Page 26 - The EDGE Fall 2024

Exploring Top Property Claim Issues
CONTINUED FROM PAGE 25
• Install security systems, additional outdoor
lighting, and closed-circuit TV monitoring.
If possible, supplement these with a visible
physical presence, i.e., security patrols.
• Paint exposed copper or brass waterlines
that could be removed and resold. Painting
these materials greatly reduces their value
and makes them less appealing to thieves and
vandals.
• Install impact-resistant glass in exterior doors
and windows to help reduce break- ins. This
can reduce theft, interior damage, and even
arson.
High-Severity Claim Categories
In identifying noteworthy claim categories, the
Trust considers not just claim frequency but also
severity — that is, how costly a particular claim
category is, regardless of how often it occurs.
High-frequency claims are often also high-
severity claims. This is the case with water and
wind.
Regarding the former, extensive water damage
can obviously be a costly issue on its own.
However, if left unchecked, it can lead to further
structural issues, fungal growth, and the need
for extensive repairs. Early detection systems,
regular inspections and maintenance, and swift
26
response to leaks or water intrusions are critical
in minimizing the financial impact of this kind of
damage.
Regarding wind claims, monsoon storms are
common culprits, as noted above. But severe
weather such as microbursts and high winds can
also occur unpredictably and cause varying levels
of damage. To reduce risk of loss, districts should
look at reinforcing roofs, replacing or repairing
old and worn shade structures and fabrics, and
keeping trees trimmed and healthy.
Finally, there’s one high-severity claim category
that did not also make the high- frequency list:
hail damage. Hail, while much less common in
Arizona than other parts of the country, is still
responsible for 11% of Trust property claim costs.
Though defenses against hail are limited, districts
can look at adding hail guards to rooftop HVAC
units and applying roof coatings to further protect
surfaces from hail strikes.
The Trust makes every effort to educate our
members on the most common property loss issues.
This is done through various member training
events, email blasts, videos, technical bulletins,
and articles like this one. Working together, we
can help mitigate risk and reduce damage, costs,
and downtime from property losses.
Janet Ramsey, Director of Claims, can be reached
at: jramsey@the-trust.org.
Dave Wheeler, Senior Property Adjustor, can be
reached at: dwheeler@the-trust.org.
|
THE EDGE FALL 2024