We are monitoring the Pfeiffer fire near Big sur. Our Facebook page for the latest: http://ow.ly/rP83u
Understanding Additional Living Expenses (ALE)
Residents forced from their homes by disasters should remember that they may well have insurance coverage under their homeowners’ insurance policies that will help pay for food and housing and other essentials of daily life. Such coverage is called “additional living expense” (ALE), according to the American Insurance Association. “Peril evacuees may either be in hotels, in evacuation shelters, or staying with friends or relatives, and may be uncertain as to whether their home is uninhabitable,” said Janet Bachman, AIA vice president.
“These policyholders should call their insurance company to inform them that they have been required to leave their residence and the area due to the disaster, and to get advice on how their ALE coverage can assist with additional living expenses if either they were required to evacuate or if their home is uninhabitable due to fire, smoke or water damage.”
Homeowners’ insurance policies specify the amount of ALE coverage available. Generally, ALE pays for the difference between what it cost the family before the loss for housing and food and what it costs post-loss. As an example, before the loss a homeowner may have had a mortgage payment and utility bills (phone, electricity, etc.), and average monthly costs for Post-loss, the homeowner/family is staying in a motel or rents an apartment and eats many meals in restaurants. The insurer will pay for the difference between the cost of all these items pre-loss (minus non-continuing expenses such as utilities) and the cost of these things post loss.
Opening a bank account is a great way to help document your additional living expenses.
Policyholders should keep all receipts for lodging and meals to make the claims process easier. Some insurers will provide ALE funds immediately upon being notified of a loss; others may reimburse policyholders at a later date. It is important for policyholders to contact their insurer or insurance agent for more information about this coverage.
For prompt payment of your additional living expenses, provide your carrier with documentation regarding your special disaster-related expenditures. When possible, the documentation should include the vendor, to write a check make sure you don’t lose the receipt. This process will give you a detailed monthly expenditure of all your expenses plus keeping track of the funds
received from the insurance carrier.
Envelopes/Logs
Use the Expense Log envelopes and Mileage Log forms from your Concordia Claims Manager to keep track and store your expenses and mileage. Re- member that your food expenses will be reduced by your normal monthly expenditure and you will only be paid for the amount above what is considered your normal expenditure. Once the envelope has been completed, fold the Expense Log envelope with receipts and Mileage Log – insert inside the Mailer envelope. Remember to write your last name on the client line and place stamps on the envelope then mail to the offices of Concordia Claims Managers. Remember that the stamps become an extra expense due to the disaster and to add them to your next expense report.
Payment$
Unfortunately many insurance carriers are slow to pay expenses. Expect delays in payments and call your claims Concierge when concerned of if you have any questions. Your expenses will be categorized and resubmitted to the insurance company promptly by your Concierge. If possible we will request on your behalf that any payments for lodging/temporary living conditions will be paid directly by the insurance company and not require you’re getting involved.
Tips on Expenses
Insurance companies are notorious for wanting documentation regarding your expenditures. It is not uncommon for them to state – “Go ahead and purchase your replacement and send the receipt to us and we will consider the payment.” Remember to only purchase items that the insurance company has already approved and not subject to consideration…these items may never get paid. Also before making blanket statements with regards to how much you spend weekly on food, please consult your Concordia Claims Manager.
New Bank Account
The best idea is to go to your bank of choice and open a new account specific for this disaster. Request a debit card. Now make any and all purchases with the debit card only. Now you have dates and amounts. Remember that different insurance policies may have different requirements. Consider all the following receipts:
Expense Checklist
•Hotel/lodging/rental costs
•Generators
•Food
•Gasoline
•Water
•School Supplies
•Laundry supplies and laundry services
•Parking Fees
•Toiletries
•Pet kennel services
Ways to Document Your ALE
•Receipts from vendors
•Bank Statements
•Credit card receipts
•Statement from vendors/relatives
•Credit card statements
•Cancelled Checks
•Bank debit receipts
•Duplicate copies of checks
•ATM withdrawal receipts
•Duplicate receipt from vendors
It is important to provide a detailed statement for all expenses incurred. If you do not have a receipt for a particular expense, provide a written statement to your insurance carrier. Include as much detail as possible about the items purchased, vendor used, amount expended, etc. Keep copies of these records and all documents submitted to your insurance carrier.
Your Concordia Claims Manager will provide you with a computer/paper template and a series of envelopes to assist in the documentation of your expenses. Using the computer template complete the form and submit to your claims manager via email or use the paper form and mail it along with the receipts in the pre-addressed envelope.
Do you know about Asbestos?
Can you tell from looking at it, if this loss is “hot” with asbestos?
