Damage to the infrastructure is one of the biggest problems that adjusters are having. “There are still some traffic lights out, but power has been restored — which is a good thing,” Hubbard said in mid-November. As of Nov. 11, approximately 150 households in Broward County, Fla., still did not have electricity.

In addition to causing traffic snarl-ups, the lack of electricity makes it more difficult to get work done. GAB Robins staff was able to get back into the Fort Lauderdale office the first weekend in November. Immediately following Hurricane Wilma's landfall, Hubbard and his crew were working out of the Orlando office. When power was restored in West Palm Beach, they were able to transfer to that location while they waited for the move back to Fort Lauderdale.

The widespread power outages, of course, also mean that many of the hotels in the affected areas are without electricity. “There were only about 100 hotels in Broward County that were operational out of 680,” said Hubbard. “We had adjusters coming into the area who could not find a place to reside, as well as do their work.”

Fortunately, Hubbard said, relations with policyholders are going relatively well. “Most people have been understanding that the adjusters have been out all year, especially with the four hurricanes of last year,” he said. “Most people have been cooperative.”

Florida Passes Deductible Law

In early November, the Florida legislature approved a law that allows storm victims whose properties sustained damage from multiple hurricanes this season to apply a single windstorm insurance deductible.

Under the new law, one full hurricane deductible, typically two or five percent of the total coverage for the structure, can be applied, regardless of the number of storms. Once the full hurricane deductible has been met, however, insurers can apply a non-hurricane deductible on future claims from other storms. The usual non-hurricane deductible for losses that result from other causes, such as fire or theft, is $500.

Other emergency rules enacted by the Florida insurance commissioner include a cap on public adjuster fees of 10 percent of claim payments, and giving consumers up to 14 days to rescind contracts with public adjusters. The emergency rule also prohibits public adjusters from demanding or accepting any type of compensation prior to the settlement of claims.

Database Tracks Flooded Vehicles

The National Insurance Crime Bureau has compiled a database of vehicles and watercraft affected by Hurricanes Katrina and Rita. The bureau is allowing people to check vehicle identification numbers and hull identification numbers free of charge to help determine whether specific vehicles or watercraft were reported as having been involved in either hurricane. The database already contains 120,000 vehicles, whose information was gathered from sources including insurance companies, salvage yards, and state and local authorities.

Although many vehicle claims were for damages from falling tree limbs and other wind-blown debris, a significant number of cars sustained flood damage to varying degrees, according to the Property Casualty Insurers Association of America. “The challenge that insurers, the FBI, and the state motor vehicle department face is corralling the cars, documenting the type of damage sustained, and correctly labeling the vehicle titles,” said John Eager, senior director of claim services for PCI. “Insurers are working to minimize the opportunity for fraud by setting up this online database.”

Vehicles damaged beyond repair due to floods in the Gulf Coast are classified as salvage, and the titles will be marked to reflect that status. Many flood-damaged vehicles are not repairable due to the water damage done to the electrical systems and other parts. In addition, some pose health hazards from contaminated water and the potential for mold and corrosion, PCI noted.