'Aloha': Life as a claims adjuster in Hawaii
Working as an adjuster in a place some would consider paradise comes with its own set of unique challenges.
I am often asked what it is like to be a loss adjuster in Hawaii. Living on the Big Island of Hawaii, I am surrounded by the beautiful Pacific Ocean and share the island with five volcanoes, including two that are still active. A 30-minute flight takes me to the island of Oahu and the center of Honolulu, packed with resorts, restaurants and beaches that attract tourists from around the world. But as I am writing, I feel the tremor of an earthquake that just registered 4.2 on the Richter scale, and I am reminded that the world of paradise and pineapples is not immune to its share of risks, hazards, and losses.
Risks in paradise
Hawaii is subject to hurricanes, tropical storms, flooding, hail, earthquakes, tsunamis and volcanic eruptions to name a few. Water damage is the most common culprit of loss. Hurricanes can pound coastal structures and cause flooding. Given the terrain of the islands, rainfall can occur in the mountainous areas and drain to the lower-lying roadsides where many buildings stand. Earthquakes can fuel tsunamis that wreak havoc among residents and tourists alike. Humidity and the island’s network of copper and cast-iron pipes do not mix well and result in ruptures that cause extensive water damage.
The unique design and characteristics of Hawaii’s buildings and structures must also be factored into the loss equation. Because of its extensive beauty, Hawaii is an international marketplace and draws wealth from around the world. Resorts, condominiums and residential compounds attract celebrities, executives and aristocrats with high-end tastes and unique building features. Rare and expensive materials are sourced from around the world to create a one-of-a-kind look and feel. This can include flooring, cabinets, countertops and other unique structural features. Buildings of this nature present unique challenges when assessing damage for repair and restoration.
It is amid these settings and characteristics that my job becomes interesting as an island loss adjuster. When a loss is reported, conducting an onsite damage assessment is a priority. More often than not, this requires air travel among the islands. This year’s COVID-19 restrictions have made this particularly challenging as each island dictates its own travel restrictions and guidelines.
For example, if I travel from the Big Island of Hawaii to investigate a flooding loss that occurred on Maui, I am required to quarantine for 14 days on my return. While I can continue to work from home, the quarantine restricts my ability to go to the grocery store, community center or beach outings with my family. Further, booking flights can be difficult when exemptions are in place, and scheduling is critical to the process.
Construction and labor costs are expensive in Hawaii. Contractors must pay labor well to offset the higher cost of living in the islands. Additionally, there are a limited number of contractors and remediation firms based in the islands, thereby driving costs even higher. Securing services to rebuild or repair damage can take weeks or months to complete. Addressing a widespread loss such as a massive hurricane or volcanic lava flow can be particularly challenging in such a setting.
Similarly, material costs are expensive. Many high-end materials may have been originally sourced from around the world and can be difficult to replace. If located, they must be put in a container for shipping, and this process alone can take several weeks or months. Even lumber and more common materials found at large retail stores must be shipped from the U.S. mainland. This, in turn, drives up material costs significantly.
Likewise, debris removal can be expensive. Hawaii burns much of its debris, but if contaminants, such as asbestos or lead paint, are involved, they must be shipped off the island for proper disposal.
As a loss adjuster, I have found strong relationships are essential. This includes relationships with clients, brokers, contractors, remediation firms, suppliers, and others who support the rebuild and repair process. The islands comprise a small community of players and reputation for performance is essential. Coverages and policy language can be as unique as the island risks, and brokers play a highly visible and important role in the process.
Loss adjusting in the Hawaiian Islands poses many unique challenges, but it is not without its rewards. Much time is devoted to travel between the islands. Hawaii is an international marketplace, and I have had the opportunity to work with individuals from around the world.
Moreover, it is immensely satisfying to work with individuals and businesses at a time of loss when their need is greatest. The ability to assess damages and to harness resources in a way that will restore the structure to reflect its original magnificence on these islands is very rewarding. And the resulting relationships that arise are priceless and underscore the importance of maintaining the character and beauty amid this tropical paradise.
Dereck C. Driggs is a branch claims manager/executive general adjuster with Sedgwick. Views shared are the author’s own.
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