1. What is asbestos?
Asbestos is a group of naturally occurring mineral silicates. Asbestos minerals crystallize into narrow parallel bundles which are composed of many thin fibers. Some of the notable properties of asbestos are resistance to heat, resistance to chemical attack, high tensile strength and a tendency to be divided lengthwise into fine fibers.
2. When did the use of asbestos begin?
Use of asbestos on a large scale began in the early 1900s and continued until it was banned in the late 1970s.
3. How many types of asbestos are there?
Chrysotile, amosite, chrosidolite, anthophyllite, tremolite, and actinolite are all types of fibrous asbestos. The most commonly used asbestos is chrysotile jk, followed by amosite l and crocidolite
4. How does one test for asbestos?
The test approved by the Environmental Protection Agency (EPA) is a polarized light microscopy (PLM). The test can be done by any certified testing laboratory and is measured both in quantitative and qualitative measurement. All testing is kept confidential. Tests indicating greater than 1% require a certified abatement contractor to remove the asbestos prior to demolition or removal of any personal property.
5. Where does the exposure to asbestos come from?
Asbestos exposure results when asbestos containing materials, such as acoustical ceilings, floor tiles, etc, are disturbed in some way. Besides this, the areas near asbestos mines may contain higher concentrations of asbestos due to natural weathering and erosion in the sites of these mines.
6. How can asbestos enter the body?
The most common way that asbestos can enter the human body is through breathing in contaminated air. Most of the asbestos fibers that enter the respiratory system are removed with the exhaling breath or are trapped by the mucus lining the respiratory tract and are then removed by coughing. For your protection, always wear safety glasses, breathing masks and latex gloves when entering the concerned location.
7. Where was asbestos used?
Because of the physical properties of asbestos, it worked very well as part of insulation, roofing, flooring and ceiling materials, etc. Asbestos has properties which made it suitable for use as insulation and as part of binding materials in buildings. Asbestos has been used in such parts of the home as floor tiles, ceiling panels, acoustical ceilings, exterior stuccos, etc. All in all there have been over 3600 products manufactured that contain asbestos. It would be impossible to list all of these products here. The only sure way to find out if the material you are concerned with contains asbestos is to have the material tested. Refer to the following diagram and the table below for the most common products that may contain asbestos.
8. How does asbestos affect my health?
The asbestos fibers that can do damage are the ones that enter the respiratory tract and are not removed by the usual body defenses. These fibers are the ones that reach the deapest parts of the lungs. These fibers damage the lungs by leaving scars in the lung tissue. If many of these scars develop due to a large number of trapped asbestos fibers, the capacity of the lungs becomes decreased. It may become decreased to a point to cause disability and even death. People who are consistently exposed to asbestos over a long period of time, such as asbestos workers, are at a higher risk to develop lung cancer or mesothelial cancer. Lung cancer begins with the tissue of the respiratory system, while mesothelial cancer starts with the thin membranes surrounding the lungs as well as the heart. All these effects caused by asbestos do not manifest themselves immediately after exposure. It usually takes between 20 to 30 years to see the full impact of the exposure to asbestos.
Rolf Eidbo on what makes CCM different.
Concordia Claims Personal Contents Approach
A video we have produced to show the exhaustive approach we take to proving your personal contents loss.
CCM Continues Growth with New Public Adjuster Hire
(Mike Copland comes to CCM with over 15 years of industry experience)
Concordia Claims Managers continues to grow as the predominant Public Insurance Adjusting firm in the Central Valley with the addition of Mike Copland to its stable of seasoned adjusters. Mike brings 15 years of industry experience to Concordia, with extensive commercial insurance experience, having served as Commercial Claims Adjuster with Nationwide Insurance for 10 years, as well as 5 years of restoration industry experience here in Modesto, servicing both commercial and residential clients. Mike will immediately assume the role of Senior Claims Manager with CCM.
Mike brings with him a distinguished service record in the insurance industry, counting his extensive work in Gulfport, Mississippi after hurricane Katrina as an important time in his professional development. Mike is known for his fairness throughout the industry, and has chosen to work for Concordia to begin working to “advocate for the policyholder.”
Mike is a native of Oakdale, moving to Modesto in 1993, where he, his wife Emily, daughter Julia, and son Zach now reside. Mike enjoys spending time supporting his children’s youth sports and academic pursuits, and is a member of Big Valley Grace Church in Modesto.
CONCORDIA JOINS MODESTO CHAMBER!
Concordia Claims Managers is proud to be the City of Modesto Chamber of Commerce’s newest member. William dropped of our application to join the Chamber this morning to Doug Johnson. We are so excited!
