Subtitled: WHAT IS THE VALUED POLICY LAW HY …...structure, mobile home … " • Purpose: To facilitate prompt settlement of claims after total losses by making it unnecessary for

Subtitled: WHAT IS THE VALUED POLICY LAW & WHY DO I CARE?

O This panel will offer a brief overview of the VPL and the latest interpretations of the statute, as well as a discussion of the VPL’s relevancy to insurance claims practitioners in 2014, with and without storms, through answers to several essential coverage questions. We will review: what property the VPL covers; when the VPL applies; what is a total loss; what is a constructive total loss; loss by both covered and excluded perils; VPL application to Ordinance and Law coverage; Tips on Adjusting a Total Loss

O We will discuss the building code’s application to various loss

fact patterns to determine when a structure can or cannot be rebuilt; and if rebuilt, to what standards.

Introduction and purpose of the Valued Policy Law

Fla. Stat. § 627.702

• Applicability: Determines the insurer's liability under the policy for a total loss

• § 627.702(1)(a): "In the event of the total loss of any building, structure, mobile home … "

• Purpose: To facilitate prompt settlement of claims after total losses

by making it unnecessary for insured to prove value of property • § 627.702(1)(b): "The intent of this subsection is not to deprive

an insurer of any proper defense under the policy, to create new or additional coverage under the policy, or to require an insurer to pay for a loss caused by a peril other than the covered peril.

Introduction and purpose of the Valued Policy Law

Fla. Stat. § 627.702

O Exposure: Policy liability is stated amount/value insured for which premium was charged and paid. O Face Value- value ascertained from the face of the

policy without aid of extrinsic facts or evidence O "Valued" Policy vs. "Open" Policy:

O Valued Policy establishes value; proof of value not required

TOTAL LOSS O Total loss under the identity test. Loss of

identity and specific purpose. O Lafayette Fire Ins. Co. v. Camnitz, 149 So.

653 (Fla. 1933). O Citizens Property Ins. Corp. v. Hamilton, 43

So. 3d 746 (Fla. 1st DCA 2010)

CONSTRUCTIVE TOTAL LOSS

O Government rules require (e.g., ordinances, regulations) that the building must be demolished. O Netherlands Ins. Co. v. Fowler, 181 So. 2d

692 (Fla. 2d DCA 1966)

Building Total Loss vs. Repair under the Florida Existing

Building Code O 50% area Rule

O 50% Value rule O Repair - what does it mean with respect to new code provisions O Historic Buildings O Structural determination O Buildings in an unique location O Condominiums on the Ocean O Do the surrounding amenities of a high rise building (pool,

gardens, parking areas)) have any effect on the claim for damage to a building tower or structure.

O Does the value of a building on shallow foundations differ from one on deep foundations if the replacement cost can only be accomplished by deep foundations?

2010 FBC: Existing Building

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Chapter 5

Repairs Restore Original Code

Chapter 6

Alterations Level 1 Replacement

Chapter 7

Alterations Level 2 Reconfiguration

Chapter 8

Alterations Level 3 50% of Area

Within 12 Months New Code

401.4 A design professional or an owner must elect one or a combination of levels of alteration pursuant to Sections 403,404 and 405 of this code.

Building Code Interpretations That Support Litigation John C. Pistorino, P.E. Pistorino & Alam Consulting Engineers, Inc. January 31, 2014

FBCE- Repairs and Alterations Alteration Level 1,2,3 101.5 Compliance methods. The repair, alteration, change of occupancy, addition or relocation of all existing buildings shall comply with one of the methods listed in Sections 101.5.1 through 101.5.3 as selected by the applicant. Application of a method shall be the sole basis for assessing the compliance of work performed under a single permit unless otherwise approved by the code official. Sections 101.5.1 through 101.5.3 shall not be applied in combination with each other.

Exception: Subject to the approval of the code official, alterations complying with the laws in existence at the time the building or the affected portion of the building was built shall be considered in compliance with the provisions of this code unless the building is undergoing more than a limited structural alteration as defined in Section 807.4.3. New structural members added as part of the alteration shall comply with the Florida Building Code, Building. Alterations of existing buildings in flood hazard areas shall comply with Section 601.3

Problem of Claim And so the owner’s architect and engineer evaluate the damage caused by the hurricane and make a determination that the level of damage exceeds the “market” value by 50% this requiring ALL building systems except the Frame to be Upgraded.

