boat. An adjuster visited last week, and the family is now waiting for documents
explaining the payout.
"The funny thing is, when it comes in the mail, I don't know how we're going to
get it because we don't live there," Maxwell said.
(Reporting by Suzanne Barlyn and Catherine Ngai in New York; Additional
reporting by Nick Carey in Missouri City, Texas; Editing by Lauren Tara LaCapra
and Jonathan Oatis)
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