1. 32 Claims Management // June 2015 TheCLM.org
claims Professionals seek resources to
Handle growing caseloads
By Joan Mccarthy Mack
FindingRoom
attheinn
L
ately, it seems that nearly
every week there are
news reports of another
major natural disaster.
For example, on May 10,
2015, snow, fooding, a tornado, and
a tropical storm produced major
damage in the central U.S. and along
the Carolina coast, causing injuries,
evacuations, and destroying many
homes and businesses.
Strong evidence indicates that
major weather events and natural
disasters of this type are dramatically
on the rise. Te Centre for Research
on the Epidemiology of Disasters
(CRED) in Belgium reports that
from 1983 to 1992, the world aver-
aged 147 climate, water, and weather
disasters each year. Over the past 10
years, though, CRED says that num-
ber now averages at 306 annually. But
it’s not just an increase in frequency;
severity also is rising. Te National
Oceanic and Atmospheric Admin-
istration (NOAA) reports that, in
the U.S. alone, there have been 136
weather and climate disasters since
1992 that reached or exceeded $1
billion each in damages.
Tis escalating number of
catastrophic events means that the
number of displaced homeowners is
growing, too, putting pressure on in-
surance companies and their claims
professionals. Growing caseloads and
a diverse mix of policyholders with
varying degrees of coverage motivate
claims professionals to fnd the best
strategies and resources to better
manage claims. Support ofen comes
from temporary housing providers
that can help insurance companies
and claims professionals handle total
catastrophic home losses, whether it’s
for hundreds of homeowners in a lo-
calized situation or tens of thousands
in a national disaster.
risks Versus coverage—and
the Potential for rising costs
To prepare for the future, insurance
carriers, claims professionals, and
policyholders would do well to look
at the past. Evidence shows that there
is greater potential for the volume of
claims and their associated costs to
rise for certain catastrophes, such as
foods and earthquakes.
Consider foods, for example,
which rank as the number one
disaster in the U.S., according to the
National Flood Insurance Program
(NFIP). Te NFIP reports that, from
2008 to 2012, the average food claim
totaled nearly $42,000, and from
2003 to 2012, total food insurance
claims averaged nearly $4 billion
per year. In 2012, the average food
insurance policy premium was about
$650 per year.
Incidents of fooding and claims

3. 34 Claims Management // June 2015 TheCLM.org
HallEvans.com | 303.628.3300
24/7
A T T O R N E Y S A T L A W
&HALL EVANSLLC
&
D E N V E R, CO | B I L L I N G S, M T | C H E Y E N N E , W Y
When serious accidents occur, count
on our emergency response team:
303.628.4250
WE KNOW
TRANSPORTATION
payouts are growing as more people
living outside of food plains fle claims.
According to the NFIP, people living
outside of high-risk food areas fle
nearly 25 percent of all NFIP food
insurance claims and receive one-third
of federal disaster assistance for food-
ing. In 2012, the NFIP paid more than
$7.7 billion in food insurance claims
to all policyholders.
In addition, the potential cost of
earthquakes likely could rise, as support-
ed by information shared by the Insur-
ance Information Institute (I.I.I.) in an
Aug. 18, 2014, press release. Te release
stated that in some areas of the country,
risks of earthquake damage are higher
because of development in seismically
active areas where many older buildings
do not adhere to current building codes.
Further evidence from U.S. Geological
Survey maps shows that 42 states are at
risk, with 16 of them at even higher risk.
Earthquake risk is particularly high in the
Pacifc, Pacifc Northwest, Intermountain
West, Central, and Eastern U.S regions.
In addition, the newest maps show the
eastern coast has the potential for larger
and more damaging earthquakes than
had been previously considered.
While the risks and costs are esca-
lating, however, insurance coverage is
lacking in some of the highest risk states.
Te I.I.I. said that in California, where
nine of the most costly earthquakes
in the last century occurred, only 12
percent of residents have coverage. Tis
is down from 30 percent in 1996, two
years afer the 1994 Northridge, Calif.,
earthquake—the costliest in U.S. history.
It caused an estimated $44 billion in total
property damage, including $15.3 billion
in insured losses.
ready at a Moment’s notice
As the volume of claims increases for
these multiplying catastrophic events,
claims professionals need to be pre-
pared and ready at all times with the
necessary skills to manage claims. Since
catastrophic losses ofen place a heavy
emotional toll on policyholders, well-
trained claims professionals equipped
with outstanding tools also bring peace
of mind and confdence to those whom
they serve.