101.5.5 Existing mechanical equipment. An agency or local government may not require that existing mechanical equipment on the surface of a roof be installed in compliance with the requirements of the Florida Building Code until the equipment is required to be removed or replaced.


401.4 A design professional or an owner must elect one or a combination of levels of alteration pursuant to Sections 403, 404 and 405 of this code.

SECTION 403 ALTERATION—LEVEL 1

403.1 Scope. Level 1 alterations include the removal and replacement or the covering of existing materials, elements, equipment, or fixtures using new materials, elements, equipment, or fixtures that serve the same purpose. Level 1 alterations shall not include any removal, replacement or covering of existing materials, elements, equipment or fixtures undertaken for purpose of repair as defined in Chapter 2 and described in Section 402. 403.2 Application. Level 1 alterations shall comply with the provisions of Chapter 6.


404.1 Scope. Level 2 alterations include the reconfiguration of space, the addition or elimination of any door or window, the reconfiguration or extension of any system, or the installation of any additional equipment. 404.2 Application. Level 2 alterations shall comply with the provisions of Chapter 6 for Level 1 alterations as well as the provisions of Chapter 7.


405.1 Scope. Level 3 alterations apply where the work area exceeds 50 percent of the aggregate area of the building and made within any 12-month period.

Exception: Work areas in which the alteration work is exclusively plumbing, mechanical or electrical shall not be included in the computation of total area of all work areas.

405.2 Application. Level 3 alterations shall comply with the provisions of Chapters 6 and 7 for Level 1 and 2 alterations, respectively, as well as the provisions of Chapter 8.


CHAPTER 5 REPAIRS

502.1 Existing building materials. Materials already in use in a building in conformance with requirements or approvals in effect at the time of their erection or installation shall be permitted to remain in use unless determined by the code official to render the building or structure unsafe or dangerous as defined in Chapter 2. 502.2 New and replacement materials. Except as otherwise required or permitted by this code, materials permitted by the applicable code for new construction shall be used. Like materials shall be permitted for repairs and alterations, provided no dangerous or unsafe condition, as defined in Chapter 2, is created. Hazardous materials, such as asbestos and lead-based paint, shall not be used where the code for new construction would not permit their use in buildings of similar occupancy, purpose and location.

506.1 General. Structural repairs shall be in compliance with this section and Section 501.2. Regardless of the extent of structural or nonstructural damage, dangerous conditions shall be eliminated. Regardless of the scope of repair, new structural members and connections used for repair or rehabilitation shall comply with the detailing provisions of the Florida Building Code, Building for new buildings of similar structure, purpose and location.

506.1.1 Nonstructural repairs exclusive of fixtures and furniture, the cost of which does not exceed 25 percent of the replacement value of the existing building or structure, with the approval of the building official, may be made of the same material of which the building or structure is constructed.


502.1 Existing building Materials. Materials already in use in a building in conformance with requirements or approvals in effect at the time of their erection or installation shall be permitted to remain in use unless determined by the code official to render the building or structure unsafe or dangerous as defined in Chapter 2. 502.3 Glazing in hazardous locations. Replacement glazing in hazardous locations shall comply with the safety glazing requirements of the Florida Building Code, Building or Florida Building Code, Residential as applicable.


506.2.2.1 Evaluation. The building shall be evaluated by a registered design professional, and the evaluation findings shall be submitted to the code official. The evaluation shall establish whether the damaged building, if repaired to its predamaged state, would comply with the provisions of the codes that were in effect when the building was permitted. 506.2.2.2 Extent of repair for compliant buildings. If the evaluation establishes that the building in its predamage condition complies with the provisions of Section 506.2.2.1, then the damaged elements shall be permitted to be restored to their predamage condition. 506.2.2.3 Extent of repair for noncompliant buildings. If the evaluation does not establish that the building in its predamage condition complies with the provisions of Section 506.2.2.1, then the building shall be rehabilitated to comply with the provisions of this section. The wind load for the repair and rehabilitation shall be those required by the building code in effect at the time of original construction, unless the damage was caused by wind, in which case the wind loads shall be in accordance with the Florida Building Code, Building.

