Hurricane Season: What to

Hurricane Season: With hurricane season around the corner, learn how to prepare for property damage with these steps that will ensure maximum recovery. By CHIP LANE, The Lane Law Firm

What to Do Before Disaster Strikes

Pay close attention to three main things: policy limits, deductible and replacement cost coverage. Those are three simple things we “think” we know about, but the second and third categories often cause a lot of headaches.

The most critical time for your business and/or property to prepare for an eventual insurance claim is right now, before there is an imminent threat. Unlike tropical storms and hurricanes, that give us some number of days to prepare, most property damage events occur without any notice. Think about flash floods, fires, hailstorms, tornados, theft and vandalism. You don’t want to react after an event – frantically weighing the pros and cons when a little bit of planning could have saved you plenty of heartache, headache and a lot of money.

Here are a few crucial steps to help ensure you are prepared for an eventual insurance claim for property damage:

Review your Insurance Policy

The hurricane season of 2017 was the most expensive ever, with over $200 billion in damages. If you owned and/or managed property along the coast from Rockport to Houston that year, you were probably impacted in one way or another by Hurricane Harvey. The wrinkle that some owners did not anticipate was the Army Corps of Engineers flooding that occurred for days after Harvey was gone. Insurance policies are very technical in determining what is and is not covered, and some policies did not provide full coverage for all the damage from Harvey.

Pay close attention to three main things: policy limits, deductible and replacement cost coverage. Those are three simple things we “think” we know about, but the second and third categories often cause a lot of headaches. Meeting with your insurance agent before a storm threatens is the perfect time to review your coverages. You do not have to wait for renewal time to make changes to your policy either.

A.Policy Limits: These are almost always set by the carrier after they perform an inspection of the property and look at documents you submit, justifying the value. Some policies allow you to increase or decrease your limits but being underinsured can create a major problem in the event of a catastrophic loss. These limits are especially important when it comes to coverage for loss of rent or business interruption coverage.

B. Deductible: Your insurance broker can help you navigate options when it come to your deductible. Some options include a flat dollar amount or a percentage of your total insured value, however, pay close attention to the different types of deductibles in a policy. For example, you could have one deductible for a hailstorm and a much higher deductible for a tropical cyclone/hurricane. You may also have a deductible per building, so if you have a multiple building apartment community, that could make a very big difference in whether you get paid at all on a loss.

C. Replacement Cost Versus Actual Cash Value: This is the main area where property owners think they are covered for a loss and find out they might not be fully covered. Most people understand that the initial loss amount paid after a storm is depreciated based on factors like the age of the structure. The differentiator between the two is that an Actual Cash Value (ACV) policy ends with that one payment, but a Replacement Cost Value (RCV) policy allows you complete repairs and recover that depreciation. As you might expect, an ACV policy has a much cheaper policy premium but could cost you dearly after a loss, so choose wisely. Make Property Maintenance a Priority:

One of the most frequent reasons we see the denial or underpayment of an insurance claim has to do with “deferred maintenance” or the “wear and tear exclusion.” What that means is that even though a storm may impact the property, if the damaged item (e.g. roof/siding) was not maintained, the insurance company could deny the loss and claim the damage was not caused by the storm. Rather, they often claim it was poor maintenance that caused the damage. The easiest way to circumvent that argument is to create a maintenance schedule and stay on top of it.

Use Technology to your Advantage

With the ease and affordability of digital photography and cloud storage, preparing for a disaster and insurance claim is much easier now. No longer do you need to have filing cabinets of paper files of leases, transactions, receipts, etc., as all of those are easily scanned, stored and can be backed up in the cloud. Take advantage of the multiple vendors that offer cloud storage. The cost of this varies, but in most cases, 1 TB of data is often less than $100 per year. You may think having it stored locally on computers is enough, but when 8 feet of water destroy all of those computers, you will wish you had the data backed up to the cloud.

Additionally, while a photo may be worth a thousand words, it is often worth much more money for an insurance claim, too. Having good photos of the property condition and major mechanical items with model numbers all have a huge impact on property damage claims. It is a good idea to do an annual photo inventory of the property. If during your photo inventory you notice damage or issues, you’ll be able to stop any issues before they fester for too long.

Make an Emergency Plan

Most claims will not result in the complete destruction of your properties, but in the event of a major loss, business operations may be interrupted for some time. You’ll want to have a plan to have non-employees ready to assist. Making a plan and having contacts ready for repairs, off-site access to files and insurance policies will help ensure a quick turnaround and hopefully minimize your damages. Interviewing a contractor or insurance claims professional can and should be done before your property is damaged.

As with everything, they key an insurance claim to go smoothly is to be very prepared before anything happens. If things don’t go as planned, and your insurance company doesn’t properly handle the claim, well, that’s a topic for a different article.

