In early 2012, Donan, a forensic investigation firm, launched a new service line, Lightning Investigation, focused on failure analysis of residential and light commercial HVAC units. In 2013, the service line will expand its coverage area to 17 states across the Midwest and Southeast. Below, Donan's General Manager of Lightning Investigation, P.E. Alex Nolan, discusses how claims handlers are adopting a new and innovative approach to HVAC claims.

Making the Business Case

HVAC claims aren't huge losses. The average cost of replacement for residential and light commercial units is around $4,500. As a result, many carriers don't see the value in investigating those claims. But adjusters are starting to realize that over the course of a year, or five years, all those replacements can add up to significant loss cost dollars, which can translate into higher rates for their customers.

Our Lightning Investigation services can really help on that front. Data from 2012 indicates that for every 350 investigations we perform, we help clients manage over $1 million in loss costs.

Understanding the Myth of Due Dilligence

Some carriers rely on contractor affidavits, a second contractor's opinion and/or lightning strike proximity reports. Unfortunately, the information may be biased if the contractor is performing the repairs, inaccurate if the contractor hasn't been trained in failure analysis, or irrelevant if a decision is made based on the results of a lightning strike report. A study we conducted in 2012 determined there is no correlation between the proximity of lightning and ensuing damage to the HVAC system.

To be sure about what really happened, you need an unbiased field investigation that includes collecting visual evidence, taking measurements and readings, and, if necessary, deconstructing the compressor.

Finding the Right Expert

Donan is a third-generation, family-owned company that prides itself on providing conclusive, unbiased and accurate forensic investigation services with the fastest turnaround time and best customer service in the industry. And we bring all that to the table with our Lightning Investigation services.

Our full-time forensic technicians are trained and certified using a program developed by mechanical and electrical engineers. Each Lightning Investigation includes a conclusive report that diagnoses the cause of failure, identifies which component failed and estimates the cost of repair or replacement. And our technicians do not provide repair or replacement services, so you can be sure you are receiving an unbiased opinion.

To find out more about Lightning Investigation, visit donan.com or call 800-482-5611.

Special Reports /

Donan Expands Lightning Investigation Service Line

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