The combination of freezing temperatures in much of the country and the holiday season makes it trickier to identify certain subrogation opportunities. Often recovery opportunities are missed during this time of year because they are attributed directly to mother nature. However, the change of seasons is a time to be particularly vigilant and look a little deeper at the cause of claims. These opportunities can be logically grouped into 3 categories:
- Product malfunctions
- Maintenance contract failures
- Cold weather blues
Product malfunctions
Twinkly lights inside and out, candles in the windows, menorahs and Christmas trees welcome the season. While the cynics might read the flammable warning signs, the subrogation expert examines the quality of the wiring. As you assess claims, be sure to look deep to scrutinize the responsible party or product.
The many lights on display at this time of year bring their fair share of poorly constructed products. The scope ranges from candles and tea lights made with wicks that produce dangerous sparks, artificial pre-lit trees, window candles and more. When assessing liability, be sure to monitor product recalls and warnings closely. In some states, the retailer may be directly accountable rather than the manufacturer, based on the chain of commerce.
Unfortunate problems arise as the cold weather drives homeowners to fire up wood and pellet stoves. These products could be the cause of the loss or the installation was done improperly. These installations can be particularly complex depending on the location of the stove, home construction materials, and the size of the room where they are installed. Space heaters fall into a similar grouping and while fires are often assumed to be poor judgement by the user, it’s always worth researching the make and model to determine if it may have been subject to a recall or if warnings were insufficient.
Ice dam claims are particularly complex as so many factors can contribute to ice and water damage. The product itself and if it was properly used based on the application and local codes can be the issue. Negligent installation should be an area of investigation for these types of claims. Review if there was other construction or a remodel that may have impacted airflow in the area of the loss. The maintenance of the property and surrounding area could also be a cause and should be examined. A perfectly constructed gutter, implemented correctly with lining, will still clog and freeze more readily if it is not cleared of leaves and debris. Service contracts are a critical component of identifying negligence as discussed further in the next section.
Maintenance contract failures
The review of service contracts is an often overlooked element when reviewing the cause of damage. Maintenance is very important to the proper functioning of products within a property and this is especially true in the commercial space where the impact of an ice dam can have an exponential damaging effect.
“Puff back” claims is a common situation where recovery experts find maintenance issues. That first cool night when owners are turning on the heat can be disastrous if the furnace has not been maintained correctly. And these can be costly claims with soot levels messy enough and dangerous enough to require costly cleanups and short term additional living expenses. Labor is tight but these areas still require fundamental upkeep and the maintenance contractors can be at fault if the work was not performed or not performed correctly.
This guidance applies similarly to fireplaces and chimneys, AC units and the winterizing of a beach house. A maintenance contract will articulate the contract terms and what is in and out of scope for expected maintenance. Review these contracts in depth when an issue occurs to ascertain if the maintenance was done as expected and at the frequency required.
Cold weather blues
This final category addresses everything that is “normal” subrogation potential, but is exacerbated at this time of year. Mall parking lots are very busy in the December weeks, especially the weekends. Roads and sidewalks are slippery in freezing temperatures. Snowbanks create more difficult visibility at intersections. Ice storms do happen in parts of the country where temperatures rarely drop below freezing. These are just facts of the weather and seasonal changes.
Droughts have been affecting large portions of the northeast this year in much the same way the south/south western states are often affected regularly. This has caused wild fires and fire bans in parts of the country that rarely see these. A neighbor not aware of this could still use the fire pit or burn leaves and unknowingly cause a fire in a bush or tree that spreads to properties.
Subrogation recovery can be more difficult to identify on claims that appear to be weather related. This means unnecessarily missed recovery revenues. A subrogation expert must always remain curious and creative to correctly identify the liable party. It may be mother nature, but it also may be another party or product.
Shift Subrogation Detection assists in the detection of these recovery opportunities and helps ensure the liability is accurately identified. Learn more about Shift Subrogation Detection.
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