Chip Lane is a Texas trial lawyer with over 16 years handling property insurance and business interruption insurance disputes for singlefamily, multi-family and commercial property owners. The Lane Law Firm, a proud supplier member of HAA since 2016, fights underpaid and denied property insurance claims on behalf of their clients throughout Texas. Visit www.InsuranceFighters.com for more information.

claim that an owner knew about the hazards of COVID-19 but the resident did not. This would support an argument that there is no duty to warn a resident of a hazard like COVID-19 because the resident already knows about it.

3. Even if no duty exists, any precautions an owner has taken with respect to mini- mizing the probability of transmission of the virus would be relevant as a defense

against liability. Many owners have closed or reduced activity in common areas, restricted maintenance services to emergency situa- tions only, and upgraded the cleaning of areas that residents may commonly touch. These could all be used in defense of an owner – that the owner has taken reasonable steps to minimize transmission of the virus and the potential exposure to residents.

4. If you have a resident or an employee who has tested positive for the virus at your property, it would be beneficial to seek the advice of the local health department. It may also be beneficial to send a letter to residents stating what has happened (with- out providing information regarding the resident’s identity) and what you are doing

regarding cleaning effected areas. Unfortu- nately, a positive test seems to come days after a person is actually showing symptoms. It is doubtful that any notice could prevent a resident who has already been exposed from being exposed. However, the communication with residents after you know about the po- tential exposure incident may be helpful in claiming that you have done what you can regarding the issue.

Who would have thought that a case in- volving spiders might help us defend against claims about the virus? However, this Supreme Court case may be useful. As we move into the next phase of the COVID-19 journey, it may be important to adjust your procedures to build defenses to this type of claim.

Want more “It’s the Law?” Want to see current and previous issues of ABODE online? Visit http://issuu.com/haa_abode.

MEMBERSHIP: ENGAGE! Recruit for HAA and become part of the Go-Getter Club.

1. Top team Destination Wedding - Management/Onsite Personnel with team captains Jessica Cantu, Cinch Cabinet Refacing Kits, and Melissa Friend, Greystar

2. Sponsors Best Plumbing and

Redevelopment Services 3. Top Recruiter Donna Farthing with four recruits

3

Claude Arnold Kenn Brown Tina Cavaco Terri Clifton Kevin Fenn Diane Gilbert Anita Harrison Dwayne Henson Mike Koch Merry Mount Monette Reynolds Sherry Stevenson Kirk Tate Suan Tinsley Sonny Unverzagt Del Walmsley Nancé Wells H.P. Paul Young Jeanne Marie Zublin Dicks HONORARY LIFE MEMBERS Members who have recruited more than 100 companies

Come Join Us! Go-Getter meetings are quarterly:

Thursday, July 9 Thursday, September 10 Thursday, December 10

All meetings start at 4 p.m. at Cadillac Bar & Grill. Visit www.haaonline.org/gogetters for details.

THE GO-GETTERS ARE THE BACKBONE of the Houston Apartment Association. By recruiting new members, the Go-Getter Club helps both new management and supplier companies and the association grow for the future. To join the club and get going on recruitment, see online at www.haaonline.org or contact Amanda and Kaylon in the Membership Department at members@haaonline.org.

Go-Getters Happy Hour

Thursday, March 12 at Cadillac Bar & Grill

OWNERS

A/M Acquisitions LLC

Amir Mahmoud 27327 Merrick Meadow Drive Spring, TX 77386 713-269-8455 Referred by Claudia P. Rubio

Blair Legacy Properties

Ashlee Blair 388 Bethany Road Sunnyvale, TX 75182 310-216-8552 Blair Legacy Homes

Excentury Investment LLC

Venus Garza 8800 Gulf Freeway Houston, TX 77017 713-910-3006 Casa Grande Apartments

Flip Street Property Management

Alexander Cedillo 13105 Northwest Freeway #500-110 Houston, TX 77040 832-308-3330 Referred by Bernice Cedillo, CAM

Full Tilt Assets LLC

Danielle Hoover 30 Glade Park Drive Missouri City, TX 77459 281-969-3810

R & J Assets LLC

Robert Summers 10015 Beacon Crossing Lane Cypress, TX 77433 713-504-5385 R & J Assets - Homes

RRW Properties

Russell Wiscovitch 3411 Garth Road #114 Baytown, TX 77521 713-489-9758 RRW Properties - Homes

Sentinel Peak/Summit Properties

Char McCurdy 5910 N. Central Exp. #980 Dallas, TX 75206 214-205-3230 Lakebridge Apartments

Sorrell Warren

Sorrell Warren 1415 S. Voss #110-419 Houston, TX 77057 713-766-1183 Sorrell Warren - Homes

Watermark Residential

Kristin Weldele 901 Wabash Ave. #300 Terre Haute, IN 47807 317-513-9204 Magnolia by Watermark

SUPPLIERS

Ages Consulting, LLC dba Alternative Green Energy Solutions

Zamara Munoz P.O. Box 92393 Southlake, TX 76092 817-402-0220 A/C Contractors, Construction MgmtConsultants, Electric Contractors, Electric Vehicle-charging docks, Heating Contractors, Heating Equipment & Systems, Lighting - Outdoor, Lighting Consultants, Plumbing Contractors Referred by Melissa Friend

Aryce Designs

Ariel Vargas 3616 Richmond Ave. #2103 Houston, TX 77046 281-236-6617 Event Planning Referred by Keely Park

ALL SUPPLIER MEMBERS are listed online at haabuyersguide.com, searchable by product/service category or company name.

