It is hard to put a dollar value on the water damage caused bysevere weather events.

Hiscox estimated the cost of insured damagecaused by Harvey and Irma at between $50 and $70 billion, and theNational Centers for Environmental Information put thecost of severe floods in Missouri, Arkansas and California at $3billion.

Of course, water damage is not limited to superstorms but aremore consistently caused by broken water mains or pipes, expiredwater heaters, ice dams or roof failure.

Effective inventorying of water-damaged sites is a skill everyclaims professional should have in their arsenal. Here are fivehandy tips to help.

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Proper PPE will depend on the environment in which youare working, but can include goggles, hard hats, face masks,supplied air, gloves, Tyvek suits and booties. (Photo: P.Harman) 

1. Safety first

Safety must always be your first priority when assessing waterdamage. Hazards include the risk of structural collapse, exposureto toxins (particularly sewage contamination and mold), an influxof rodents or other pests, and the risk of electrocution. Ask thepolicyholder to confirm the likely source of the water, and theheight to which the water rose. This will help you to estimate thescale of the damage and the probability of contamination.

Ensure the safety of the policyholder and any third parties, andalways use protective equipment. Your basic kit should include afacemask and eye protection. You may also need a full or half maskwith respiratory filters, along with water resistant gloves andboots and a Tyvek suit. It pays to be prepared for anyeventuality.

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Collect whatever items can be saved, restored or cleaned.(Photo: American Technologies, Inc.)

2. Save what you can

See if anything can be salvaged from the site. Non-porous itemslike glassware and ceramics can probably be saved. Hardwoodfurniture, some textiles, electrical equipment and appliances mightbe salvageable. Upholstered sofas, rugs or other soft items orfurniture made of porous wood will probably have to be safelydisposed of. That said, there are new industrial strength drycleaning technologies today that can restore soft goods andhardware such as ceramics and consumerelectronics.  

Be guided by the value of the item, the cost of cleaning andrestoration, and the risk to health. Even though a child's plastictoy is not porous, the potential risk of contamination is not worthtaking.

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Doing a claims inventory involves capturing photos of thedamaged contents and writing down or creating a computer inventoryof the items. (Photo: American Technologies, Inc,)

Survey the site

Next, make a thorough inventory of all contents room by roomwith the policyholder. This will furnish you with a wealth ofinformation, but may be upsetting for the homeowner. Be patient,and take your time. In CAT situations where deployment of claimspros may be stalled or delayed, self-service websites like HarveyContents.comor IrmaContents.com can go a long way to helpclaimants with inventorying, photo/video and receipt uploading, andgenerating the appropriate documentation for claims submission.

Collect as much information on each item as you can. Confirm thepurchase price, brand, materials, age and provenance. Payparticular attention to high-value items, heirlooms, antiques,original artworks and soft furnishings. Specialty items can be hardto value. You may need to recruit external appraisers with domainexpertise. Check whether any items have already been disposed ofand if there are any articles the policyholder is desperate tokeep.

This is also a good time to manage the expectations of thepolicyholders. Let them ask questions, give them a clear picture ofthe timeframes involved with the claims process, and exchangecontact details.

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It is important to document damage throughphotos, making it easier to prove the extent of the damage and whatwas affected by the weather event. (Photo: American Technologies,Inc.)

Document the damage

A site diagram is a great way of recording losses. Label therooms using the names provided by the policyholder to make askingfollow-up questions easier. Take photographs of everything from avariety of angles to catch useful information. For example,photograph a rug beside a tape measure to help you estimate theknot count. Highlight details that can help establish the value ofan item later, like serial numbers and brand names. Remember thatwater-damaged items can be very fragile, so handle with care.

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A thorough inventory of items will make it easier toidentify what was damaged and assess a value to the loss. (Photo:Shutterstock) 

Collate, catalogue and classify

Organize items on your inventory into easy to manage categories.For high value items, you want as much detailed information aspossible. For lower value goods, you can estimate a general figurefor a class of item. For example, toiletries, cleaning products andfood can be grouped together and a general estimate made. Designerclothes may merit individual valuation, but an estimated value maybe sufficient for a closet of children's clothes.

Documenting lost possessions in the aftermath of a catastrophelike Harvey or Irma may be the last thing people feel like doing.But this daunting task must be completed not only for claimspurposes but for cases where the claimant wants to receive a taxwrite-off for uncovered losses. Effective inventorying ofwater-damaged contents will make the claims process faster and lesspainful for all parties, making your job as a claims pro a wholelot easier.

Joel Makhluf is a vice president at Enservio and thedirector of the Property Innovation Summit, the insuranceindustry's premier thought leadership conference. Enservio is aleading provider of contents claim management software, paymentssolutions, inventory and valuation services for property insurers.Contact him at [email protected].

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