General adjusters, liability and property adjusters, subrogation attorneys, defense attorneys, etc. may all have an interest in complex property losses. Fast response, immediate action and decisions made soon after the loss can have a large effect on the scope of damage and cost to repair. An engineering analysis to determine the cause of the loss can also impact the recovery of funds through subrogation. Do you find yourself asking: What is the cause of the loss? Is someone besides our insured responsible? Can the machinery, equipment or structures be repaired? How much will it cost for repair/replacement? Why did the sprinkler system not put out the fire? Why did the fire wall collapse? Who else owns this loss?
The Warren Group can assist you in answering the tough questions associated with complex property losses.
Who Else Owns This Loss
Subrogation. Whether you are defending or pursuing subrogation claims, you always want to know "Who Else Owns This Loss." Subrogation is a growing industry and companies expect adjusters at all levels to identify claims with subrogation potential. Use reminders in the Who Else Owns This Loss checklist to analyze losses. Fire losses pose another potential for subrogation. Basic guidelines found in Who Else Owns This Fire Loss? will help ensure a more successful outcome when followed.
Use NFPA 921 to Analyze the Origin, Cause, Spread and Assign Responsibility of the Fire or Explosion.
NFPA 921 is the only peer reviewed fire investigation publication. With the recent Supreme Court rulings of Daubert and Kuhmo Tire, utilization of a peer-reviewed scientific method is more critical than ever when it comes time to testify. The fire investigator must determine the origin of the fire, the cause of the fire and the cause of the fire spread. In many cases, the cause of the fire is not the direct cause of the casualties or damages. Read Code Violations Result in Senseless Deaths for a more in-depth look at the investigation into the cause of a fire and the cause of the casualties. Use the basic guidelines found in Who Else Owns This Fire Loss? when investigating fire losses.
Utilize an Involvement Matrix to Understand Responsibility
An Involvement Matrix can help you and a jury to understand the responsibility of various parties in complex losses. Download the Involvement Matrix template in a Microsoft Excel format. With this Excel spreadsheet do the following: 1. Across the top list all parties involved. 2. Down the left side list all of the causes. 3. Then fill in the blocks under each party. Fill with a black rectangle next to each cause if the party had a primary involvement and a gray box if the party had a secondary involvement (knew or should have known about the cause and taken action to prevent it). In the end, the matrix will illustrate the involvement of each party. It is easy for a jury to understand "He who has the most black or gray loses." Read Investigation Saves Money on Tank Explosion and Settling Complex Claims with the Responsibility Matrix to obtain a better understanding of how to utilize the involvement matrix.
Machinery and Equipment Damage Appraisal
Machinery and equipment exposed to fire or flood may have damage from heat, smoke or water. Depending on the proximity of the machinery and equipment with respect to the fire, the equipment may have a combination of any or all three types of damage. Machinery & Equipment Damage Appraisal Guideline #100 along with Guideline #101 outline signs of fire damage and methods of repair. Machinery & Equipment Damage Appraisal Guideline #200 and Guideline #300 address flood damaged machinery and repair.