As claims continue to escalate following Hurricane Helene, Milton’s total damage is now estimated between $250 million and $300 million, placing an immense financial burden on clients. For brokers, it’s become paramount to understand the significant and costly challenges commercial clients face after major storms, including structural damage and water intrusion.
Jason Gudaitis (pictured), chief operating officer at Gallagher Bassett Technical Services, emphasized that this challenging period also presents a unique opportunity for brokers to establish themselves as trusted advisors. By offering effective post-storm recovery strategies, brokers can help clients navigate the complex restoration process while also strengthening their properties against future storms.
When guiding clients through storm remediation, brokers should emphasize key issues: “Asbestos, lead paint, mold and bacteria are the typical environmental concerns that are associated with storm cleanup response,” shared Gudaitis. Effective remediation strategies often begin with a thorough visual inspection and initial testing of drywall, including thermal imaging, moisture content measurement, and surface sampling.
“Once mold starts, it grows fast, so it’s usually best to discard porous materials that can’t be dried out within 48 hours,” cautioned Gudaitis.
Storm damage can also disturb materials containing asbestos, such as insulation and roofing, which may release hazardous fibers into the air. Gudaitis advocated for effective asbestos remediation strategies that include sealing off affected areas with triple-sealed plastic barriers and employing “licensed abatement contractors who handle removal and disposal in compliance with local and federal regulations.”
Tip for brokers: Given the frequent and high costs associated with mold claims, as well as the health risks of asbestos removal, many commercial insurance policies limit or exclude coverage for these issues, often offering them as optional add-ons. Brokers should review clients' policies and encourage opting in to safeguard against costly remediation expenses.
By opting for mold and asbestos coverage, clients can minimize their exposure to legal claims related to health issues arising from these hazards, thereby protecting themselves from potential lawsuits. Further, promptly addressing mold and asbestos issues can preserve the condition and marketability of clients' buildings, ultimately safeguarding their investments over time.
Gudaitis highlighted the importance of addressing underlying issues before proceeding with full remediation efforts. “Part of the remediation process is finding the problem, whether it’s a broken pipe, flooding, or a general moisture issue. You can remediate all you want, but if you haven’t fixed the root of the problem, damage is going to keep happening,” he shared.
Tip for brokers: Encourage clients to choose licensed abatement professionals who offer written warranties or guarantees on their work. This approach adds reassurance about the quality of cleanup, and reduces the risk of costly rework down the line.
As Gudaitis pointed out, many jurisdictions have strict regulations regarding the removal of mold and asbestos. Working with reputable remediation partners ensures that cleanup efforts comply with regulations, helping clients avoid fines and penalties. As remediation work is completed, it’s also important for clients to keep thorough records of all work done.
Tip for brokers: Gudaitis emphasized documentation, instructing brokers to tell clients to “Document your phone calls, dates, times, and any correspondence with contractors or your carrier. If it’s safe to do so, take a video of the damage before, during, and after remediation efforts.”
Keeping a detailed record of damage and repair efforts can help clients prove their losses and minimize back-and-forth communication with insurers, leading to faster payouts so clients can recover and rebuild sooner. Additionally, having detailed records on hand can help clients address future issues, particularly with problems like mold, that may re-emerge.
Offering final advice on storm remediation, Gudaitis emphasized the need for brokers to inform clients about the importance of having a plan in place before a disaster strikes.
“When a storm hits or when you know a storm is coming, it’s important that there is a plan in place which includes knowing your policy and having your internal team, or contractor, whoever it is that you're going to call upon, ready to respond and jump into action as soon as possible.”
