Wind v Surge

1. Wind v Surge John G. Minor, General Contractor Complete, Inc. www.completecontracting.com

2. Wind v Surge

3. National Flood Insurance Program [NFIP] • Originated in 1968 • Supplemented by the Federal Disaster Protection Act of 1973 : Requires federally backed financial institutions and the mortgage loans that originate from them to require flood insurance • Special Flood Hazard Area [SFHA] : 26% chance of being flooded during the term of a 30 year mortgage as compared to 9% chance of fire • Since 1978 $31.4 billion paid [as of 3/31/06] • 1994-2004 $2.4 billion in claims paid : $16 billion in 2005 • Currently 5 million policies in 20,200 plus communities • Source www.floodsmart.gov

4. NFIP Statistics • Flood Insurance Program ran up $17.5 billion dollars in debt • Interest costs are $900 million per year • NFIP rates are not actuarially sound and lead to a deficit with impact on the American tax payers

5. NFIP Flood Inundation Map Serves as an excellent tool when available after a loss. Maps are based on the observation of survey teams set up by FEMA.

6. NFIP Flood Inundation Map • An excellent tool, when available after a loss; these maps are based on the observations of FEMA survey teams. • FEMA Map Svc Center @ FEMA.gov provides free FIRMettes for planning and understanding of the replacement costs locally. • http://www.msc.fema.gov/

7. Mierzwa v Florida Windstorm • 2004 law enacted in Florida when so many storms hit the state. • “Mierzwa” was the rallying cry of plaintiff attorneys heard around the Florida peninsula. • This ruling essentially stated that “a property that was a deemed total loss [destroyed by a storm or as result of the 50% rule] could rely that 1-shingle of wind damage entitled the owner to policy limits on the wind policy.

8. Valued Property Law – The Theory Insurance companies paid based on a portion of this theory - some fought, lost, received judgments and have now have had those judgments removed. These claims are back to square one and will need to be proven based on the actual damages to the roof area, windows, exterior claddings, interior water and structural damages. Many of these structures have since been razed.

9. DOCUMENTATION

10. Location: Distance from the Coast Exposure to Non-Buoyant Items Being Carried in Flood Waters Exposure Type Higher wind speeds Gulf or Waterfront Height from Grade Protection

11. Location:

12. Pre-Existing Conditions: Construction Type Poorly maintained exteriors can uncover hidden problems that affect the way a structures reacts to wind and flood. Windows are more likely to blow in if all of the studs are rooted around the opening. Attention to how structures are built will connect the dots as to how they fail. . .

13. Pre-Existing Conditions: A claim settlement may have to rely on the owner’s or the insurance company’s underwriter’s description of interior components Pre-storm photos provided by the owner to determine original construction type and quality are very helpful.

14. Age of Structure: Age determines Pre-Firm or Post-Firm construction [Flood Insurance Rate Map] and will direct coverage after a flood loss. Current flood elevation requirements regulate new construction & substantially improved properties. One can be surprised by apparently slab on-grade construction in an area that would seem to warrant pilings; this was common in Hatteras after Hurricane Isabel and was based on the application of a LOMA–F a map alteration allowing coverage.

15. Typical Pre-Firm Damage:

16. Typical Post-Firm Damage:

17. DFIRM & LOMA Data: DFIRM data and LOMA designate current elevation requirements by revision date. Theoretically, structures built after a certain date will be built to the same elevation. Sometimes an owner will elect to build out a bottom floor regardless of good practice and/or local building code. This is a safety issue and a good local plain manager should disallow this practice. These areas invariably flood in lesser events and are havens for mold; they provide no safe place to live.

18. DFIRM & LOMA Data: Local municipalities regulate Elevation Requirements based on FIRM Maps, FEMA research and NFIP regulations; in some cases, additional requirements exist in certain areas. One instance is the 3’ Free Board requirement.

19. Elevation Certificate: One of first things to understand on any wind/water loss is the elevation of a property. This will tell you where are you in relation to sea level, grade at time of measurement and from floor to floor pre or post firm.

20. Elevation Certificate: • Determine if there are multiple elevations in a single structure that would affect flood lines • The timing of Permitting a Repair will determine the elevation requirements as municipalities adopt local codes and accept the maps drawn by FEMA for the local flood plain.

21. Elevation Certificate: http://www.nspsmo.org If you are in need of an elevation certificate for your property or residence; contact the National Society of Professional Surveyors.