506.2.3 Substantial structural damage to gravity load-carrying components. Gravity load-carrying components that have sustained substantial structural damage shall be rehabilitated to comply with the applicable provisions for dead and live loads in the Florida Building Code, Building. Undamaged gravity load-carrying components that receive dead or live loads from rehabilitated components shall also be rehabilitated if required to comply with the design loads of the rehabilitation design.

506.2.3.1 Lateral force-resisting elements. Regardless of the level of damage to elements of the lateral force-resisting system, if substantial structural damage to load-carrying components was caused primarily by wind effects, then the building shall be evaluated in accordance with Section 506.2.2.1 and, if noncompliant, rehabilitated in accordance with Section 506.2.2.3.

506.2.4 Flood hazard areas. In flood hazard areas, buildings that have sustained substantial damage shall be brought into compliance with Section 1612 of the Florida Building Code, Building.


SECTION 402 REPAIRS

402.1 Scope. Repairs, as defined in Chapter 2, include the patching or restoration or replacement of damaged materials, elements, equipment or fixtures for the purpose of maintaining such components in good or sound condition with respect to existing loads or performance requirements.

402.2 Application. Repairs shall comply with the provisions of Chapter 5. 402.3 Related work. Work on nondamaged components that is necessary for the required repair of damaged components shall be considered part of the repair and shall not be subject to the provisions of Chapter 6, 7, 8, 9 or 10.

Repairs vs Alterations

The FBCE divides work to EXISTING buildings as either a REPAIR or an ALTERATION.


ALTERATION. Any construction or renovation to an existing structure other than a repair or addition. Alterations are classified as Level 1, Level 2, and Level 3.

DANGEROUS. Any building, structure or portion thereof that meets any of the conditions described below shall be deemed dangerous:

1. The building or structure has collapsed, partially collapsed, moved off its foundation or lacks the support of ground necessary to support it.

2. There exists a significant risk of collapse, detachment

or dislodgment of any portion, member, appurtenance or ornamentation of the building or structure under service loads.

REPAIR – The patching, restoration and/or minor replacement of materials, elements, components, equipment and/or fixtures for the purposes of maintaining such materials, elements, components, equipment and/or fixtures in good or sound condition. SUBSTANTIAL DAMAGE- Damage of any origin sustained by a structure whereby the cost of restoring the structure to it’s before- damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred. SUBSTANTIAL IMPROVEMENT- Any repair, reconstruction, rehabilitation, addition or improvements of a building or structure, the cost of which equals or exceeds 50 percent of the market value of the structure before the improvements or repair is started. If the structure has sustained substantial damage any repairs are considered substantial improvements regardless of the actual repair work performed. The term does not, however, include either: Any project for improvement of a building required to correct existing health, sanitary or safety code violations identified by the building official and that are the minimum necessary to assure safe living conditions. Any alteration of a historic structure provided that the alteration will not preclude the structure’s continued designation as a historic structure. UNSAFE- Buildings, structures, or equipment that are unsanitary, or that are deficient due to inadequate means of egress facilities, inadequate light and ventilation, or that constitute a fire hazard, or in which the structure or individual structural members meet the definition of “Dangerous”, or that are otherwise dangerous to human life or the public welfare, or that involve illegal or improper occupancy or inadequate maintenance shall be deemed unsafe. A vacant structure that is not secured against entry shall be deemed unsafe. VALUE- The estimated current replacement cost of the building in kind.

405.1 Scope. Level 3 alterations apply where the work area exceeds 50 percent of the aggregate area of the building and made within any 12-month period.

Exception: Work areas in which the alteration work is exclusively plumbing, mechanical or electrical shall not be included in the computation of total area of all work areas.

506.1.1 Nonstructural repairs exclusive of fixtures and furniture, the cost of which does not exceed 25 percent of the replacement value of the existing building or structure, with the approval of the building official, may be made of the same material of which the building or structure is constructed.

Exception: Historic buildings shall comply with Section 502.4.

506.2.1 Repairs for less than substantial structural damage. For damage less than substantial structural damage, the damaged elements shall be permitted to be restored to their pre-damage condition.

SECTION 611 REROOFING

611.1 General. Materials and methods of application used for recovering or replacing an existing roof covering shall comply with the requirements of Chapter 15 of the Florida Building Code, Building or Chapter 9 of the Florida Building Code, Residential. Roof repairs to existing roofs and roof coverings shall comply with the provisions of this code.

