[case studies]

Situation:
Client’s property was totally destroyed during Hurricane Katrina, suffering both flood and wind damage. Insurance company adjuster's initial response was that all damage was caused by flooding and proposed a $6,000 settlement to the client. The client felt the claim was in excess of $500,000. The insurance company was prepared to close the claim.


Action/Solution:
GEB agent reviewed the policy language carefully and arranged for a follow up meeting with the adjuster, the supervising adjuster and the client. During the meeting it became apparent that the adjuster did not have all of the policy forms comprising the client’s coverage, nor did the adjuster properly interpret the coverage forms. Agent presented arguments on behalf of the client, including documents/coverage forms supporting the clients claim.


Outcome:
After only a few meetings, the total amount paid to the client for Katrina damages was $458,000.

Situation:
When introduced to the account (a condominium association), GEB realized that the client was woefully underinsured on their flood insurance. The client had a limit of $500,000 for their building coverage. The total replacement cost of the building was $3,000,000. The old agent did not understand the proper application of flood insurance to condominiums. The client was underinsured and in violation of the coinsurance provision, which is part of all flood insurance policies for condominium associations.


Action/Solution:
GEB proposed that the client purchase their flood insurance correctly and increase their building limit to $3,000,000. This was possible by properly structuring the coverage for a condominium association. Despite the premium increase, the client understood the value of having the correct limit and accepted the recommendations of GEB.


Outcome:
During Hurricane Katrina, the client suffered a devastating flood loss. The total payment under their revised flood policy was $1,800,000. Had the revisions not been made (correcting the limit and eliminating the coinsurance penalty) the client would have received $21,000 from the flood loss. Following GEB’s advice meant $1,779,000 in additional claims payment to the client.