All Forum Posts by: Michael Meeks

Something else to keep in mind for coastal areas. If you have old cast iron plumbing drains, and sea water was mixed with the flood waters - You need to try and get plumbing included in your claim. Many will overlook the corrosive effect of the salt, but it will likely lead to systematic failure, and you want realize it until everything else is fixed. There are properties in New Orleans still dealing with issues, from Katrina.

Yes, several large apartment properties in New Orleans, one in Gulfport, along with lots of smaller projects due to plumbing, and lots of fires, similar in scope.

I don't think its an unreasonably request for the seller to ask for proof, if your reason for cancellation was due to the inspection.

Adjusters and contractors will be inundated with work, and will be completing estimates as quickly as possible. What @David S. said about the list goes on and on, is absolutely true. It creates a long report with a lot of words and prices. While it looks thorough and complete, and itemized by room, an adjuster can miss line items in one room, or every room. This could add up to $100's or $1000's.

Good topic.

1. Insurance adjusters overwhelmingly use a software called Xactimate. They download the current cost books for an area and build an estimate based on unit pricing, for items. They have line items for labor, material and equipment. 

This is where a meticulous person can build additional money into a claim that adjusters miss. You get a report of line items with prices and a big number at the end, and think its great, and may never know missed opportunities.

2. The insurance company will reimburse receipts. So its imperative to keep good records.

Read your policy. If they request information, and you need to pay someone to gather cost and other information, there may be funds available to also cover that cost. In my experience, it was $5000, and no deductible. This was for large apartment properties. Single family may not have this same coverage.

To answer your specific question, they will estimate the Cubic Yardage of debris to be removed. 

I just found a $350 Filson's computer bag.

I just found a $350 Filson's computer bag.

I have dealt with large claims on both floods and hurricanes. If you have a wind claim, you are facing high deductibles. If you have flood insurance, and are dealing with a flood claim there are very low deductibles. 

If you have flood damage you need to take pictures, and quickly remove the saturated contents, carpet, drywall, insulation, etc... The adjusters are going to balk at mold, because of exclusions in the policy. If you let it sit mold will start growing within days.

You need fans and dehumidifiers going. If there is no power, the insurance companies cover the cost of generators. 

I recommend having a representative review and negotiate your claim, and your contracts with contractors. Take the number the insurance offers, and you lose. Let the contractor handle all of the negotiations, and you will likely lose. Be smart and savvy, on both sides, and you can come out ahead.

Insurance wants the minimum payout. Contractors want the maximum profit. You want to maximize your claim and negotiate a contract that will include some extras. Also, don't let the contractor get ahead on money, you need to make sure you pay for work completed.

Make sure you retain leverage in all scenarios.

There are a lot of variables. There is going to be huge demand for apartments. Not only are tons of people displaced, you will have an influx of FEMA employees, insurance adjusters and contractors.

I was building a property in Pensacola when Ivan struck. We were just turning our 1st few buildings. Building inspectors became FEMA agents, but we were fortunate enough the housing demand was so high, they came out and performed our inspections. I quickly finished construction on the 240 units. They were 100% leased, with a waiting list, and people moved in as quick as I could get temporary CO's. The company I worked for sold the property within a few months, and walked away with a huge profit.

When Isaac hit New Orleans, the demand wasn't as high. At that time I was able to negotiate claims on several large properties. The hurricane deductible on (1) property was $1M. The initial offer from the insurance company was $1.9M. After negotiations we settled at $2.9M. 

You need somebody that knows what they are doing, or you will leave money on the table. Lots of it. You also need to get an adjuster out there quickly, and remediation under way. You need to be smart. You can get a lot of deferred maintenance covered and reposition your property. You also want to get units back on the market early, as this is peak demand.

Feel free to PM me if you have other questions about strategy.

I will take another look. I've contacted a company out Jacksonville, TX that may send a truck, or Goodwill can take donation, and get money back from Dell.