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Insurance Claims Primer | 1

THE RIGHT SERVICESAT THE RIGHT TIME

f o r T r u s t e d A d v i s o r s

Introduction

Why Globe Midwest Adjusters International ("GMAI")

What We Do For Your Client

Why Hire A Public Adjuster

What Can Go Wrong With Your Client's Insurance Claim

Complete Scope of Services

FAQ's

Reference Letters

CONTENTS3

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INTRODUCTIONAs a Trusted Advisor to your client we understand that your priority is to make sure that your client is able to fully recover. We can help!

Following a devastating event, such as a fire, earthquake, flood, or hurricane — or even a machinery breakdown affecting production — you naturally want to do what’s best for your client. Such claims, especially business interruption, can require substantial legal work and your role in providing the documentation for the insured claim will be critical to your client’s final claim settlement and recovery.

Consider adding us to your team!

With decades of experience, handling thousands of property and business interruption claims, our public adjusters have the unmatched professional resources to efficiently move through the complex insurance claim process to obtain a maximum claim recovery for your client.

Globe Midwest Adjusters International | 3

WHY GMAI? The Difference We MakeWe work exclusively for YOUR CLIENT, not the insurance company.

With offices in Southfield and Grand Rapids, Michigan, as well as Chicago, Illinois, we are called on by property owners, business owners, homeowners, and communities within and beyond the greater Midwest to expertly maximize their property damage claims.

Our insurance professionals have managed and negotiated thousands of claims for nearly every type of natural and man-made disaster. We have an unmatched network of resources to efficiently mobilize and be at your side right away when it matters most. We approach your client's claim from a position of advocacy and handle every step to get your client what he or she is entitled to from their policy.


WHAT WE DO FOR YOUR CLIENTOur consultants navigate your client's insurance claim and build the strongest possible foundation for their financial recovery. How do we do this? By:

Evaluating your client's insurance policy to establish the best possible strategy for presenting their claim to the carrier;

Valuing, documenting and substantiating every detail;

Negotiating on your client's behalf with their insurance company;

Keeping your client informed every step of the way; and

Ultimately settling the claim for the maximum amount and with infinitely less of an inconvenience for your client.


WHY HIRE A PUBLIC ADJUSTER?9 Things to Consider

1. Many people unknowingly settle for less than theirclaim is worth; when your client's settlement checkcomes, how will you know it is fair or accurate?

2.Unlike life insurance that pays policy limits byreporting a claim, most property insurance policiesrequire your client to document, inventory, price andsubmit the claim.

3. The adjuster’s job is to protect the insurancecompany’s interest as is the role of any “experts” theinsurance company sends to evaluate your client'sclaim.

4. Insurance claim settlements are often negotiable.Public adjusters will challenge your client's claimsadjuster.

5. Claim prep and settlement is not a science. It isvery subjective. Every item in your client's claim canbe calculated in a range of justifiable values. Wepush the settlement dollars higher.

6. Your client's Agent and Broker have little or noinfluence with the claims department. As much asthey want to help your client, they cannot helpdetermine their settlement amount.

7. Whomever is in control has the advantage.Without help, the insurance company is in control ofyour client's claim process. We take control awayfrom the insurance company and help you empoweryour client.

8. Hiring expertise when the situation calls for it isprudent. Your client risks leaving significant moneyon the table in the settlement process.

9. Having a team of seasoned public adjusters withmore than a century of experience on your client'sside is to their benefit.


WHAT CAN GO WRONG IN YOUR CLIENT'S CLAIM

It is an unfortunate reality that insurance company settlement offers can be much less than the damages are really worth. How can that be? Here are some examples:

BUILDING• Not all damages are included in

the estimates

• Damages are not priced properly

• Too much depreciation is taken

• Things are repaired that shouldbe replaced

CONTENTS/ PERSONAL PROPERTY

• Inventory is incomplete ormisallocated

• Inventory is priced improperly

• Too much depreciation is taken

GENERAL

• “Loopholes” in the policy that benefitthe insurance company.

• Hidden coverages you don’t know toask for

• Document submission deadlines aremissed

BUSINESS INTERRUPTION

• Inaccurate “Period of Restoration”

• Key information is left out of thecalculations

• Extra Expenses are not trackedproperly


SCOPE OF SERVICES

General

Conduct a comprehensive review of your client's insurance policy to outline available options.

Help your client comply with policy conditions and time stipulations that their policy may require.

Discuss procedures being followed to mitigate damages, implement temporary and emergency repairs and address any future protection that may be needed.

Discuss a path to get your business or property up and running and how best to keep tenants, customers or clients.

Prepare a detailed estimate while carefully researching, documenting, and substantiating every aspect of your client's claim.

Review all claim data with your client to establish the best possible strategy to suit their individual claim.

Present and support a detailed itemized claim package to your client insurance company in order to negotiate and expedite the best possible settlement.

