LRG Claims Case Study
North Carolina Apartment Community Hurricane Claim
An anonymized case study involving an approximately 342,000-square-foot apartment community in Jacksonville, North Carolina, where a hurricane affected every insured structure and the claim ultimately resolved with an additional $2.5 million settlement after a $15,100 initial carrier estimate and a $13,800 initial payment.
Case Overview
Executive Summary
In August 2011, a hurricane affected an apartment community in Jacksonville, North Carolina. The insured property included 10 three-story apartment buildings, 10 detached buildings, and an office, with approximately 342,000 square feet of insured building area. Every structure sustained roofing, exterior, or interior damage.
Before LRG Claims became involved, the carrier prepared a $15,100 replacement-cost estimate and issued a $13,800 actual-cash-value payment. The documented claim involved delay, underpayment, omitted damage, disputed causation, depreciation, code concerns, scope and repair-method disputes, pricing issues, and the challenge of evaluating numerous buildings.
LRG Claims provided policyholder representation through property-wide inspections, photographs, moisture readings, material sampling, expert-report review, measurements, estimating, policy review, claim-package preparation, expert coordination, carrier meetings, and settlement support. The claim ultimately resolved with an additional documented settlement of $2.5 million.
Property and Claim Conditions
The Apartment Community, Hurricane Loss, and Initial Claim Challenge
A Large Multi-Building Apartment Community
- Property: An occupied apartment community in Jacksonville, North Carolina.
- Buildings: 10 three-story apartment buildings, 10 detached buildings, and one office building.
- Size: Approximately 342,000 square feet of insured building area.
- Damage: Hurricane-related roofing, exterior, framing, structural, and interior damage affected every insured structure.
- Immediate response: The insured retained a mitigation company immediately after the loss to secure the property and help protect it from additional damage.
An Incomplete Estimate Across a Complex Property
- The carrier's initial replacement-cost estimate was $15,100, followed by a $13,800 actual-cash-value payment.
- The documented claim issues included missing or omitted damage, disputed cause of loss, excessive depreciation, and delayed investigation or payment.
- Building-code or ordinance issues, scope and repair-method disputes, and pricing or valuation disagreements required further evaluation.
- The number of buildings and the need for building-by-building documentation increased the complexity of proving the loss.
LRG Claims' Approach
A Property-Wide Hurricane Claim Documentation Process
LRG followed a structured property insurance claim process focused on inspecting every structure, documenting hurricane-related damage, identifying materials and specifications, preparing a comprehensive estimate, and supporting the insured's claim presentation.
Inspect Every Structure
LRG inspected the apartment buildings, detached structures, office, roofing systems, exterior elevations, framing, structural components, and interior areas throughout the property.
Document and Verify Damage
LRG documented the loss through photographs, moisture readings, measurements, quantities, expert reports, building-material samples, and material specifications.
Develop the Scope and Estimate
LRG prepared a comprehensive scope of work and Xactimate estimate using an appropriate price list, together with specialty-item costs obtained from experienced vendors.
Present, Coordinate, and Negotiate
LRG presented the claim package, coordinated information with carrier-retained restoration professionals, building consultants, and engineering representatives, and continued settlement discussions by telephone, email, and in person.
Claim Timeline
From the Hurricane Loss Through Claim Resolution
Documented Outcome
From a $15,100 Initial Estimate to an Additional $2.5 Million Settlement
The intake documents a $15,100 initial replacement-cost estimate and a $13,800 initial actual-cash-value payment. After LRG's property-wide inspections, photographs, moisture readings, material sampling, estimate development, vendor pricing, claim presentation, consultant coordination, and settlement support, the claim ultimately resolved with an additional $2.5 million settlement.
Why This Case Matters
Apartment Hurricane Claims Require Building-by-Building Documentation
A hurricane affecting a large apartment community can create different roofing, exterior, structural, interior, moisture, and repair issues from one building to the next. This case illustrates the importance of inspecting every structure, documenting material conditions, identifying specialty items, measuring quantities consistently, and presenting a coordinated property-wide claim.
LRG Claims assists apartment owners, multifamily property owners, commercial property owners, property managers, and other policyholders with hurricane, wind, water, roof, delayed, disputed, and underpaid property insurance claims.
Related Claim Resources
Learn More About Similar Property Claims
These related pages provide additional information about hurricane losses, large commercial and multifamily claims, Jacksonville representation, 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 apartment, multifamily, commercial, institutional, municipal, 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.
