Receive comprehensive assessment results for claims

with HVAC and Refrigeration equipment.

Receive comprehensive assessment results for claims with HVAC and Refrigeration equipment.

Spring Storm

Claims Trends

Other Causes

of Loss

Repair and Replacement

Solutions

Reported vs. Actual

Cause of Loss

Get the Spring Storms

Webinar Recording

Impacts to HVAC Systems Frequently Appearing in Wind and Hail Claims

Spring storms lead to numerous claims that carriers need to resolve.

Consider this data before settling a claim without an expert assessment.

Spring Storm

Claims Trends

Other Causes

of Loss

Repair and Replacement

Solutions

Reported vs. Actual

Cause of Loss

Storms Webinar

Spring Storm Claims Trends

Spring storms lead to numerous claims that carriers need to resolve. Consider this data before settling a claim without an expert assessment.

QUESTION 1/3

Nearly 80% of equipment impacted by hail could be repaired.

True

False

CORRECT

True!

Only 20% of HVAC and Refrigeration equipment with hail as the cause of loss required replacement.

Back

INCORRECT

Sorry, the correct answer is TRUE.

Less than 20% of HVAC and Refrigeration equipment that HVACi determined to have hail as the cause of loss needed to be replaced.

Back

QUESTION 2/3

Equipment with confirmed wind damage most likely needed replacement.

True

False

INCORRECT

Sorry, the correct answer is FALSE.

58% of wind-damaged equipment that HVACi assessed could be repaired.

Back

CORRECT

False!

58% of wind-damaged equipment that HVACi assessed could be repaired.

Back

QUESTION 3/3

Hail is the most frequently claimed peril for equipment that HVACi assessed.

True

False

CORRECT

True!

Policyholders claimed that hail impacted their HVAC and Refrigeration equipment one-third of the time. However the cause of loss was recategorized, in some cases, following a thorough evaluation.

Back

Retake quiz

INCORRECT

Sorry, the correct answer is TRUE.

Policyholders claimed that hail damaged their HVAC and Refrigeration equipment one-third of the time. However the cause of loss was recategorized, in some cases, following a thorough evaluation.

Back

Retake quiz

Don’t settle for unnecessary replacements.

Storms from hail and wind can cause devastating losses for residential and commercial policyholders. Before carriers settle for replacements, it's critical adjusters confirm the cause of loss and scope of damage. By not doing so, they risk settling for equipment damaged by a typically non-covered peril or for components that are functioning as designed.

DID YOU KNOW?

After HVACi experts confirmed wind or hail was the cause of loss, 75% of equipment was recommended to be repaired. This makes it critical for adjusters to verify the most appropriate steps to return equipment to pre-loss condition.

80%

of equipment impacted by hail could be repaired

58%

of wind-damaged equipment could be repaired

34%

of claimed equipment had a reported cause of loss of hail

OTHER CAUSES OF LOSS

Losses could look like hail but are actually something else – and they may not be covered by insurance.

FOREIGN OBJECT IMPACT

When condenser coils have marks in a linear pattern at the bottom, it is more likely to be a foreign object impact. In this case, landscaping equipment hitting the side of the HVAC system caused the damage. Wind can also push other objects into the equipment. This could result in minor to major damage to a condensing unit.

IMPROPER MAINTENANCE

Policyholders frequently file claims for their HVAC system after a storm hits. However, many times damage occurs over time from improper maintenance. Condenser coils need to stay clean and free from dirt and other debris. Not doing so could inhibit how well the system functions – and may cause it to work harder than it needs to.

WEAR AND TEAR

WEAR AND
TEAR

Condenser coils, and other HVAC components, get damaged with age and being outside in the elements. Signs of wear and tear may include a unit that is heavy with corrosion; condenser coils that are brittle and deteriorated; or condenser coils, evaporator coils, and air filters that are dirty.

REPAIR AND REPLACEMENT SOLUTIONS

Consider all repair options, from minor to major, before settling an HVAC claim with replacement equipment.