Catastrophe training for claims
professionals can vary, depending on
their specialty areas and the particular
requirements of the insurers for which
they work.
“I focus on the specifc needs of each
client, so training becomes very special-
ized,” says Elise Farnham, a CLM fellow
who serves as president of Illumine Con-
sulting, a frm providing professional
development and training for catastro-
phe claims professionals. Working with
large catastrophe frms, she trains claims
professionals on evaluating a loss, inter-
preting coverage, and developing strong
interpersonal skills like time manage-
FindingRoom
attheinn

4. TheCLM.org June 2015 // Claims Management 35
WeLL-TRAiNed
CLAiMs
PRofessioNALs
equiPPedWiTH
ouTsTANdiNg
TooLsALsoBRiNg
PeACeofMiNdANd
CoNfideNCeToTHose
WHoMTHeyseRve.
GET STARTED NOW AT ITELINC.COM
FAST.ACCURATE.PROVEN.
THEITELMOBILELABAPP.
Apple®
and the Apple logo®
are trademarks of Apple Inc., registered in the U.S. and other countries.
App Store
SM
is a service mark of Apple Inc.
© 2012 Google Inc. All rights reserved. Google Play™
store is a trademark of Google Inc.
It’s why more carriers, adjusters, contractors,
and fooring stores are using the ITEL Mobile
Lab app.You get accurate, independent lab
analysis for your fooring, roofng, and siding
claims on your frst visit to the loss.
FASTANDACCURATELABREPORTS
INLESSTHAN30MINUTES.
ment and negotiation.
CAT training usually involves
learning how to use estimating systems,
such as Xactimate, to write detailed es-
timates, including sketches of structures
and costs that are calculated using local
pricing for building materials. Claims
professionals share these estimates with
policyholders, who appreciate under-
standing all of the costs involved in
their claims.
Most claims professionals with
whom we spoke agree that a strong
catastrophe claims process starts with
good communication. Tey ofered
the following communications tips for
easing policyholders’ minds:
K Review policy/coverage allowances
with them. Policyholders ofen don’t
understand or aren’t aware of exactly
what is covered.
K Ask the policyholder to point out all
damages. Tis can help them feel like
they are contributing to the process
and, thus, are more in control.
K Provide a copy of your project scope
and damage estimate as soon as
possible.
K When a report from an expert is
required regarding damage, also
provide a copy of that report to the
policyholder.
K Answer all questions as quickly as
possible. If you don’t know the an-
swer, give policyholders a time when
you’ll follow up with an answer.
K Connect them with state, federal,
and nonproft resources that can
help. Have a list ready of phone
numbers and addresses for groups
such as the Red Cross, the Federal
Emergency Management Agency
(FEMA), local churches, and food
pantries. Also, you can encourage
policyholders who need further
fnancial help to contact the Small
Business Administration (SBA)
for low-interest loans or FEMA for
grants.
In addition, there are handy tools
that claims professionals can use and
recommend to their policyholders to
FindingRoom
attheinn

5. 36 Claims Management // June 2015 TheCLM.org
help prepare for all phases of a disaster.
Te American Red Cross ofers several
helpful weather and aid apps for earth-
quakes, tornados, wildfres, hurricanes,
foods, frst aid, and fnding shelters. Te
shelter fnder app maps locations and
shelter details across the U.S., allowing
users to zoom in on their local area and
view shelter details, including address-
es and capacity. Te FEMA mobile
app provides alerts from the National
Weather Service, tips to survive natural
disasters, and disaster resources to help
fnd shelters and apply for assistance.
Claims professionals can use other
tools to track and prepare for catastro-
phes. For example, the California
Integrated Seismic Network ofers quake
maps and “ShakeMaps” to monitor
earthquake activity.
setting Housing expectations
Temporary housing companies can
help claims professionals plan before a
catastrophe by reviewing their catastro-
phe plans, identifying a communication
plan, and setting expectations to ensure
both the insurance company and housing
provider are aligned.
Experienced temporary housing
providers develop strong relation-
ships both locally and
nationally with hotel
chains and property
managers, supply chain
vendors, and furniture
and other service sup-
pliers, focusing on cities
and regions that have
a history of weather
events and disasters.
Since response time is
critically important to
insurance carriers and
their policyholders,
these relationships are
key to being prepared
when a catastrophe hits.
