Insurance and Restoration Response to Flooding and its Failures

Sir Michael Pitt Report 2008 on Flood Restoration Failures :

      In June  2008 Sir Michael Pitt  published his damming report into the insurance and restoration industry response to flooding and its failures of 2007. In the section on recovery he points to the fact that insurers and contractors have no uniform approach to recovery or restoration. Most importantly he makes particular comment on the health and safety issues regarding habitability post flood event. He cites toxic mould, depression and other health issues with specific examples of how depending on where you are or who you talk to how you are advised to leave or stay at the property.

The actual restoration process was also found to be a matter of pot luck with no clear objectives or protocol from either claims management or contractors on how to dry or restore flooded buildings. The scale of flood claims or increasing contractor incompetence escalates the problems of the insured but also increases the opportunity for competent advice or support.

Recent contractor inspection and forensic audits have revealed the following typical issues:

• Failure to comply with asbestos legislation resulting in contamination spread. (this is often from uncontrolled Artex removal)
• Toxic mould caused by long term water damage and failure to control the environment, resulting in serious health issues.
• Total and unnecessary gutting of buildings.
• Failure to expose wet or contaminated areas resulting in sanitation issues.
• Failure to decontaminate properly usually the result of only spraying chemicals.
• Failure to contain the damage resulting in secondary damage far away from initial damage (typically evaporation and condensation/mould issues upstairs}.

Apart from the domestic property claims the commercial world was faced with even worse contractor skill sets. Invariably businesses are left for days or weeks before loss adjusters turn up and invariably this delay results in escalating damage caused by corrosion, condensation and massive unnecessary secondary damage.

Throughout the Pitt Report he identifies failures in drying and mould as major issues. It is interesting to note that training in the UK revolves around American drying protocols and the UK industry failed to notice different construction techniques, hence buildings are wet for months and years. New drying techniques again introduced from the USA may provide faster results but will also bring their own problems. From forensic or live audits I  undertook  from Lewes in 2001 to Carlisle  and Sheffield-Hull and Gloucester in 2008 every single claim was found to have major problems caused by claims management or contractors, and  drying or sanitation certificates proving worthless.