Earl Weiss
Well-known member
At some later date I may write an article for an industry Mag. with more detail as a warning for operators Suffice it to say your insurance may not do what you think they will do. Summary:
Ceiling collapse (32 feet of concrete / precast) 3/27/16. (Sunday) Ins Notified 3/28/16
Takes insurance 2 months to decide they will cover me in the interim hammering me that I need to take measures to prevent further damage to structure.
Find out "Equipment" under this policy is considered part of the building coverage. (Fortunately building limit is high enough to cover but why have I been paying for $250,000 of personal property coverage which I thought was for equipment.)
By October 15 submit all figures for loss of Income claim thru September based on 3 year averages month by month less related expense savings for being out of business. Takes them 6 weeks to get me a check and they chop my Average by 20% saying there was a downward trend from 2014 - 2015 and the trend would have continued. After arguing that 2015 was higher than 2013 so the trend is baloney and only related to weather variations and a planned week shut down for conveyor replacement they finally reconsider and send me a check for the shortfall in Feb. 2017. (I was hoping to have Oct. - Dec. 2016 lost income paid by then.)
Since Jan. 15, 2017 they had all data for the lost income claim thru December 2016. They had it sooner but insisted on a P&L thru December 2016 even though wash income was $0.00. End of Feb. 2017 they tell me job should have been done by 9/30/16 so they are cutting off my lost income claim as of that date. Reason is their consulting contractor said job (Construction could be done in 10 weeks (Plus 2 months for equipment install) except for 3 large open items on report that could not be evaluated until demo was done.)
Insurance company totally ignores open item issue, and while actual construction might possibly take that long there was lots of work to be done before it could begin including engineering, permitting and hiring contractors for demo and then getting Architectural, Engineering, and permitting for Construction as well as obtaining materials and contractors to do the work, as well as delays for City inspections.
I hope to be open in 4 weeks or so, which means the lost income will have expired on the one year anniversary.
Old saying. "Men plan and the fates laugh".
Ceiling collapse (32 feet of concrete / precast) 3/27/16. (Sunday) Ins Notified 3/28/16
Takes insurance 2 months to decide they will cover me in the interim hammering me that I need to take measures to prevent further damage to structure.
Find out "Equipment" under this policy is considered part of the building coverage. (Fortunately building limit is high enough to cover but why have I been paying for $250,000 of personal property coverage which I thought was for equipment.)
By October 15 submit all figures for loss of Income claim thru September based on 3 year averages month by month less related expense savings for being out of business. Takes them 6 weeks to get me a check and they chop my Average by 20% saying there was a downward trend from 2014 - 2015 and the trend would have continued. After arguing that 2015 was higher than 2013 so the trend is baloney and only related to weather variations and a planned week shut down for conveyor replacement they finally reconsider and send me a check for the shortfall in Feb. 2017. (I was hoping to have Oct. - Dec. 2016 lost income paid by then.)
Since Jan. 15, 2017 they had all data for the lost income claim thru December 2016. They had it sooner but insisted on a P&L thru December 2016 even though wash income was $0.00. End of Feb. 2017 they tell me job should have been done by 9/30/16 so they are cutting off my lost income claim as of that date. Reason is their consulting contractor said job (Construction could be done in 10 weeks (Plus 2 months for equipment install) except for 3 large open items on report that could not be evaluated until demo was done.)
Insurance company totally ignores open item issue, and while actual construction might possibly take that long there was lots of work to be done before it could begin including engineering, permitting and hiring contractors for demo and then getting Architectural, Engineering, and permitting for Construction as well as obtaining materials and contractors to do the work, as well as delays for City inspections.
I hope to be open in 4 weeks or so, which means the lost income will have expired on the one year anniversary.
Old saying. "Men plan and the fates laugh".
