Risk and Restoration

In the wake of flood, fire, mold or natural disaster, experienced restoration and recovery professionals understand that reducing risk and protecting policyholder belongings are mutually compatible goals. A speedy, efficient, and effective restoration process minimizes losses, reduces uncertainty, protects both policyholders and insurers from significantly high severity, and saves all parties time and frustration in the process.

 In that context, it is critical for insurance professionals to have a strong understanding of accepted restoration best practices. By familiarizing themselves with common pitfalls and understanding the priorities in the wake of an incident, they can make smarter and more informed decisions about the restoration professionals they engage. In the process, they can not only better serve their policyholders, but they can also reduce their exposure.

What follows are the most important priorities, practices, and points of emphasis that should be addressed in the wake of a damaging incident that requires restoration and recovery services:

Move quickly

Speed matters. Quick response times can help minimize additional damage, increase restoration success, and keep severity down. The first 24 hours are particularly critical, and restoration professionals should be on-site as soon as possible to begin assessing the state of damage. While a speedy response can increase restoration efficacy for almost all home goods, it is especially critical for sensitive or complex home contents like textiles, electronics, and art. Quick, decisive action can interrupt the corrosive nature of many types of damage that leads to losses.

Don’t assume

Adjusters often make the (potentially costly) mistake of assuming something is non-restorable. Don’t assume! Contents restoration is almost always significantly more cost-effective than replacement, offering comparative severity reduction of around 70-80%. Instead of assuming a homeowner’s items are unrecoverable, allow trained and trusted restoration experts to determine the best course of action for each item. Restoration professionals can conduct a physical assessment of contents like textiles, electronics, and window treatments that can distinguish between damage from the event and other pre-existing wear and tear from UV exposure, humidity, temperature changes, and other age-related latent defects. The result is the opportunity to work collaboratively with the policyholder to make informed value decisions—leading to smarter and more efficient allocation of funds. The resulting reduction in severity can free up dollars that can be better utilized to replace any items that cannot be restored.

Test well

The goal of any restoration and recovery process is to get everything back to a pre-loss condition as efficiently as possible, which is why speedy and comprehensive electronic device testing and test cleaning of contents is so important. Documented, professional electronics testing is the first step in a restoration response that will achieve the goal of returning any damaged goods or property to a 100% pre-loss condition. From TVs to treadmills to toasters, pre- and post-restoration testing can determine if appliances and electronics are working with a level of detail and rigor (e.g. the temperature of the icemaker) that can indemnify an insurer against future claims.

Inventory and document

If a job doesn’t start right, it won’t end right, which is why optimizing restoration and minimizing exposure and liability starts with properly documenting all items in the house in their/its current state. Physical inventory and photo documentation is key. Be sure to engage policyholders in the process and keep them informed. For example, if a homeowner has a box of donation clothes or a closet full of broken appliances, they can communicate to the restoration company what does and does not need to be tested or restored. Contents that have been exposed to hydrocarbons or suffered water damage will likely need to be removed from the environment to be restored—and only returned once the structure itself has been cleaned and restored. But that process cannot proceed until inventory taking and documentation has concluded.

Avoid further damage

The importance of insurance adjusters and on-site personnel being vigilant when visiting restoration sites to minimize additional damage and accurately evaluate impact cannot be understated. It’s not just about taking action to prevent further damage, but sometimes it’s about knowing what not to do. For example, introducing heat to dry textiles before being cleaned after a water loss can set in stains. Trust the restoration experts to do their work, ideally partnering with vendors who can provide the kind of comprehensive services that further reduce complexity and minimize risk. The right restoration partner will have a production facility for processing soft and hard contents and cleaning and testing electronics; is adept at conducting physical inventory, removal and storage; and will have sufficient in-house restoration technicians available so that no subcontracting is required. Reducing the number of vendors streamlines the restoration, storage, and recovery process and helps achieve the foundational goals of reducing risk, severity, confusion, and liability.