Lessons Learned from Superstorm Sandy


Sandy was the second costliest hurricane in United States history. The scope of damage to trees in the Northeast was second only to the estimated 350 million trees destroyed by Hurricane Katrina. Not only did trees cause damage to covered property, but in some instances the trees themselves represented an insurable asset - a trend that has been growing over the last decade, particularly on commercial properties such as golf courses and resort properties.

The ability to accurately value tree loss (whether it is a first-party or third-party claim) has been a tremendous challenge for the insurance industry, primarily due to the fact that the arboricultural industry has failed to provide standardized methodologies for valuing trees. The number of tree-related claims due to Sandy was significant and policy holders "armed" themselves with public adjusters and consulting arborists to protect their interests, thus emphasizing the need to address these claims fairly and accurately and avoid bad faith exposure.

 

HMI's mission statement is to provide adjusters with the tools that will allow them to achieve these goals. Please feel free to contact me with any questions at (866) 937-6468 ext. 25.

 

Regards,

Doug Malawsky

Chief Operating Officer, HMI

 

Avoiding Bad Faith in Tree Related Claims: Trees Have Value


Photo provided by EDI (www.treemover.com)

A growing number of residential and commercial insurers are increasing coverage for landscape losses. Traditionally, an average homeowner's policy would cover between $250 and $500 per tree or shrub lost, and the covered perils were usually limited to lightning and fire. But with the investment in landscaping surging to almost $75 billion dollars a year, insurers are taking steps to protect this valuable asset class. The result is enhanced coverage for landscaping and trees with sub-limits of up to $100,000 and limits going as high as 10% of the insured value of the property, and specialty landscape endorsements being underwritten for virtually unlimited amounts. 


As this newly insured class of living assets proliferates, adjusters are being required to gain a greater understanding of adjusting for landscape losses, and potential exposure for insurers is increasing. 

Did you know?

 

Salt Spray Damages Trees

High winds can aerosolize salt from bodies of water and the wind-blown salt particles can damage trees. Damage commonly occurs up to five miles from the ocean; however, studies suggest that trees up to 45 miles away from the coast line have been damaged. Eastern white pines are the most susceptible due to salt concentrations building up on needles and buds, as well as abrasive damage and subsequent desiccation (drying out). There is little that can be done to treat salt-damaged trees; quite often they will recover, but death can occur.

 

2013 Hurricane Prediction

Colorado State University, a pioneer in hurricane forecasting, predicts an active hurricane season, with 18 named storms, 9 hurricanes and 4 major hurricanes. By comparison, the 1981-2010 30-year averages are 12.1 named storms, 6.4 hurricanes, and 2.7 major hurricanes. The prediction includes a 72 percent chance that a hurricane will strike the coast and a 61 percent chance of a major hurricane coming ashore. 

 

Earn Continuing Education Credits! 

 

HMI offers adjusters CE training on the topic of "Adjusting for Tree Damage and Landscape Loss." The course is approved for CE credits in FL, LA, NH, NC and TX. HMI will administer the course, file credits with the respective Department of Insurance and issue certificates of completion to each attendee. Courses are taught via webinar and can be scheduled at your convenience. Contact us at [email protected], if you would like to arrange a course for your staff.     


ABOUT HMI 

Through its Authorized Member Network of insured, qualified and credentialed tree care experts, HMI is the only national provider of comprehensive tree and landscaping services for the insurance industry. Our services include evaluation of damage on golf courses, hospitality properties and resorts, HOAs, municipal properties, nurseries, orchards, etc.; standardized health inspections; average replacement cost analysis of trees, and emergency tree removals. HMI currently receives insurance referrals from more than 40 insurance companies and independent adjusting firms. For more information, please visit HMI's web site: www.HMIadvantage.com or call (866) 937-6468.