Exception: Reroofing shall not be required to meet the minimum design slope requirement of 1/4:12 in Section 1507 of the Florida Building Code, Building for roofs that provide positive roof drainage (high-velocity hurricane zones shall comply with Sections 1515.2.2.1 and 1515.2.2.2 of the Florida Building Code, Building). 611.1.1 Not more than 25 percent of the total roof area or roof section of any existing building or structure shall be repaired, replaced or recovered in any 12 month period unless the entire roofing system or roof section conforms to requirements of this code.

611.2 Structural and construction loads. The structural roof components shall be capable of supporting the roof covering system and the material and equipment loads that will be encountered during installation of the roof covering system. 611.3 Recovering versus replacement. New roof coverings shall not be installed without first removing all existing layers of roof coverings where any of the following conditions occur:

1. Where the existing roof or roof covering is water soaked or has deteriorated to the point that the existing roof or roof covering is not adequate as a base for additional roofing.

2. Where the existing roof covering is wood shake, slate, clay, cement or

asbestos-cement tile. 3. Where the existing roof has two or more applications of any type of roof

covering.

606.3.2 Roof diaphragms resisting wind loads in high wind regions. Where roofing materials are removed from more than 50 percent of the roof diaphragm of a building or section of a building located where the basic wind speed is greater than 115mph or in a special wind region, as defined in Section 1609 of the Florida Building Code, Building, roof diaphragms and connections that are part of the main wind-force resisting system shall be evaluated for the wind loads specified in the Florida Building Code, Building, including wind uplift. If the diaphragms and connections in their current condition do not comply with those wind provisions, they shall be replaced or strengthened in accordance with the loads specified in the Florida Building Code, Building. 606.4 Replacement of windows and doors. The replacement of garage doors, exterior doors, skylight, operative and inoperative windows shall be designed and constructed to comply with Chapter 16 of the Florida Building Code, Building.


606.4 Replacement of windows and doors. The replacement of garage doors, exterior doors, skylight, operative and inoperative windows shall be designed and constructed to comply with Chapter 16 of the Florida Building Code, Building. Exceptions:

1. Opening protection exception: For one- and two-family dwellings constructed under codes other than the Florida Building Code and located in windborne debris regions, the replacement of garage doors and exterior doors with glazing, sliding glass doors, glass patio doors, skylights, and operable and inoperable windows within any 12-month period shall not be required to have opening protection but shall be designed for wind pressures for enclosed buildings, provided the aggregate area of the glazing in the replaced components does not exceed 25 percent of the aggregate area of the glazed openings in the dwelling or dwelling unit.

2. Opening protection exception for High Velocity Hurricane

Zones: For one- and two-family dwellings constructed under codes prior to September 1, 1994 the replacement of exterior doors with glazing, sliding glass doors, glass patio doors, skylights, and operable and inoperable windows within any 12 month period shall not be required to have opening protection provided the aggregate area of the glazing in the replaced components does not exceed 25 percent of the aggregate area of the glazed openings in the dwelling or dwelling unit.


Guardrails


1013.1 Where required. Guards shall be located along open-sided walking surfaces, including mezzanines, equipment platforms, stairs, ramps and landings that are located more than 30 inches (762 mm) measured vertically to the floor or grade below at any point within 36 inches (914 mm) horizontally to the edge of the open side. Guards shall be adequate in strength and attachment in accordance with Section 1607.7.

1013.1.1 Glazing. Where glass is used to provide a guard or as a portion of the guard system, the guard shall also comply with Section 2407. Where the glazing provided does not meet the strength and attachment requirements of Section 1607.7, complying guards shall also be located along glazed sides of open-sided walking surfaces.