How Public Adjusters Can Benefit the Policyholder
On 5/9/2010 a fire broke out the rural area of Placerville, CA. The home was located in a desolate area of the county and upon arrival firefighters quickly set up their engines and begin fighting the fire. Unfortunately each engine only carried 400 gallons of water and in full fighting modes they emit over 150 gallons per minute. With three engines on site and only few minutes into their fight they requested additional water tenders and turned their efforts from offensive to defensive. The home was a “total loss”. Just a few walls remained standing and all personal contents were lost.
When the day was over the elderly homeowners contacted their insurance company with proper notification of the fire. The insurance company (Farmers) confirmed that they would be assigning an adjuster to visit them the following day. The adjuster arrived on schedule and told he homeowners that all he could do was to initially document the loss with photos and notify the company to assign a “large loss adjuster” to the file. The adjuster on site notified the homeowner NOT to talk to any contractors of public adjusters who may come by. Farmers would take care of them and there was no need for these “ambulance chasers” firms to get involved. Two days later the newly assigned “large loss adjuster” showed up at the site along with a “preferred contractor” and begin preparing the loss for payment. The process only took a few hours and all parties were not to be seen again until later.
The owners made numerous calls to the adjuster requesting answers to their many questions and asking when they would receive a check for their recovery. Meanwhile the “preferred contractor” kept the pressure on the family to sign their contract for the repairs to the home. The homeowner did not sign with the “preferred contractor” because they would not divulge the amount of their repair estimate before the homeowner was required to sign the contract. Almost two months went by when a check and a huge stack of papers arrived in the mail. Farmers was in agreement to pay the property owners $262,351.41 for their dwelling (home) and $11,156.28 for their personal property (contents) and an additional amount for the “additional living expenses” of $22,053.36 This was a far cry from the policy limits listed on their policy of $314,000.00 for Dwelling, $219,800.00 for Personal Property, Other Structures $31,400.00 and ALE $94,200.00.
As in ALL settlements, Farmers as well as all carriers offered to review the file should the homeowner come up with additional items that may have been missed or omitted. It was at that time the homeowner decided they would need the help in preparing their own “proof of loss”. Homeowners have the right and responsibility to present their “proof of loss” to the carrier. When they do not invoke this right – the carrier presents their own in behalf of the owner. Many times the owners have no clue as to what they are supposed to do. It is somewhat like a funeral- unless you have gone through one before you don’t know the ropes. Afterwards you find out that you could have conducted the funeral at a much more reduced cost had you only known.
In this case the homeowner engaged the services of Concordia Claims Managers (CCM) – a public adjusting firm located in Modesto, CA. CCM begin their process by assigning a Sr. Claims Manager and two contents teams to the site and within five days they had sifted through debris of the entire home and property. They entered the identification and photographs of the items found in their computers and a comprehensive list began to be formed.
This final list totaled over 10,900 items and 1,321 photos were taken. Working with the homeowner the items were priced and aged. When it was completed the 103 page document and all the hyperlinked photos well exceeded the policy limits. Simultaneously CCM embarked upon the development of a “scope of repairs,” similar to the one the Farmers adjuster and their “preferred contractor” completed in their evaluations.
CCM found numerous items which were not listed, wrongly-priced and missing areas within the home. CCM completes all of their scopes themselves assuring the homeowner that everything will be accounted for. When the eighty (80) page document was finalized and approved by the homeowner they were notarized and submitted to Farmers for review. It is very difficult for any insurance company to argue properly documented scopes or contents lists when supporting documentation has also been provided.
This is the way CCM does every one of their claims – taking NO SHORTCUTS! With the “proof of loss” in place the homeowner received and additional payment for the structure in the amount of $163,350.38, contents $154,707.04 and ALE for $11,026.68. Contents had exceeded the policy limits on “Replacement Cost Value” (RCV) but after depreciation the “Actual Cash Value (ACV) was paid there was still $ 46,886.68 short of policy limits. After CCM’s audits and 200+ pages of challenges Farmers agreed to pay the remainder amount up to policy limits in an attempt to close the file. The homeowner by engaging the services of CCM gained an additional $364,944.10 (123% increase) towards their recovery efforts for their loss. Monies they were entitled to but not paid by Farmers until properly documented.
Farmers and their adjusters are not at fault here according to CCM’s Sr. Claims Manager as they are only human and can only do so much within the time allotted to settle a file. It is the homeowner’s responsibility to show their “proof of loss”. Farmers will pay what they owe “IF” the claim is properly documented. CCM only steps in and assists the homeowner complete their responsibilities making it easier and quicker for their recovery to happen.
