FSBIT Alert:
Hurricane Irma Recovery Update
3+ Weeks from Landfall

• Members who have not reported damages or had Damage Assessments performed, should report any and all damages to Member-owned property caused by Irma to FSBIT as soon as possible.

• Adjusters have been visiting Member locations this week as FSBIT is currently deploying a state-wide rollout of insurance adjusters.
• Adjustment teams should be contacting you to schedule your site visits over the coming days.
• Adjustment teams are focused on visiting losses to buildings and larger structures. Some of these may be at secure facilities, such as water plants. Please ensure the appropriate personnel are available when scheduling site visits..

• Irma caused widespread minor damages to many scheduled buildings and structures. With the application of the Named Storm Deductible (NSD) as standard part of municipal insurance programs in Florida, for this event deductibles change from the per occurrence P&C deductible (found on the Declarations Page) to the Named Storm Deductible, which is calculated using a percentage (typically 2%, 3%, or 5%) that is multiplied by the scheduled value of each building/structure. In effect, each scheduled asset will have its own deductible.
• Due to the application of the NSD for wind-related damages, unfortunately many covered member damages to scheduled buildings and structures will fall below the deductible threshold for receiving insurance proceeds.
• Members will need to manage the recovery of the below-deductible losses assets directly as they would not be eligible for FSBIT Turnkey Recovery program unless the Member has a contract with SynergyNDS, Inc. to perform recovery of assets below deductible. This is to protect FSBIT Members from potential issues with FEMA public assistance when using a Recovery Program Manager for under-deductible losses.

• We know that many Members have also experienced damage to Property in the Open (PITO), such as fencing, lighting, playground equipment, etc.
• Covered PITO is addressed in a special endorsement in the 2016-17 policy. Covered PITO must not be excluded in the PITO Endorsement and must be located at a scheduled location in the policy.
• Damages to PITO covered under the Endorsement are subject to a PITO sublimit (found on the Dec Page of the FSBIT Policy) with a minimum limit of $100,000 per Member).
• The named storm deductible for PITO is triggered when damage amounts to all covered real property (building, structures, property in the open) exceed the Member’s P&C Deductible for Real Property (found on the Dec Page of the FSBIT Policy). Once triggered, the PITO deductible is calculated by multiplying the Named Storm Deductible Percentage in your Named Storm Deductible Endorsement (typically 2% ,3% or 5%) by the actual recovery cost of the covered PITO damages.

• While most PITO is included in the Endorsement, the following assets are not covered and would need to be scheduled separately in the Real & Personal property schedule in order to receive coverage:

• When repairing covered PITO damages, ensure that you are documenting a photo of the damages and keeping track of all costs incurred by your organization (overtime hours for salaried staff, hourly rates paid to subs, invoices for repairs, etc…) as these will need to be submitted to FSBIT for reimbursement.

• While much of the damage caused by Irma is covered under the FSBIT policy, most of Irma’s damage to Member buildings and larger structures will fall well below the Named Storm Deductibles triggered when Irma made landfall as a named storm in Florida.
  
• Members can apply for reimbursement for repairs to these damages by applying for federal public assistance through the Federal Emergency Management Agency (FEMA).
• Members need to ensure that they are following their internal procurement procedures for making repairs to damages assets. If Members’ internal procurement procedures prior to Irma include expedited processes for critical assets damaged due to catastrophic events, those will likely be respected by FEMA.
• The first step in applying for FEMA Public Assistance is to go to www.floridapa.org and apply. Follow the instructions and fill out the information in order to register in the system.
• FEMA has a site that answers commonly asked questions located at: https://www.fema.gov/public-assistance-frequently-asked-questions
• FEMA is currently busy responding to 3 major disasters (Harvey-TX, Irma-FL, Maria-PR). FSBIT anticipates that this will somewhat delay the process. Once Members begin scheduling their Kick-Off meetings, they should notify FSBIT using the propclaim@flcities.com email.

