Lehigh Valley property insurers are working long hours, prepping plans in response to a growing volume of calls from customers recovering from Superstorm Sandy.
Lehigh Valley property insurers are working long hours in response to a growing volume of calls from customers recovering from Superstorm Sandy.
Many said they've already deployed claim adjusters to situations such as trees falling into houses, debris on top of vehicles, roofs torn off and siding and signs destroyed. There also are cases of trees that have fallen onto the property of other homeowners.
An example of one of the more expensive individual claims in the Lehigh Valley is being handled by Easton-based Reagle Insurance, an independent agency representing Erie Insurance, with a branch office in Allentown.
The agency is handling $50,000 worth of destruction after multiple trees fell onto a local business that sells and services boats.
Jim Reagle, the company's treasurer, said that claim included multiple punctures in the roof, interior damage to the ceiling and interior water damage.
"Right now there are three or four trees on the roof (of the boat business). It's completely open to the elements," Reagle said. "What we are seeing here is a storm that might be the worse we have ever dealt with overall. This is a storm that is so widespread, it has affected everybody."
Reagle said his agency has directly submitted more than 100 claims to Erie Insurance for an estimated $475,000 in damages and he thinks more are to come. Claims, according to Reagle, are broken into three categories depending on priority: severe, moderate and minor.
Severe is classified as damage to a building that is open to the elements and/or possibly unsafe to be occupied, such as a tree through the middle of a roof.
Moderate is damage to a building that is not open to the elements and safe to be occupied. Minor ranges from trees on the ground to missing shingles or siding or trees on a fence.
Most claims, regardless of classification, take 24 to 72 hours at the latest to be processed at Reagle.
"We try to get back to everyone the same day," Reagle said. "We're not wasting any time."
Several other local insurers didn't have totals yet on losses or claim estimates. However, Eqecat Inc., an insurance risk modeling firm, is reporting nationwide losses likely will amount to $10 billion to $20 billion, and the total damage including uninsured property could be $30 billion to $50 billion, according to its website.
Property owner relief
Some good news for property owners living in both Pennsylvania and New Jersey is insurers will not be able to charge what is known as a "hurricane deductible" before paying insured claims.
Some homeowner's insurance policies for properties have special "hurricane," "tropical storm" or "named storm" deductibles based on a percentage of a property's insured value. These deductibles typically range from 1 percent of a home's insured value to 5 percent, according to the Pennsylvania governor's office.Since Sandy did not meet hurricane criteria and had been categorized as a post-tropical storm by the National Weather Service, it cannot be classified for the deductible, said New Jersey Department of Banking and Insurance spokesman Marshall McKnight.
Rosanne Placey, spokeswoman for the Pennsylvania Insurance Department, a state regulatory agency, said homeowners should check the department's website to make sure an adjuster is licensed before hiring one.
In New Jersey, McKnight said homeowners can check the New Jersey Department of Banking and Insuranceâs website for licensees.
Pennsylvania consumers also can check licensing information about contractors they may hire for repairs with the Attorney Generalâs Bureau of Consumer Protection, Placey said.
She noted some out-of-state contractors, often called "storm chasers," that aren't legit could be knocking on doors.
McKnight said New Jersey homeowners can check up on contractors through the Department of Consumer Affairs.
Ringing off the hook
Erie Insurance, the 15th largest homeowners insurer nationally, has been flooded with calls since Tuesday morning, and agents expect more callers into next week, said Karen Kraus Phillips, a spokeswoman for the company.
"We have an effective catastrophe response process," Phillips said. "Erie employees have been actively working with customers to resolve claims and help them recover quickly."
Prior to the storm, Erie staff and resources were moved to staging areas throughout the agency's territories that could be affected by the storm. Those resources moved into affected markets to support the company's local teams Tuesday morning, she said.
At Kressler, Wolff & Miller, an independent insurance agency with offices in Easton, Allentown and Stroudsburg, staff last week fielded more than 100 additional claim calls. The independent agency represents such major property and casualty companies as Chubb, Progressive and Travelers.
J. Marshall Wolff, president of the agency, said Sandy was one of the worst scenarios affecting large numbers of customers they have ever dealt with since inception in 1923. The only other scenarios in comparison were the ice/snow damage and ice damage in the winter storms of 1994 and 1996, he said.
"It's not the end of the world compared to the folks who suffered absolute devastation when the Delaware River overflowed," Wolff said. "But, it's had an affect on all our customers."
Wolff said travel challenges have played a role in getting a claim processed and getting staff to the scene, saying traffic signals out with four-way stops have led to delays. Power outages also have made contacting customers difficult, he said.
"This was a monster storm, the largest to hit the northeast," Wolff said. "With some people, this is the biggest mess they have ever had to deal with."
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HOW TO FILE CLAIM
Some additional tips to help when filing a claim:
* Before calling your insurance company, try to locate your policy number and other relevant information. Your company representative will prepare a "Notice of Loss" form and an adjuster will be assigned to assist you. Ask for a timeline on when your agent can help you.
* Take photographs/video before clean-up or repairs. If you have already taken your damaged items out of the house, take pictures of the debris. After youâve documented the damage, make the repairs necessary to prevent further damage, but do not make any permanent repairs until an adjuster or company representative is able to inspect the damage and your carrier approves the repairs.
* Save all receipts. Keep a diary of all discussions with your agent or carrier. Cooperate fully with the insurance company. Ask what documents, forms and data you will need to file the claim.
For more Sandy-related information, visit pa.gov or www.insurance.pa.gov. Consumers with insurance questions or complaints can call the Insurance Department's toll-free, consumer hotline at 877- 881-6388.
New Jersey residents can visit www.nj.gov or http://www.state.nj.us/dobi/
Source: Pennsylvania Gov. Tom Corbett's Office and Marshall McKnight, spokesman for New Jersey Department of Banking and Insurance