Concordia Claims Managers- Who We Are
Concordia Claims Managers and their experts are well-seasoned in evaluating losses, having participated in many such events in the past. The evidence of structural and other damages are not obvious in many instances; particularly to those who have very little or no experience in the types of damages caused by catastrophic events. No matter how experienced loss assessors, estimators, contractors, accountants, or other company representatives are, they cannot correctly determine, with detail, the extent of damages from a catastrophic loss, especially without prior loss experience and specific training.
Keeping a pulse on costs and pricing for repair and/or replacement, which steadily rise, is another area for major concern. A quick and equitable resolution of claims is accomplished by utilizing state-of-the-art computer systems with computerized estimating capabilities, inventory programs, accounting software for inventories and business interruption, along with trained expertise and experience.
Several business entities have put their trust in our capabilities. Those clients retaining Concordia Claims Managers soon realized that the services we provided were invaluable to them in terms of the detail in preparation, accurate assessment of damages, time, and final resolution of their claim. Based in California, Concordia’s Claims Managers are available 24/7/365 and prepared to travel the globe.
Considering your insurer has engaged experts to represent their interests (read SCM’s whitepaper “Post Claims Management – Preparing for the Challenges“, shouldn’t you consider having professional assistance in what is likely the largest single loss situation you shall ever experience?
In summarizing, Concordia Claims Managers will:
- Work with your risk management team in any capacity you wish.
- Complete a precisely detailed estimate of what is required to repair or rebuild your structures.
- Assist in the preparation of inventories on your damaged personal or business property, contents, and related items. With your help in providing correct documentation, and determining ages and descriptions, a professional claims manager can evaluate and determine the approximate current values.
- Prepare your time element losses, such as business interruption, contingent business interruption and loss of rents.
- Establish a professional line of communications with the insurance adjuster.
- Present estimates, inventories, and other valuations to the insurance adjuster.
- Meet with the insurance company to negotiate and adjust your claim fairly and equitably, thus resulting in an acceptable settlement to you.
Concordia’s mission is:
if…
Vision is from the Mind,
Mission is of the Heart,
Values are from the Soul…
May Concordia Claims Managers live our values,
share our vision, and our mission –
“TO BE SO GOOD, THEY CAN”T IGNORE US!”
Combination of quotes from
John Maxwell & comedian Steve Martin
Working with a Public Adjuster (FAQ)
What is a claims manager?
A claims manager is a professional who has expert knowledge in the area of loss adjustments. He is retained by the general public to assist them in preparing, filing, and negotiating equitable adjustments of insurance claims. They have a trained eye that knows what to look for.
Are claims managers in any way affiliated with insurance companies?
No. Their services are engaged exclusively by the policyholder and not the insurance company.
What can a claims manager do for me?
We can advise and assist your recovery team in the preparation of building damage assessment reports, estimates, inventories, and other factual proofs of loss. We will handle all the necessary details for compiling and filing claims, as required by the terms of your insurance policies. We will also meet and confer with the insurance company representatives and handle all negotiations essential to proper, satisfactory, and equitable adjustment of your claim.
How can a claims manager better serve me over an insurance company adjuster?
The insurance company adjuster is employed exclusively by the insurance company. He/she has only the insurance companies motives at heart. A claims manager must work for your best interests exclusively.
Why should I hire a claims managers to get what’s rightfully due me?
Are you fully aware what is rightfully due you? Only after detailed due diligence can anyone know that answer. Concordia will leave no stone unturned to assure your entitlements are not lost. We are your representatives. With our experience and knowledge, we are far more capable of bringing about a favorable, satisfactory, and equitable adjustment.
Why can’t my insurance agent or broker handle my claim?
An agent or broker is well trained in determining your insurance needs and placing or writing insurance programs, but they are not well trained in detailing insurance losses. You can’t expect an agent or broker, who is not paid to adjust losses, to try and “adjust” one. They generally don’t have the time, training, or facilities to render the highly specialized service of insurance adjusting.
Can I prepare my own claim better than a claims manager?
In a word, NO. It stands to reason that professional claims managers, who are experienced in professionally handling and preparing claims every day, can do it more competently and efficiently than the average insured, who may only have one or two losses in a lifetime. Do you think you can cut hair better than a trained stylist with years of experience? Just like a bad haircut, a poorly handled insurance claim can get ugly, fast!
Why should I engage a claims manager?
To properly adjust an insurance claim, you need highly skilled professional insurance experts who have a vast knowledge of insurance policies, coinsurance, depreciation, inventories, building damage assessments, repair and replacement costs, negotiation skill and savvy to secure the maximum recovery from your insurance policy. Only an experienced, professional claims manager has these qualifications.