Concrete Eurway LLC

Stephen Croon Jr. P.O. Box 6335 Katy, TX 77491 281-678-9970 Concrete Contractors, Concrete Repair, Concrete Stain & Sealer Materials, Asphalt & Asphalt Products, Paving Contractors

Everest Siding and Windows

Doinita Jones 11424 Spring Cypress Road #A1 Tomball, TX 77377 832-773-8221 Mold Inspection & Testing, Mold Remediation, Remodeling & RepairBuilding Contractors, Roofing Contractors, Siding Contractors, Window-Replacement & Repair

FCC Environmental Services

Mike Ewald 10077 Grogans Mill Road #466 The Woodlands, TX 77380 346-334-1444 Garbage Collection, Trash Service - Valet

Five Stars Painting

Jose Ortega 13280 Northwest Freeway #F402 Houston, TX 77040 281-258-4482 General Contractors, Painting Contractors

Freedom Furniture & Design

Diana Beck Lavine 6701 N. Beltline Road #120 Irving, TX 75063 972-385-7368 Interior DecoratorsDesigners, Furniture Sales

Fresh Aire of Galveston County

Doyle Williams III 2951 Marina Bay Drive #130-176 League City, TX 77573 713-443-2146 Air Purifying & Cleaning Equipment, Odor Control Referred by Leticia Rodriguez

Gadler Construction Inc

Trey Gadler 10006 Windriver Drive Houston, TX 77070 713-392-2036 Painting Contractors, Remodeling & RepairBuilding Contractors, Roofing Contractors, Siding Contractors Referred by John Bouren

iTech Monitoring

Gabriel Eid 25514 Oakhurst Drive Spring, TX 77386 936-242-6409 Security Control Equipment/Systems, Security Systems Consultant

Jose’s Painting & Cleaning Services

Jose Alfaro P.O. Box 840222 Houston, TX 77084 832-593-4521 Painting Contractors, Drywall Contractors

Monument Roofing Systems

Andrea Brown P.O. Box 22497 Beaumont, TX 77720 409-860-9343 Roofing Contractors, Roofing Consultants

Nationwide Trash and Janitorial Services LLC

Renee Simmons 215 Country Road 193 Alvin, TX 77511 713-677-9868 Trash Service - Valet, Janitorial Services

Restore Waste Alliance (Trash Valet Service)

Ronald Brooks 7231 Winding Canyon Lane Houston, TX 77083 512-294-5487 Trash Service - Valet, Trash Hauling

Royal Painting & Remodeling LLC

Suleyma Monge 23506 Ortensia St. Richmond, TX 77406 832-451-6124 General Contractors, Painting Contractors

SERVPRO of Town & Country

Jean Foty 2436 Peyton Road Houston, TX 77032 281-219-8180 Cleaning Specialists, Disaster Recovery/Relief

That Kimberly a Division of Marketing Doer LLC

Kimberly Scott 9702 N. Sam Houston Pkwy East #1015 Humble, TX 77396 512-560-0996 Marketing Consultants & Services, Media Consultants Referred by Derek DeVries, CAS

Turner Paving & Construction Inc

Scott Turner 10610 Tower Oaks Blvd. Houston, TX 77070 281-897-0197 Parking Area Maintenance & Marking, Paving Contractors Referred by Amanda Kelly

TWFG - Marandi Insurance

Brandy Carter 2620 S. Sam Houston Pkwy West Houston, TX 77047 713-728-7900 Insurance, Insurance Consultants Referred by Chris Rankin

I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”

I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”

ESSENTIAL WORK HAA Ambassador suppliers are out helping our members and their communities.

Mark your calendars and join us! Meetings are held on the first Wednesday of each month at Craft Republic, 11470 Westheimber:

Dates as of press time. Please check the calendar at www.haaonline.org for updates:

June 3 • July 1 August 5 • September 2 October 7 • November 4

THE AMBASSADOR ONE SOCIETY is an organized network exchange that helps supplier partners build their business contacts within HAA. It’s the perfect way for new suppliers to get started with the association. Group members share leads, make introductions and support HAA and its members. For details on how to join and for meeting dates, visit www.haaonline.org/ambassadors or contact Amanda in the Membership Department at 713-595-0316, or email asherbondy@haaonline.org.