Guards & Glazing


1618.4.6.1 Railings, stair-railings and other similar safeguards shall be designed to resist a load of 50 pounds per lineal foot (74 kg/m) or a concentrated load of 200 pounds (690 N) applied in any direction at the top of such barriers at any location on the safeguard, whichever condition produces the maximum stresses. The reactions and stresses caused by the above referenced uniform and concentrated loads shall be considered to not be acting simultaneously. 1618.4.6.2 Intermediate rails, balusters and panel fillers shall be designed for a uniform horizontal load of not less than 25 psf (1197 Pa) over the gross area of the guard, including the area of any openings in the guard, of which they are a part without restriction by deflection. Reactions resulting from this loading need not be added to the loading specified in Section 1618.4.6.1 in designing the main supporting members of guards. 1618.4.6.3 Laminated glazing will be permitted as an equal alternate to pickets, if tested by an accredited laboratory to satisfy the resistance requirements of this code for wind, live and kinetic energy impact loading conditions. The kinetic energy impact loading shall comply with ANSI Z97.1 using a 400 foot-pound (542 N) energy impact. The safety requirements of the impact test shall be judged to have been satisfactorily met if breakage does not occur or numerous cracks and fissures occur but no shear or opening through which a 3-inch (76 mm) diameter sphere may freely pass. The glass panel shall remain within the supporting frame. 1618.4.6.4 If the posts that support the top rail of exterior railings are substituted with glass, the assembly shall be tested to TAS 201, where the impacted glass continues to support the top rail and all applicable loads after impact.

.

Building Total Loss vs. Repair under the Florida Existing Building

Code O A total loss for construction does not account for loss of zoning

setbacks that may render a building’s ultimate real-estate value more damaging than the physical construction replacement costs. I.e. a building may not be allowed to be reconstructed even to the current building code requirements if it is not allowed by later zoning and land use regulations.

O Should the estimated value of constructions be documented by a contractor willing and able to construct at a fixed price?

O Are all structures equal simply by comparing their square feet numbers?

O Does the cost to replace account for poor maintenance and depreciation.

O Should a condition survey be upgraded by independent inspectors every year?

O Does replacement value consider depreciation and useful life? O Does the property tax assessor have anything to do with the actual

replacement value of the structure?

Application to "law and ordinance" expenses

O Cost of bringing any structure into compliance with applicable ordinances or laws. O Jossfolk v. United Property & Cas. Ins. Co.,

110 So. 3d 110 (Fla. 4th DCA 2013).

O Must be incurred. O Incurred vs expended

Application to "law and ordinance" expenses

O Citizens Property Ins. Corp. v. Ceballo, 934 So. 2d 536 (Fla. 3d DCA. 2006), decision approved, 967 So. 2d 811 (Fla. 2007). Supplemental not stated in dollar amount but as percentage of primary coverage.

Valued Policy Law – Property covered

O Real property but not personal property

O Usually does not apply to appurtenant or additional structures on the property (typically referred to as Coverage B structures). This would include buildings like sheds, cottages, and detached garages. Due to no stated value.

Application of Valued Policy Law viewed by Insured and

Insurer O Requires total loss AND by a covered peril. Total

loss by both covered and non-covered causes, e.g., wind and flood

• Florida Farm Bureau Cas. Ins. Co. v. Cox, 967 So.

2d 815 (Fla. 2007). Homeowners must prove the amount of any covered wind damage.

• Citizens Property Ins. Corp. v. Ashe, 50 So. 3d 645 (Fla. 1st DCA 2010)

Application of Valued Policy Law viewed by Insured and

Insurer O VPL amended (2008) Fla. Stat. §

627.702(1)(b); (the "Mierzwa Amendment") and considers all benefits actually paid on the loss.

O Insurer defenses preserved.

Flood verses Wind Driven Rain

O Flood

O How “Flood” damage different to wind driven rainwater damage

O Definition of Flood - what it is and what it is not O Can flood damage be claimed as part of water accumulating

on a roof top or other elevated structures O Flooding that occurs due to a buildup of surface water

runoff that cannot be absorbed by underground drainage systems

O Flooding due to storm surge- O FEMA’s flood maps and storm surge O Flooding due to rainwater runoff from adjacent properties O Standards of the Community for design of storm water

discharge systems O Storm sewer hydraulic reverse flow claims ( lift stations, sump

pumps, drainage wells, exfiltration, emergency overflow )

