LRG Claims Case Study
City Hurricane Claim
An anonymized case study involving a city property portfolio with 151 insured locations, including municipal, commercial, and industrial facilities. An August 2020 hurricane damaged every insured location, with some structures sustaining catastrophic or total-loss conditions. The carrier initially estimated the loss at $16 million and paid $5 million. The claim ultimately resolved for a documented $64 million settlement.
Case Overview
Executive Summary
In August 2020, a hurricane damaged all 151 insured locations in a city property portfolio containing municipal, commercial, and industrial facilities. The locations varied substantially in size, construction methods, materials, occupancy, and public function.
The loss affected roofs, exterior elevations, structural framing, and interiors. Some structures were total losses, while others were repairable. Affected properties included city-owned office buildings, courthouses, maintenance facilities, a sewage-treatment plant, parks, and marinas. The city retained a mitigation company immediately after the loss to secure the properties and reduce additional damage.
LRG Claims became involved early in the claim and provided policyholder representation through inspections of every location, photographs, moisture readings, material sampling and specification review, insurer-estimate review, contractor-bid and invoice review, Xactimate estimating, specialty-vendor pricing, proof-of-loss preparation, consultant coordination, carrier meetings, claim presentation, and settlement support. The carrier initially estimated the loss at $16 million and paid $5 million. The claim ultimately resolved for a documented $64 million settlement.
Property and Claim Conditions
The City Portfolio, Hurricane Loss, and Initial Claim Challenge
A Diverse Portfolio of 151 Municipal and Public-Service Locations
- Property: A city insurance program covering 151 locations with varied sizes, construction methods, materials, occupancies, and public functions.
- Facilities: City offices, courthouses, maintenance facilities, a sewage-treatment plant, parks, marinas, and other municipal, commercial, and industrial properties.
- Cause of loss: An August 2020 hurricane affected every insured location.
- Affected systems: Roofing assemblies, exterior elevations, structural framing, interiors, building materials, and related public-service facilities.
- Damage severity: Some structures were total losses, while other properties sustained repairable damage.
- Immediate response: The city retained a mitigation company to secure affected locations and protect them from additional damage.
An Incomplete Initial Estimate Across a Large Municipal Portfolio
- The carrier initially estimated the city's damage at $16 million and issued a $5 million payment.
- The documented claim issues included incomplete estimating, omitted damage, disputed causation, depreciation, delayed investigation or payment, and code or ordinance considerations.
- LRG identified a deductible-application issue and challenged the carrier's reliance on costs incurred rather than a fully priced scope supporting a complete actual-cash-value calculation.
- The claim involved major differences in construction, materials, occupancy, damage severity, and repair requirements across 151 insured locations.
- Scope, repair-method, pricing, valuation, specialty-item, and multiple-building issues increased the complexity of the city's claim.
LRG Claims' Approach
A Location-by-Location Municipal Hurricane Claim Documentation Process
LRG followed a structured property insurance claim process focused on inspecting every location, documenting physical damage consistently, reviewing insurer and contractor information, developing a comprehensive estimate, and presenting one organized claim position across the city's diverse property portfolio.
Inspect Every Location
LRG inspected all 151 insured properties and evaluated roofing, exteriors, framing, interiors, total-loss conditions, repairable damage, and public-service facilities.
Document and Review the Loss
LRG documented damage through photographs, moisture readings, expert reports, material samples, specifications, insurer-estimate review, contractor bids, and incurred-cost invoices.
Develop the Scope and Estimate
LRG prepared a comprehensive Xactimate scope and estimate using the appropriate price list and specialty-vendor pricing for unusual systems and repair requirements.
Present, Coordinate, and Negotiate
LRG presented the claim package, exchanged estimating information, coordinated with restoration companies, general contractors, building consultants, engineers, and specialty vendors, and supported negotiations by telephone, email, and in person.
Claim Timeline
From the Hurricane Loss Through City Claim Resolution
Documented Outcome
From a $16 Million Initial Estimate to a $64 Million Settlement
The intake documents a $16 million initial carrier estimate and a $5 million initial payment. After LRG's location-by-location inspections, photographs, moisture readings, material review, insurer-estimate analysis, contractor-bid and invoice review, estimate development, proof-of-loss preparation, consultant coordination, claim presentation, and settlement support, the claim ultimately resolved for $64 million. The final settlement was $48 million greater than the initial carrier estimate and $59 million greater than the initial payment, allowing the city to proceed with repairs to its insured properties.
Why This Case Matters
Municipal Hurricane Claims Require Consistent Documentation Across Diverse Public Properties
A city portfolio can include courthouses, office buildings, maintenance facilities, utility infrastructure, parks, marinas, and other properties with very different construction, materials, occupancies, and public functions. Evaluating such a loss requires consistent location-by-location documentation and one coordinated claim strategy.
LRG Claims assists cities, municipalities, public entities, commercial property owners, institutions, and other policyholders with hurricane damage claims, commercial property claims, roof claims, and disputed or underpaid multi-location losses.
Related Claim Resources
Learn More About Similar Property Claims
These related pages provide additional information about hurricane losses, commercial and municipal properties, roof damage, and other documented LRG Claims case studies.
Managing a Large or Complex Municipal Claim?
Get a Free Claim Review From LRG Claims
LRG Claims represents policyholders, not insurance companies. Contact our team to discuss a city, municipality, public entity, utility, institutional, commercial, industrial, multi-location, or other complex 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.