• Many Members are facing issues related to debris removal. In nearly all cases, debris from trees or any vegetation knocked over or damaged by the storm is not covered under the FSBIT Property Policy unless the debris is either:
  a) contacting an insured asset, or
  b) blocking immediate access to an insured asset & impeding recovery.
• Any Members that have or are seeking a debris management contractor should ensure that your agreements with said contractor include verbiage that indemnifies and remunerates your organization specifically from errors made by the contractor during the debris management process that would disqualify your organization from FEMA Public Assistance. We also strongly suggest you consult with your organization’s attorney prior to any procurement to assure compliance with any existing or emergency orders or directives applicable to debris removal, FEMA funding or the like.
• We have been getting requests regarding Member trees that have fallen on citizens’ homes/property.  In these cases, FLC will have to determine if the tree was dead or otherwise in a poor condition before rendering a coverage decision.  In most cases this is an “act of God” that would not be the fault of the FSBIT Member.  It is the homeowner’s responsibility to remove the fallen trees on their property and to mitigate additional damages.  Homeowners can be advised to file a claim with their homeowner’s insurance company.

• This is a very popular question among FSBIT Members. Through the FSBIT PACT (Public Assistance Closeout Team), we have worked with FEMA and Members on previous de-obligations from ‘04/’05 storms as well as recent Hurricanes Hermine and Matthew. We will be supporting Member FEMA PA Applications and associated project worksheet development, where requested, in order to minimize potential issues. We will work with the FEMA PAC specialist to review the project worksheet to ensure that there is no potential duplication of benefits and that the claim has been adjudicated correctly.  Information is already being captured in simpliCity under each Member’s claim to assist in the documentation process.
  

• FSBIT will analyze coverage on every claim presented and render an adjudication and settlement for covered damages. FSBIT recognizes that as owners of your property, you have the right to undertake repairs to your property as quickly as possible. If you begin repairing/replacing damaged assets, you must ensure that you first have a Damage Assessment performed or assure photos and descriptions of the damages are recorded and transmitted to nate@flcities.com. Without this information, your property damage claim may be jeopardized.

• Report any and all damages to Member-owned property caused by Nate.

• If you have reported damages to covered property to FSBIT, we will deploy an adjuster to your affected location(s). An adjuster will contact you to schedule the site visit as they are assigned by FSBIT.

• Some Members are facing issues related to debris removal. In nearly all cases, debris from trees or any vegetation knocked over or damaged by the storm is not covered under the FSBIT Property Policy unless the debris is either:
  a) contacting an insured asset, or
  b) blocking immediate access to an insured asset & impeding recovery.
• Any Members that have or are seeking a debris management contractor should ensure that your agreements with said contractor include verbiage that indemnifies and remunerates your organization specifically from errors made by the contractor during the debris management process that would disqualify your organization from FEMA Public Assistance. We also strongly suggest you consult with your organization’s attorney prior to any procurement to assure compliance with any existing or emergency orders or directives applicable to debris removal, FEMA funding or the like.
• We have been receiving questions regarding Members’ trees that have fallen on citizens’ homes/property. In these cases, FLC will have to determine if the tree was dead or otherwise in a poor condition before rendering a coverage decision. In most cases this is an “act of God” that would not be the fault of the FSBIT Member. It is the homeowner’s responsibility to remove the fallen trees on their property and to mitigate additional damages. Homeowners can be advised to file a claim with their homeowner’s insurance company.

• We don’t anticipate FEMA being a big actor in the Nate recovery. If Public Assistance is available to members, the FSBIT can support Member FEMA PA Applications and associated project worksheet development, where requested, in order to minimize potential issues. We will work with the FEMA PAC specialist to review the project worksheet to ensure that there is no potential duplication of benefits and that the claim has been adjudicated correctly. Information is already being captured in simpliCity under each Member’s claim to assist in the documentation process.
  
• If applicable, Members are advised to contact SynergyNDS, Inc. (FSBIT PACT Manager) after they have scheduled their individual FEMA Kickoff meeting. Synergy is currently setting up additional contact information for the FSBIT PACT Team, which will be distributed in subsequent FSBIT Alert emails.