A Kansas Pork Plant Rebuilds After Being Struck by Second Tornado
When a hog farm in Beloit, Kansas, was struck by a tornado on Saturday, April 14, 2012, the owners didn’t just lose four buildings, valuable farm equipment and several animals, they also lost the ability to serve their clients. The storm caused more than a million dollars in damages to Crumbaker Pork Plant which included severe damage to the plant’s processing system and the loss of approximately 40 pigs who were killed when a barn roof collapsed.
When Adjusters International’s team was hired by Crumbaker’s Attorney to measure and document the loss, they soon realized that it would be a challenging claim. Why? Several reasons including:
- It was the second tornado to hit the property in an eight-year period which called into question whether this tornado actually caused the property damage
- The insurance company’s initial offer was very low because they had not done a thorough inspection of the property or performed an accurate estimate of the damage during their initial visits
- And the client did not have business income loss coverage so the plant needed to continue operating during repairs in order to prevent business interruption losses. How did AI help Crumbaker Pork to repair its facilities and resume operations?
In order to overcome the many challenges within this claim, AI’s team made some smart moves.
It was the second tornado to hit the property in an eight-year period.Although AI did not handle the first loss, there were interesting issues that came into play with the fact that it was the insured’s second tornado loss. As is typical when two major losses occur closely together, the repair methodology put forth after the first loss was called into question.
In order to address this, AI turned to a building expert who was able to inspect the loss and prove through documentation that the 2012 tornado did in fact cause the current damage and that the previous tornado did not contribute.
The insurance company had not done a thorough inspection of the property or performed accurate estimations of the damage – AI’s team felt that the insurance company’s initial offer of $300,000 was too low due to its rushed and un-thorough initial inspection. Farm buildings, which are always very unusual and unique, require a great deal of time, knowledge and understanding to inspect properly.
To address the insurance company’s initial low settlement offer, AI’s building experts performed a lengthy and detailed inspection of the building in order to understand all the different components of the claim and assess what was needed to properly repair and replace lost and damaged property. It was remarkable when AI learned that the carrier’s representatives explained that their standard software program was not capable of enabling them to come up with appropriate values for the damages. AI’s efforts also included creating a detailed map of the whole property, making sure that every building was properly named on the map and documenting the excessive damage that had been sustained by each building so that the owners would receive the full amount that was owed to them under the policy.
The client did not have business income loss coverage so the plant needed to continue operating in order to mitigate business interruption losses – Although several buildings were severely damaged, the owners wanted to overcome the obstacles and continue operating in order to avoid disappointing their valued customers. This made quick repairs more important than ever.
To address the client’s lack of business income loss coverage, AI helped them to receive significant advanced payments from the insurance company early on in the process so that they could make the short-term repairs that were needed to run their business and service their clients. In the meantime, AI’s team worked on proving and establishing the true value of their loss so that the long-term repairs could be made.
With a lot of hard work and attention to detail, Adjusters International was able to successfully settle the business’ claim for upwards of $1 million which was almost four times the insurance company’s initial offer of $300,000. The client was able to resume operations quickly in the short-term and rebuild their plant in the long-term.
We found the [Adjusters International] team to be extremely knowledgeable, searching the policy .. on every detail, leaving no rock unturned. They treated our insurance company respectfully but demanded immediate attention. Adjusters International put in hours of heavy duty work to support our claim with everything on the up and up. We were quite pleased by the monetary outcome. The most uplifting and gratifying part of the entire ordeal are the integrity and character of the individuals of this group. All were hard working, timely and gracious, as well as outcome driven with integrity. It is very reassuring to find this quality in today’s world.”
David and Rebecca Crumbaker