CLEANING

Spring storms may bring gusty winds that blow leaves, dust, dirt, and other debris into an HVAC system’s condenser coils. The coils have copper tubing that carries the refrigerant. Malleable aluminum fins typically surround the copper tubes.

Having dirt and debris in these fins could diminish their effectiveness, depending on the severity. Cleaning dirty coils can frequently return them to proper working order; however, insureds and their contractors should be mindful of what they use to clean components to not risk unnecessary damage.

COMBING

Dented or deformed tube and fin coil could block airflow, which may impact the system’s effectiveness, depending on the extent of the impact. Thin, plastic, or metal combs can straighten traditional tube and fin coils and return them to the proper position.

Contractors may not initially give combing as an option because of the time it takes to do, but it is a simple, inexpensive repair that can return equipment to pre-loss condition. Not all fins are able to be combed, and an objective evaluation would determine that.

NEW FAN AND/OR

FAN MOTOR

Hail or wind-thrown objects could dent or break the fan motor or blades of the condensing unit, which could cause a system imbalance or other malfunctions.

Policyholders can return equipment to pre-loss condition by replacing the fan or fan motor – before the impacts get worse.

NEW CONDENSER

COIL

Traditional fins that are torn, flattened too far, or corroded can’t be combed. Other types of condenser coils, including micro-channel or spine fin coils, also can’t be combed and must be replaced.

Before settling for a new condensing unit, check to see if the condensing coil is available as HVAC distributors and manufacturers typically keep these in stock or can make them on demand. It’s a much cheaper – and just as viable – solution.

NEW CONDENSING

UNIT

Impacts may be severe enough, or other circumstances exist, to make the best solution replacing the condensing unit. Adjusters should make sure the replacement has a compatible Seasonal Energy Efficiency Ratio to the indoor HVAC equipment or risk a follow-up claim that may require a full HVAC replacement.

Additional components, including a new evaporating coil, may be necessary to make the equipment compatible.

FULL REPLACEMENT

Typically, less than 20% of HVAC systems impacted by hail need complete replacement. The most common reason a full-system replacement would be necessary is if the indoor unit has a built-in integrated coil that can’t be changed out independently.

Adjusters who do have to settle for replacement equipment should ensure that the new system is of Like Kind and Quality to what the policyholder had and that the costs are in line with market values.

REPORTED VS. ACTUAL CAUSE OF LOSS

Policyholders claimed hail impacted their HVAC and Refrigeration equipment more than any other peril, accounting for a third of claimed equipment. Insureds also claimed wind damaged their property nearly 10% of the time. However, thorough evaluations determined these perils weren’t always the actual cause of loss. Some equipment was impacted by typically non-covered perils such as wear and tear – if they were damaged at all.

Actual Cause of Loss For HVAC Equipment With Wind or Hail as the Reported Cause of Loss

Foreign Object Impact

60%

Hail

High Voltage Surge

20%

Non-Damaged

Wear and Tear

15%

Wind

How HVACi can help settle claims more accurately.

Adjusters handling claims related to spring storms need expert support to ensure they settle claims quickly and accurately. HVACi provides a better all-in-one HVAC and Refrigeration system claims solution and desktop pricing review option for insurance carriers. The company’s proven processes leverage an extensive in-field network, expert knowledge, and engineering best practices.

$3,811

Average residential claim accuracy for all claims

Less than

5 business days

Average cycle times for residential and commercial claims

$31,155

Average commercial claim accuracy for all claims

Evaluating Spring Storm Damage to HVAC Equipment

Webinar Recording

Learn about the HVAC components most likely to sustain impacts from hail, wind, and storms during HVACi’s webinar, Evaluating Spring Storm Damage to HVAC Equipment. The adjuster-focused presentation includes brief overviews of susceptible HVAC equipment, shows examples of spring storm damage from real-life claims, and provides information about different potential repair options.

Fill out the form to receive your webinar recording. Previously recorded webinars do not qualify for CE credit.

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