It’s a good idea to fnd
a housing provider that
has an established “duty
of care” program, which
combines strategically
aligned, proactive pro-
cesses and crisis response
tactics to manage against
a broad range of cata-
strophic events and natu-
ral disasters. In addition,
look for a provider with
a dedicated crisis team
that can be deployed on the ground
quickly to help claims professionals fnd
housing inventory.
Leading housing providers also can
ofer creative solutions, such as tapping
local colleges, retirement homes, and
even medical facilities to accommodate
both displaced homeowners and claims
professionals working in the area. Tey
can partner with an insurance carrier
to set up unique housing options, as
needed. For example, a housing provider
may be able to ofer policyholders rooms
in a local hotel minimally afected by a
natural disaster. Te property may be
in good condition but is without power,
so the housing provider may be able
to work with the insurance carrier and
FEMA to obtain generators that make
the property usable.
One claims professional from a large
national insurance company said she
works with temporary housing providers
that handle all the details and paper-
work for policyholders’ total loss claims.
Doing so streamlines her workload
FindingRoom
attheinn
TeMPoRARyHousiNgPRovideRs
CANeAseTHeBuRdeNfoRBoTH
CATAsTRoPHeCLAiMsPRofessioNALs
ANdTHeiRPoLiCyHoLdeRsByHeLPiNg
MANAgeCosTs,seTTiNgexPeCTATioNs,
ANdCoMMuNiCATiNgofTeN.

6. TheCLM.org June 2015 // Claims Management 37
When Disaster strikes ...
We’re All
Catastrophic events come in all sizes and most of the time when we least expect
them. From large-scale wild fres to localized fooding, CRDN has a team of
textile experts ready to respond to CAT situations immediately, 24/7.
We act as an extension of your claim response team throughout the entire event.
Textiles are only part of a restoration job, but we take that responsibility very
seriously.
• Fast response and immediate action
• More than 14 years of protecting each carrier’s brand
• CRDN’s exclusive Restore or Free Guarantee
The power of an international Network.
The personalized attention of a local Partner.
Find out how CRDN’s new mobile app 2.0 can
make your job easier.
Download it now
One call brings immediate response.
800-963-CRDN (2736) 24-Hour Claim Assignment Line
or visit crdn.com
and removes some of the stress. During
Hurricane Katrina in 2005, policyhold-
ers were dealing with some of the most
horrendous circumstances, including the
death of family members. “It’s our job to
reassure them and let them know we’ll
take care of them immediately, including
placing them in the hands of a reputable
temporary housing company,” says the
claims professional.
Housing providers also can help
claims professionals with policyholder
requests by ofering accommodations
located within close proximity to their
work locations, schools, and daycare. In
turn, claims professionals are pleased
when providers can fnd apartments
with kitchens so policyholders don’t
need to eat out as ofen, which can
quickly drive up costs.
“It’s very helpful to use a temporary
housing provider because they fnd
the housing you need quickly, fnd a
comparable housing option, and can get
better pricing on temporary accommo-
dations,” says Farnham, who also serves
as a board member for the Society
of Registered Professional Adjusters.
“Policyholders need to understand that,
if they fnd housing on their own, it can
ofen be too expensive and not covered
under their policies, which would only
add to their already stressful situations.”
Temporary housing providers can
help insurance carriers manage housing
costs for their claims staf, too. Expe-
rienced providers typically keep an
inventory of “turnkeys”—apartments
they have set up in various markets with
year-long leases locked in at certain
rates—that claims professionals can
use as necessary. Because market rates
for apartments can skyrocket during
a catastrophe, turnkeys are especially
benefcial for helping contain costs
for insurance carriers deploying many
claims professionals over longer periods.
In the end, temporary housing
providers can ease the burden for both
catastrophe claims professionals and
their policyholders by helping manage
costs, setting expectations, and com-
municating ofen to prepare as much as
possible before a catastrophe hits. In ad-
FindingRoom
attheinn
dition, leading housing providers draw
from years of catastrophe experience
and building trusting relationships with
hotel chains and property managers to
anticipate a wide variety of policyhold-
er needs, ofer creative solutions, and
provide reassurance that policyholders
will be placed in their accommodations
quickly and efciently. CM
Joan McCarthy Mack is vice pres-
ident for Insurance Housing solu-
tions at Oakwood worldwide, a
provider of corporate housing and
serviced apartment solutions. she
has been a CLM Fellow since 2013
and can be reached at (203) 917-
2040, oakwood.com.