Discussion The claimants state that the damage to the lobby was the result of water flowing off the promenade deck through the door and store front resulting in three (3) inches of water covering the lobby area. Water was described as flowing eastward from the Deck into the lobby areas through the door and finally out the lobby front door down to the northeast driveway area. As stated above, in our experience the term “flood waters” is associated with a rapid accumulation of runoff from natural ground surface or the rapid rising of ground water due to storm surge. The Base Flood elevations established by FEMA having to do with a one (1) percent chance of being exceeded in any given year is a different concept from rain events for rainfall intensity being exceeded once in 25, 50 or 100 year intervals. The lobby area is above the all levels of the base flood elevation established at this site. There is no evidence that “flood” waters ever obtained levels that would affect the Lobby areas included in the claim. The ability for water to accumulate on the promenade Deck (roof of the garage) that is approximately 21 inches below the main Deck is a foreseen condition. No matter what the rainfall intensity is the ability for water to accumulate on the deck should be eliminated by Building Code mandated overflow suppers. In addition, the volume of water those can transverse into the lobby underneath an exterior door that is three (3) feet wide with adequate weather gaskets is a condition that can be controlled. It would appear that any weather event with wind driven rain or high intensity can compromise the existing condition. Thresholds are allowed a ¼ inch difference in elevation for some water control that will still accommodate handicapped accessible routes. In addition, exterior doors and storefront glazing (glass) is rated for water intrusion. Unless the door was left standing wide open, the accumulation of water in the lobby area described as being 3 inches deep does not hydraulically compute even if the water depth attains a 6 inch depth outside in the windows of the lobby entrance. Assuming that an exterior door is maintained with perimeter weather gaskets and piles for the prevention of water entry, the openings are too small for a significant amount of water to accumulate.

Blackwater Theory The claim that Blackwater has contaminated the marble and baseboards must be addressed. Blackwater is commonly associated with sewage and other contaminants that are highly unsanitary and that can affect human health. Such a claim would infer that the continued use and occupancy of the lobby having suffered contamination by Blackwater subjects the occupants to serious exposure to disease. The contention that grout or mortar supporting the tile is saturated with such highly unsanitary fungi, bacteria, algae should have been established by competent laboratory analysis and if found to exist, the Lobby, office areas and adjacent rooms should not be in use. The following is the definitions concerning the water source categories:

Cat #1 Clean Water - Examples: Rainwater, snow, melting ice, broken water lines, broken toilet tank. Cat #2 Gray Water - Chemical or biological contamination such as dishwasher, washing machines, sinks, showers, aquarium and waterbeds. Cat #3 Blackwater - Contains sewage and other contaminates that can include pesticides, heavy metals, toxic organic and inorganic chemicals. Water that originates from domestic or industrial wastes. Note: Rainwater that has passed over contaminates such as sewage backup can become blackwater.

An observation of the promenade Deck would conclude that the Deck is periodically maintained and kept in a clean condition. The issue of a backup of the storm drains from the garage below is highly improbable. Therefore, one must conclude that the rain water flowing over this deck has encountered sewage or some other highly contaminated source in order to classify it as Blackwater. As stated above, Blackwater claims are based upon a known source or laboratory testing to verify the actual conditions. As explained to us, the Association had retained a quick-response contractor to vacuum up water that had entered utilizing humidifiers and other equipment to clean up the finishes. Such response is proper to restore materials that can be exposed to water without permanent damage. Therefore, we are not satisfied that any detrimental damage has occurred to the marble tile surfaces.

Wood Baseboards Representatives of the Association had stated that moisture meter readings of 8% are maximum for wood and that readings were measured above the wood baseboard in the mailroom of 18%. Wood can endure moisture for short periods of time with no damage so long as mildew and organic growth does not occur. In fact, most species of wood can support readings of 20% for short periods of time with no ill effect. However, wood that is saturated for extended periods of time can develop mildew, expand and warp when it dries out. This does not appear to be the case in this instance. None of the wood baseboard is warped, cracked or otherwise separated. Some of the superficial damage observed at the corners is more consistent with impact from equipment such as floor polishing machines. The estimate provided for removal and replacement describes the Baseboards as 14 inch “hardwood” Hardwood can withstand much higher moisture readings and can dry out fully without any damage. That is why such quality wood is used in high volume areas and around marine environments. Such damage as observed can be easily repaired with refinishes at those locations. The issue of Blackwater has also been raised by the claimants as creating mold and mildew on the back side of the baseboards. No evidence was shown that this is the case. A full statistical sampling must be taken and observed or tested to demonstrate that any such contamination exists that would justify removal and replacement of the baseboards. The most damaging affect to the baseboard of the event of June 5, 2009 may be the need to remove it and reinstall it if the drywall behind it is damaged. Drywall There was no evidence of damaged drywall shown to us. It was stated that since the water level was at least 3 inches high the drywall must be damaged behind the high baseboard. However, drywall is moisture resistant such as brown board or green board. It is unknown what type of drywall exists in the partition walls around the perimeter of the lobby. Most fire rated drywall used in interior locations can be damaged in short periods when exposed to water. As noted above, it will be necessary for the actual evidence of damage utilizing test cuts behind the baseboards to be identified prior to recognizing such damage does exist. The mere fact that the weather event occurred does not automatically result in damage that qualifies for replacement. SPA, Elevator Pit and Parking Garage Equipment Rooms The claimants’ statements regarding water that flowed inside the parking garage and spa from the surrounding parking lots and landscaped terrain appears to be what did occur. The SPA has been fully refurbished and repaired utilizing new wood flooring wherein carpets had

