LRG Claims Case Study
Automotive Group Hurricane Claim
An anonymized case study involving a automotive group with 13 primary locations and multiple auxiliary properties. The August 2020 hurricane caused severe to catastrophic damage, forced operations to cease, and created substantial business-interruption concerns. The carrier initially estimated the property loss at $7.857 million, and the claim ultimately resolved for a documented $16.857 million settlement.
Case Overview
Executive Summary
In August 2020, a hurricane caused severe to catastrophic damage across an automotive group consisting of 13 primary locations and multiple auxiliary properties. Every structure was affected, including roofing systems, exterior elevations, structural framing, interiors, utilities, and business operations.
Some structures were considered total losses requiring full demolition. The insured retained a mitigation company immediately after the storm to secure the properties and reduce additional damage, while business operations ceased across the affected locations. The claim involved an incomplete carrier estimate, omitted damage, disputed causation, depreciation, delayed investigation or payment, building-code issues, business-interruption concerns, scope and repair-method disputes, pricing and valuation disagreements, and the complexity of multiple buildings or policies.
LRG Claims assisted policyholder representation through portfolio-wide inspections, invoice and incurred-cost review, additional-damage identification, measurements, estimating, policy review, contents and business-income documentation, proof-of-loss preparation, vendor and expert coordination, carrier meetings, claim presentation, and settlement support. The carrier's initial estimate was $7.857 million. The claim ultimately resolved for a documented $16.857 million settlement, a $9 million increase over the initial estimate.
Property and Claim Conditions
The Automotive Portfolio, Hurricane Loss, and Initial Claim Challenge
A Multi-Location Commercial and Industrial Automotive Portfolio
- Property: An automotive group consisting of 13 primary locations and multiple auxiliary properties.
- Cause of loss: An August 2020 hurricane affected every insured structure.
- Damage severity: The properties sustained severe to catastrophic damage, and some structures were total losses requiring full demolition.
- Affected systems: Roofing assemblies, exterior elevations, structural framing, interiors, utilities, contents, and business operations.
- Operational effect: The affected properties ceased operations, creating substantial business-interruption concerns.
- Immediate response: The insured retained a mitigation company to secure the properties and protect them from additional damage.
Catastrophic Damage, Multiple Locations, and an Incomplete Initial Position
- The documented claim issues included an incomplete carrier estimate and missing or omitted damage.
- The insurer relied on expert reports while the parties disputed causation, damage scope, repair methods, pricing, valuation, and depreciation.
- Some structures required demolition, while other locations involved roofing, exterior, structural, interior, utility, contents, and operational losses.
- Building-code considerations, business-income documentation, incurred restoration costs, multiple buildings or policies, and delayed investigation or payment increased the claim's complexity.
- The intake records a $7.857 million initial carrier estimate and an initial payment of $978,000.
LRG Claims' Approach
A Portfolio-Wide Hurricane Claim Documentation Process
LRG followed a structured property insurance claim process focused on evaluating every location, documenting physical and operational damage, reviewing incurred costs, preparing a comprehensive estimate, and presenting organized support for the insured's commercial property and business-interruption claim.
Inspect Every Location
LRG inspected the primary and auxiliary properties, reviewed the affected roofing, exteriors, framing, interiors, utilities, contents, and operational conditions, and identified additional damage.
Review Costs and Documentation
LRG reviewed invoices and costs incurred, organized supporting documentation, and incorporated property, contents, mitigation, demolition, specialty-item, and business-income information into the claim presentation.
Develop the Scope and Estimate
LRG developed a comprehensive scope of work and Xactimate estimate using an appropriate price list, specialty-vendor pricing, and documentation of incurred costs.
Present, Coordinate, and Negotiate
LRG presented the claim package, exchanged estimating files, coordinated information with restoration professionals, building consultants, engineering representatives, and the general contractor, and continued settlement discussions by telephone, email, and in person.
Claim Timeline
From the Hurricane Loss Through Claim Resolution
Documented Outcome
From a $7.857 Million Initial Estimate to a $16.857 Million Settlement
The intake documents a $7.857 million initial carrier estimate and an initial payment of $978,000. After LRG's portfolio-wide inspections, invoice and incurred-cost review, additional-damage identification, estimate development, business-income and contents documentation, proof-of-loss preparation, vendor and expert coordination, claim presentation, and settlement support, the claim ultimately resolved for $16.857 million. The final settlement was $9 million greater than the initial carrier estimate.
Why This Case Matters
Catastrophic Multi-Location Hurricane Claims Require More Than a Building-by-Building Estimate
A hurricane affecting an operating automotive group can create simultaneous roofing, exterior, structural, interior, utility, contents, demolition, mitigation, incurred-cost, and business-interruption issues across an entire portfolio. This case illustrates the importance of inspecting every location, distinguishing repairable damage from total-loss conditions, tracking costs, documenting operational impact, coordinating qualified support, and presenting one organized claim position across multiple buildings and policies.
LRG Claims assists businesses, automotive operations, commercial and industrial property owners, and other policyholders with hurricane damage claims, commercial property claims, business interruption claims, and disputed or underpaid large-loss matters.
Related Claim Resources
Learn More About Similar Property Claims
These related pages provide additional information about hurricane losses, commercial portfolios, business interruption, and other documented LRG Claims case studies.
Managing a Large or Complex Hurricane Claim?
Get a Free Claim Review From LRG Claims
LRG Claims represents policyholders, not insurance companies. Contact our team to discuss an automotive, commercial, industrial, multi-location, business-interruption, municipal, institutional, multi-family, residential, or other property insurance claim.
Client and insurer identities are withheld. This case study describes the facts and outcome of one property insurance claim based on the documented intake information provided. Every claim is different. Results depend on the policy, cause and extent of damage, available documentation, insurer position, applicable law, and other circumstances. Past results do not guarantee or predict the outcome of another claim. Public adjusting services are regulated by state law. Availability and fee structures vary by state.