Why do I need help in filing an insurance claim?
The typical insurance policy contains many provisions, complex details, and technical language about your requirements and the complicated procedures you must adhere to in case of a loss. Many people do not know or understand these policy provisions and do not realize that the burden of proof is on them, the policyholders. In fact, most insurance company representatives actually prefer to work with a professional claims manager rather than an inexperienced policyholder.
A professional claims manager not only has your confidence, but the insurance company adjuster’s as well because they recognize that they are working with a professional. Professional claims managers are well-trained in what to look for in an insurance policy and fully understands the procedures necessary in preparing and filing a claim in accordance with policy requirements.
What is the extent of a claims managers’ responsibility?
We assist you with every phase of preparing and presenting your claim, as well as accomplishing an adjustment for you which is equitable and includes everything to which you are entitled to under your insurance policy.
How do claims managers determine the actual loss?
We take a physical inventory of your damage with your assistance, prepare the estimate of damages to your building, and obtain other pertinent documentation to determine your loss of rents, or additional living expenses. We make certain that all provisions in your insurance policy are properly addressed. This often involves numerous steps of which you may know little or nothing about, but can make a significant impact on the outcome of the amount for your final settlement.
Why shouldn’t I wait to get an offer from the insurance company before engaging a claims manager?
At the onset, the insurance company makes a dollar evaluation of your loss at the time they first inspect it. This is called a “reserve” and is an absolute requirement in most states. The adjuster bases the “reserve” solely upon his initial inspection, your knowledge of the loss, and additional information you may remember to tell him. He is hired and paid by the insurance company so his interest is how to best protect his employer. Unless some agreements are made initially regarding the scope of loss and what is to be done next (such as temporary repairs, temporary living quarters, cleaners, etc.), serious problems could arise that may jeopardize the final settlement figures. We will also help eliminate the possibility of “missing items” that may have been overlooked by you.
To avoid misunderstandings, long delays, and reduced settlement figures, it is wise to hire a professional claims manager to deal with these possible problems before they occur. A claims manager should be hired immediately to protect your interests much like you would immediately hire an attorney after being involved in other types of claims, such as automobile or personal injury accidents.
Why is a builder’s or contractor’s estimate insufficient to enable the insurance company to make an equitable settlement?
Building contractors do not have experience in interpreting insurance policies and how they apply to a loss. They are not knowledgeable in calculating depreciation, coinsurance, actual cash value provisions of the policy, and other elements of your loss. Further, a contractor is competitive with his bid, attempting to provide his lowest bid to get the job.
Hidden heat, smoke damage, and water damage could cause you problems even after you settle your loss. These items and many more are usually overlooked because many contractors are unfamiliar with the methods of preparing a detailed estimate in a format that the insurance company recognizes. In addition, a contractor can’t handle your contents inventories, or prepare your additional living expense loss.
We engage the services of skilled, knowledgeable, experienced engineers, builders, and/or loss experts to prepare highly detailed estimates of all aspects of your loss. The building estimate is in a form and content familiar to insurance company experts and is done in conjunction with examinations by both the company adjusters and our experts. Every item of reconstruction is accounted for and detailed. The estimate specifically details all aspects of damage repairs necessary to restore the building to its original condition or evaluate it as to its current value.
Will my loss be settled quicker with the services of a claims manager?
We know exactly what is necessary to provide to the insurance company in order to expedite the settlement of your claim. A great deal of time can be saved by having our professional claims manager handle your loss.
Inspections are done immediately, estimates are prepared, inventories completed, and time elements losses are implemented. Accumulation of evidence and substantiation begins without delay. With your cooperation, we will quickly have your claim filed and the settlement process under way. Concordia commits to the homeowner that we will have an initial estimate within five business days from engagement of our services. This expedites the claims process and places you back in your home sooner.
How does an claims manager get paid?
We charge a small percentage of what the insured received in settlement. We don’t receive any fee until the insurance company actually issues the check to you. It is to our benefit to get the maximum settlement possible for you in as little time as possible. We also guarantee that the benefits gained from engaging our services will more than compensate the cost of our fee, at the very least. Fees are “contingent” and similar to how attorneys and realtors charge their fees.
Can a Concordia Claims Manager help me with my tax loss?
In a situation where additional information is required, we will work cooperatively with your accountant on these matters. We will also provide all documentation in order to help your CPA or attorney complete any income tax losses you may suffer as a result of your claim. We have worked in cooperation with many of these professionals and have been of great value to them in producing the required information needed to provide you with a detailed loss picture. There are no charges for providing this information. However, our fees do not cover charges to you for accounting or legal services and experts.
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