Hurricane season is upon us, and insurance adjusters are bracing themselves for the worst as they pore over 2008 forecasts. Colorado State University's (CSU) Tropical Meteorology Project has upped its initial forecast for the 2008 Atlantic hurricane season, which began on June 1. The estimate now stands at 15 named storms, eight hurricanes, and four intense hurricanes. The probability for at least one major hurricane (Category 3 to 5) making landfall in the U.S. is set at nearly 70 percent, compared with an average of 52 percent over the past 100 years. The likelihood of an East Coast landfall, including the Florida peninsula, is 45 percent, while there is a 44 percent chance of a Gulf Coast landfall, including the Florida panhandle westward to Brownsville, Texas.
The nation's desire to live near the water coupled with increased shore line development has meant that more people are affected when hurricanes hit. Given this data, insurance adjusters, particularly experienced national catastrophe adjusters, must be equipped to quickly respond to and serve those affected by national-level disasters. When a hurricane strikes, a third-party temporary housing company can make all the difference.
Critical core competencies for ensuring success when dealing with third-party housing providers generally fall into four categories: access and communications; local housing market expertise and inventories; partnership with insurance companies and vendors; and knowledge of the subtleties of different disasters.
Access and Communication
Adjusters must ensure that those with whom they work have the ability to quickly secure communications in the affected area. Electricity, land lines, and wireless phone services will likely be disabled, meaning that once the disaster strikes, a temporary housing firm should still be able to quickly communicate with local and regional authorities and agencies. Are they able to rapidly respond by setting up at the staging area with the necessary communications to serve your team of adjusters, vendor partners, and especially your policyholders?
Another critical question that involves communications is whether the company provides true 24/7 access. If someone is planning to relocate or work on a temporary job assignment, they are usually given some lead time in order to locate housing. This is clearly not the case in the event of a national disaster. When a national disaster hits, there is no lead time, so one must ensure that the company appointed can respond quickly and adequately.
But what happens after hours? Are calls routed to an answering service? Does it ring the pager of an account representative that is already gone for the day? The ideal scenario is for all after-hour calls to go to a live representative who is able to rapidly gain access to inventories and book housing for both adjusters (if necessary) and policyholders. Response time and capacity to serve are important factors to consider when partnering with someone to handle the intricacies of disasters that give little or no warning.
That is why having 24/7 access is imperative. Success is measured by how quickly adjusters are able to get to the staging area and begin providing assistance to policyholders. A seasoned temporary housing provider can be an adjuster's most valuable partner, getting the individual adjuster as well as teams of national catastrophe adjusters into the affected areas and settled quickly. Fortunately, most temporary housing companies have emergency or national catastrophe plans and teams in place in the event of a large catastrophe. Lessons learned from Sept. 11 and Hurricane Katrina have ensured that the temporary housing industry is poised to provide rapid deployment of professionals to disaster sites.
Adequate Accommodations
"The clients have just been through the worst of the worst," said one seasoned national adjuster for a large insurer. "They've lost everything, so you first need to ask if they are okay and then act swiftly to find a place to put the policyholders up for the night."
This particular adjuster has more than 15 years of experience, including the Northridge earthquake and Hurricane Katrina. His experience reveals that adjusters are no longer looking solely at hotels to meet temporary housing needs. Policyholders are entitled to housing that is consistent with what they are accustomed to, meaning that hotels are simply a short-term solution — if they are even used at all. "We don't know all of the areas, so we rely on someone in the business to specifically help us provide the policyholders with one less thing to worry about," the adjuster said.
Post-Katrina studies revealed a severe housing stock deficiency of more than 100,000 units, further complicating the ability of adjusters to provide immediate housing relief to those affected. Adjusters can benefit when their temporary housing partners are also licensed realtors, with area expertise to affect rapid access to available inventories. Partnering with a temporary housing provider that has licensed realtors on staff with access to the multiple listing service (MLS) has enabled adjusters to quickly secure appropriate housing for their policyholders. Who better to understand the need for accurate housing inventories than a partner in the temporary housing industry that happens to be a licensed realtor? The local knowledge that this provides adjusters in the event of a national level catastrophe is priceless.
Working Well Together
Housing market expertise and providing superior access to inventories are just two ways temporary housing firms differentiate themselves. Most firms can provide temporary housing to policyholders, but peace of mind comes from partnering with a firm that can provide lodging to insurance staffs as well as offer the local, focused expertise necessary to deal effectively with distraught and displaced policyholders.
When a hurricane or another disaster strikes, a true partnership is needed — preferably with a firm that has a regional and local presence as well as the knowledge to address client-specific needs. Catastrophe adjusters must be confident in the capabilities of a given temporary housing firm to act on behalf of the end client. The benefit of having established relationships with a firm whose professionalism and national presence results in higher satisfaction and enables the adjuster to easily transition to the next claim.
When asked what they most need in the event of a national level catastrophe, many adjusters responded that a partner with a single focus tops their lists. Is the temporary housing firm able to provide the dedicated service that you require? Is your representative split between providing corporate housing and serving the insurance industry? Insurance industry knowledge coupled with a firm understanding of the local area where the disaster is concentrated is extremely valuable. A single point of contact that is available 24/7 also is a key to success. One should also consider if the company can truly collaborate with the adjusters to work with national vendors in obtaining ALE items as needed. All of these are ingredients to ensure a successful outcome for the policyholder.
Subtleties of Loss
Each type of catastrophe poses its own unique circumstances. The locations where disasters strike are all unique. Therefore, adjusters are best served by a partner that understands both the nature of the catastrophe as well as the local market. Firms with a national presence naturally have more experience in dealing with various types of disasters. The ability to understand the intricacies of each type of disaster and each client's situation helps ensure that all parties involved can begin the arduous journey back to a state of normalcy.
Whether it's double red hurricane flags blowing in the wind accompanied by broadcast warnings or wild fires yet to be contained, adjusters must ensure that they are partnered with a firm that has a dedicated catastrophe team with pre-established plans in place. The temporary housing firm must understand the subtleties of loss, the unique nature that each type of disaster poses, and the volume and depth of both knowledge and inventories. That pre-established understanding of what the adjuster needs is critical to enabling a fast response to victims. At the end of the day, that is how success is measured.
Chris Graves and Kelly McDaniel work for Marriott ExecuStay Insurance Housing Solutions, a branch of Marriott International that focuses specifically on temporary insurance and national catastrophe housing. They both may be reached at 800-990-9292, ihs@marriott.com.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.