previously been present.

506.2.2.1 Evaluation. The building shall be evaluated by a registered design professional, and the evaluation findings shall be submitted to the code official. The evaluation shall establish whether the damaged building, if repaired to its predamaged state, would comply with the provisions of the codes that were in effect when the building was permitted. 506.2.2.2 Extent of repair for compliant buildings. If the evaluation establishes that the building in its predamage condition complies with the provisions of Section 506.2.2.1, then the damaged elements shall be permitted to be restored to their predamage condition. 506.2.2.3 Extent of repair for noncompliant buildings. If the evaluation does not establish that the building in its predamage condition complies with the provisions of Section 506.2.2.1, then the building shall be rehabilitated to comply with the provisions of this section. The wind load for the repair and rehabilitation shall be those required by the building code in effect at the time of original construction, unless the damage was caused by wind, in which case the wind loads shall be in accordance with the Florida Building Code, Building.

506.2.3 Substantial structural damage to gravity load-carrying components. Gravity load-carrying components that have sustained substantial structural damage shall be rehabilitated to comply with the applicable provisions for dead and live loads in the Florida Building Code, Building. Undamaged gravity load-carrying components that receive dead or live loads from rehabilitated components shall also be rehabilitated if required to comply with the design loads of the rehabilitation design.

506.2.3.1 Lateral force-resisting elements. Regardless of the level of damage to elements of the lateral force-resisting system, if substantial structural damage to load-carrying components was caused primarily by wind effects, then the building shall be evaluated in accordance with Section 506.2.2.1 and, if noncompliant, rehabilitated in accordance with Section 506.2.2.3.

506.2.4 Flood hazard areas. In flood hazard areas, buildings that have sustained substantial damage shall be brought into compliance with Section 1612 of the Florida Building Code, Building.




Flood verses Wind Driven Rain

O Wind

O The design of a partially open building – how can it resist wind and driven rainstorms. Main frame still standing

O Damage below the base flood elevation due to wind and not flooding.

O How is wind driven rain damage different from long term water leaks.

O Breakaway walls that can be damaged by storm surge but then have to be built to withstand wind loads

O Wall openings and the gutting of a building

FEMA Flooding Criteria Normally the definition of flooding has to do with rising ground water from storm surge, temporary buildup of rainwater because of failure of drainage systems to disperse such water, and a rise is water levels that affect a general geographical area. Grade- or ground level is associated with flooding were water levels do not normally remain for a period of time. What is not included is ponding or a build-up of water on roofs, elevated decks or other areas above grade. However resourceful claimants have attempted to expand the definition so that flood insurance would cover water intrusion through doors and building interiors from pool decks and roofs. Attempts have been made to have the definitions expanded to include runoff that may be restricted due to clogged roof drains or wells that cannot accept more water due to capacity. LOCAL FLOODPLAIN MANAGEMENT - An ordinance or regulation adopted pursuant to the authority granted to local governments by Title 44 Code of Federal Regulations, Sections 59 and 60 for participation in the National Flood Insurance Program.


Adjusting a Total Loss O Regardless of the Cause of Loss, an adjuster

should be a good listener. O Listen to the insured describe the events leading

up to and during the loss event itself. O Listen to the insured describe the damages first

observed as well as subsequently discovered. O Listen to the insured’s concerns for the obvious

and visible damages but also for those latent or potential damages which have not yet manifested.