22. Timing of Events: Factual Data Video Evidence Weather Data Storm-Chaser Information

23. Concurrent Events: Wind Driven Waves Rising Tidal Waters in Bays, Bayous & Sounds Storm Water Runoff Flooding from Lakes, Rivers and as a result of Dam Failure

24. Damage Indicators: • Local Meteorological Observations • Eye Witness Testimony and/or Video • Damage Associated with Flying Debris, Falling Objects and Uplift or Wind Damage

25. Still Water v Velocity Water Determined due to physical damage indicators: • Scarring on Pilings • Trees • Debris at Flood Level or Above

26. Physical Damage Indicators

27. Critical Early Documentation: • Photographs: • Roof • Trees/Exterior Damages • Building Components • Documentation of the Water Height - Still and Wave - in relation to the structure is important. [Grade & Sea Level]

28. Experts: • Meteorologist: Determine the timing of the different aspects of the claim as to time and intensity of a storm. • Structural & Forensic Engineers: Overlay the weather data to the structure to determine within a reasonable degree of engineering certainty that what portions of a structure would have been damaged by a given peril. • Cost Providers: Present the costs associated with the individual causation determinations and building characteristics.

29. Digital Photos: The use of digital photography is now the norm. Overlays, imbedded notations and audio can be installed in Xactimate and Adobe software programs.

30. Documentation : Digital Photos

31. Documentation : Digital Photos Digital photos can determine the degree of damage & allow you to map the water damage in a specific area.

32. Documentation : Digital Photos Conditions remaining after a loss can help in determining the overlay of the damage costs. In this case from Hurricane Katrina, the floor coverings and floor plan of this slab on-grade home is easy to identify .

33. Documentation : Digital Photos The site will reveal clues as to the former residence, i.e., granite countertops were identified in the deposition of the owners house pictured above. An existing slab or piling spacing will allow for at least a representation of the size of the structure pre-loss. Engineers will look at anchor bolts and identify in some cases they can establish in what way the structure was removed from the slab, primarily associated with the direction the bolts are bent and the time that the wind was blowing in that way and whether the flood waters were to the house yet or not in full height.

34. Documentation : Digital Photos Every detail remaining on the site will become evidence at trial as to expected stress loads a structure can be expected to withstand as to wind and flood causation.

35. Documentation : Digital Photos Digital documentation of the remaining structural components is crucial for file research down the road.

36. Thermal Imaging: • An excellent tool to detect anomalies in building components. Water holds heat longer and results in water-damaged building materials retaining heat longer than adjoining or similar dry substrate. • Thermal Imaging can accurately delineate damages from wind and flood as long as they do not comingle.

37. Documentation : Thermal Imaging

38. Documentation : Thermal Imaging

39. Measurements: Measurements From Grade – Photos and record elevations with landmarks are likely to remain; may require the use of a surveyor stick or marker. Local Benchmark Data – Documenting elevation from grade in a neighborhood can go a long way in making sense of the reported facts of the loss.

40. Documentation : Measurements Surveyor tools can tell the story visually in a way that an elevation certificate can not.

41. Documentation : Measurements Measurements from the Finished Floor Elevation (FFE) Document the measurement up close with a tape, as well as from a perspective view. Inside measurements will eliminate the ramp-up effect of wave action.

42. Structural Accounting: In more difficult files, expect to interview the builder and/or any other person that can provide testimony as to how a property was constructed, including special features.

43. Policy Determinations: • Direct Physical Damage definition in Flood Policy • Items to be Included in Wind Portion of a Claim • Items to be Excluded from the Flood Coverage • Delineation of HOA/HO6 on Commercial Residential Policies • Overhead and Profit Allowances

44. Substantial Damage Rule • ICC – Increased Costs of Compliance is available after a property is deemed 50% damaged for costs associated with the elevation of a new structure and demolition of the old. • Letter of Substantial Damage (50% rule)

45. Replacement Cost Building Code Data is used for replacement cost determinations and with original construction or substantial improvement to determine what code the structure should live to. Older structures are much more likely to be damaged by wind and/or flood.

46. Wind v Surge Out of date construction practices simply do not hold-up to catastrophic events.

47. It is important to understand how a structure is put together to determine where the flood stops and the wind begins.

48. Wind v Surge In the photo to the left, the effect Flood had removed the load bearing components of this spread foundation in one tier [left] at the same time the Wind has blown back the metal mansard.

49. Wind v Surge Code upgrades are a natural part of the evolution of coastal construction and are why buildings are made stronger today.

50. Total Loss Determination This is when an entire structure has to be brought down regardless of causation.