Electronics Losses Adjusters See In Hurricane-Related Claims

One of the most prominent losses to electrical items is high voltage surge, which occurs for several reasons. For storm claims, high voltage surge is often linked with power restoration after a service interruption or power outage.

High voltage surges impact any electrically powered equipment, which could lead to a claim with multiple items. This claim that was filed after a hurricane involved an indoor ceiling fan, speaker, computer, washer, and refrigerator that all failed to operate as designed. Testing confirmed damages to power strips, control boards, and defrost control, among other electrical components in these items.

The refrigerator would return to pre-loss condition with a new defrost control, but the other items needed full replacements. It's critical that carriers settling for replacement property are basing costs off available Like Kind and Quality equipment priced at market value.

Some hurricane damage can lead to other equipment losses. For example, a policyholder stated that the roof lifted during a hurricane and allowed rainwater to enter the location and damage several items. However, it wasn’t water that damaged this freezer. The freezer cabinetry had visible dents and scratches because it was near the roof’s structural damage.

Adjusters should have someone verify the reported cause of loss. Not all perils are covered by an insurance policy, though this one likely would be.

Hurricane-force winds wreak havoc on a property. Electrical wires are no exception. The adjuster who assigned StrikeCheck this claim asked for a wiring inspection to see if damage was related to a hurricane.

Comprehensive testing showed visual damage to the exterior electrical wiring. The service mast for the service feeder wiring to the meter socket was bent and disturbed, which is consistent with a loss caused by high winds.

Adjusters who aren’t familiar with the equipment included in claims should rely on an equipment expert to assess the damage.

Flooding may occur during or after a hurricane, and a typical homeowner’s insurance policy doesn’t usually cover it. However, water damage can occur for other reasons.

A hurricane impacted a home under construction, which caused a lot of damage to interior electrical components. Among the items affected by water were 15 electrical outlets, 4 light switches, and the electrical service panel. The electrical service panel had visible signs of water exposure, rust, and corrosion. All the electrical outlets also failed to operate as designed, and there was visible water exposure to the light switches that could prevent them from functioning properly.

Adjusters need equipment evaluations that consider scope of damage to determine whether a repair or replacement is necessary.

Hurricanes cause losses from their high winds and heavy rains. Related objects could sustain damage from multiple perils.

Take this fountain, for example. Water filled the control box for the fountain lights, damaging the electrical components and preventing the lights from functioning as designed. However, the fountain had also sustained damage from high voltage surge and wouldn’t power on even when connected to a verified power source. Damaged wiring prevented necessary voltage delivery.

Comprehensive evaluations are critical to ensure each component is considered when settling a claim.

Two other assessment findings for hurricane claims occur just as frequently as the others – wear and tear and non-damaged equipment. Policyholders may file a claim citing a hurricane-related peril when the malfunction is a sign of wear and tear. Insureds may also include multiple items not knowing if everything is damaged.

One claim that an adjuster assigned to StrikeCheck included 11 items reportedly not functioning as designed. Expert testing showed that 7 out of the 11 items didn’t have any visual or measured damages and would power on and operate normally. It put the carrier at risk for nearly $5,000 in unnecessary claims leakage.

StrikeCheck delivers comprehensive assessments and actionable reports in a short cycle time to help carriers settle claims quickly and accurately. This case study involving a hurricane-related claim for a malfunctioning pool heater illustrates how StrikeCheck thoroughly analyzes equipment to determine cause of loss and recommend appropriate methods of bringing equipment back to pre-loss condition.

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