Adjusting a Total Loss O Whether the adjuster is representing the insured

or the insurer, the adjuster’ primary concern and focus of attention is to be for the insured. O One simple rule should govern us all, “Do unto

others as you would have them do unto you.” O Treat the insured with absolute fairness putting

the insured’s best interest above all... O Tempered by, adjust all claims in accordance with

the insurance contract.

Adjusting a Total Loss O Ascertain the need for EXPERT assistance in

determining the extent of damages. O Many highly skilled, qualified and experienced adjusters

work in the State of Florida but few, if any are Professional Engineers, General Contractors, Certified Industrial Hygienists or Architects.

O Observe the manifest damages, listen to the insured’s description of the loss event and make a determination regarding the need for EXPERT investigation.

O As the adjuster, when visible damages or concerns for suspected damages warrant, do not be afraid to recommend to your client (the insured or the insurer) to retain the services of a qualified expert to aid in the investigation of the loss.

304.2.1 Evaluation. The building shall be evaluated by a registered design professional, and the evaluation findings shall be submitted to the code official. The evaluation shall establish whether the damaged building, if repaired to its pre damage state, would comply with the provisions of this code for wind loads. Wind loads for this evaluation shall be those prescribed in Section 1609 of the Florida Building Code, Building. 304.2.3 Extent of repair for noncompliant buildings. If the evaluation does not establish compliance of the pre-damage building in accordance with Section 304.2.1, then the building shall be rehabilitated to comply with applicable provisions of the Florida Building Code, Building for load combinations, including wind. The wind loads for the repair shall be as required by the building code in effect at the time of original construction, unless the damage was caused by wind, in which case the wind loads shall be as required by the building code in effect at the time of original construction or as required by the Florida Building Code, and connections required by this rehabilitation design shall comply with the detailing provisions of the Florida Building Code, Building for new buildings of similar structure, purpose and location.

FBC Chapter 16 Structural Design


Adjusting a Total Loss O EXPERT investigations and report reviews.

O Accompany the EXPERT in his site investigation and once

again, be a listener. O Discuss the EXPERTS observations during the site

inspection and make inquiry. O Review carefully the EXPERTS written report, NOT JUST THE

CONCLUSION. O Inquire of the EXPERT for clarification when needed. O If the adjuster disagrees with the EXPERT, do not be afraid

to respectfully question his/her opinion or observation. It could be an error in the report or perhaps, the adjuster needs the additional clarification.

Sink Hole Claims

O The concept of sinkholes that is not related to building foundation settlement

O When is a sink whole claim not really the result of a sinkhole phenomenon.

O Long term organic settlement O Settlement due to Flooding O Settlement due to poor foundation preparation O Settlement due to blasting or excavation O Can sinkhole potential be evaluated from the Florida

Geological survey? O Should there be an estimate for value of loss for each

type of storm intensity. I.e. the stronger the structure the less potential therefore the less risk.

Additional Considerations O Don't be UNDERINSURED

O Will policy limits be enough to rebuild?

No. 1 Demonstration House Wind and Storm Surge “Sand Castle”

No. 2 Exposure to Atlantic Ocean (wind and storm surge)

No.2A Exposure to breaking waves

No. 2B Exposure to breaking waves

No. 3 Concrete structure above base flood elevation

No. 4 Round columns for storm surge

No. 5 Round columns below flood elevation

No. 6 Breakaway lower enclosure

No. 7 Breakaway wood walls

No. 8 Breakaway wood walls ( storage room)

No. 9 Elevated plumbing

No.10 Structural extension

No. 11 Wall/Window openings

No.12 Shutter protection

No.13 18 gauge steel shutters (panels)

No.14 Reinforced high impact windows (175mph) or 100 PSF

No.15 Rounded elevation for wind and water surge (extended column sizes

No. 16 Curved elevation for wind and water

No.17 Concrete roof with no roofing attachment

No.18 Highly corrosive environment

No.19 Non-corrosive fixtures / wind form / turtle

No.20 Plumbing elevated

No.21 Equipment tie downs

No.22 Ultimate protection

No.23 The reason why

Documents

Subtitled: WHAT IS THE VALUED POLICY LAW HY …...structure, mobile home … " • Purpose: To facilitate prompt settlement of claims after total losses by making it unnecessary for