Coordinate all inspections and meetings with the insurance company representatives, including their outside consultants.

Help with the coordination of architects, engineers, and contractors for the rebuilding of your client's home or business as it relates to their insurance claim.

Provide ongoing communication throughout every step of the process.


SCOPE OF SERVICES (cont'd)

Property Damage Claim

Business Interruption - Extra Expense

Investigate and analyze all property damage to the building.

Prepare a concise, well-documented repair cost estimate on the building.

Inventory, research, and price all damaged or destroyed contents.

Identify extensions and additional coverages such as codes upgrade, etc.

Prepare a concise, well-documented property claim.

Present and support the claim through settlement.

Negotiate replacement cost and actual cash value settlements that will positively affect your client's overall recovery.

Create the development of a restoration period with the insurance company adjuster and their construction consultants.

Evaluate discontinued expenses which become a credit taken by the insurance company to reduce your client's claim.

Determine expediting expenses; expenses related to reducing the loss.

Obtain all relevant financial and community rental records (pre and post loss).

Prepare various financial projections to determine approach to be claimed.

Prepare initial business interruption claim.

Communicate with the insurance company adjuster and their forensic accountant to obtain ongoing agreements and partial payments throughout the claim period.

Provide total business interruption claim management to ensure integration with the property and extra expense portions of the claim.

Prepare and continue to support the claim through settlement.

Advise management on identification of extra expense.

Coordinate tracking of extra expenses, prepare and submit claims throughout the recovery period.


FAQ's

What is a Public Adjuster? A Public Adjuster (PA) represents your client's interests when they have an insurance claim on their business or home. The works for your client, not the insurance company. Public Adjusters are licensed by most states and are recognized to provide a valuable function in protecting the interests of the public. PA’s put together the details for and assign dollar values to the claim on your behalf, ensuring that every dollar is captured in the claim.

Why haven’t I heard about Public Adjusters? Until a disaster happens, claim issues are not something a person would pay attention to. Also, people are under the false impression an adjuster for the insurance company is their advocate, ensuring a full, maximized pay-out from a claim. That is why PA’s are pro-active in reaching out to offer needed services to people suffering a recent property loss.

Isn’t the insurance company looking out for my client's interests? The adjuster, consultants, estimators, and engineers an insurance company sends out all receive their paycheck from the insurance company. There is no one in that process advocating for your client to maximize their claim. The PA represents your client's interests the way the insurance company adjuster represents the Insurance Company’s interests. The insurance company is in business to make money. The more they pay in claims, the less profit for them.

My client has an adjuster from the insurance company, why do they need a Public Adjuster? Your client's insurance policy requires them to present and prove their claim. Your client must justify and detail every dollar they expect the insurance company to pay. It is a common misconception that the insurance company adjuster is your client's advocate. He or she is not. Their responsibility is to protect the insurance company. Large claims are complex; there are many acceptable ways to value property. There are also many decisions and calculations involved in determining your claim pay-out. It is not your client's adjuster’s job to maximize the settlement! The PA does this by assembling the claim from your client's vantage point, capturing every dollar possible.

My client has a total loss with replacement coverage, why do they need a Public Adjuster? Commercial and homeowners insurance is not like life insurance. Life insurance pays the policy amount in a claim. In a commercial or homeowner claim, the insurance company does not send your client a check for the amount of coverage just because your client reports a loss. The building claim must be detailed and proven, and there is much that can be disputed. The contents must also be detailed and proper dollar values assigned. To do it right requires expertise and a lot of time. The PA maximizes these dollar values, and frees your client from the burden of detailing the claim.


Things seem to be going great with the insurance company, why does my client need a Public Adjuster? If your client is early in their claim, they are in the “honeymoon” period. Your client may not have run into anything to dispute yet. If your client is later in the claim, they may not recognize that they are entitled to a higher settlement according to the insurance contract. A Public Adjuster, who is representing your client, will push the valuations on property to higher levels wherever possible. Without the expertise in claim settlement issues, your client won’t know if they are leaving a lot of “money on the table.”

My client wants to handle it alone. If your client is not experienced in the intricacies of insurance policies, this could be very expensive “on the job” training! Most people, when they go to court for example, would find it unthinkable not to have an attorney present. Most people have an accountant or CPA handle their tax matters. Insurance claims are every bit as complex. Quite often, not understanding the policy language completely or not applying the coverages properly results in costly errors.

Why is it better to get a Public Adjuster involved at the beginning of the claim process? A PA will control the direction of the claim and develop strategies with your client to maximize their pay-out. If a PA is involved at the beginning, control of the process remains with your client rather than the insurance company. Your client can bring in a PA later in the process, but that is similar to going to trial without a lawyer. Once your client loses, they can bring in a lawyer, but it is a much different situation.

Why can’t my client wait for the insurance company to make an offer and see if there are problems? The fact the insurance company offers your client a large sum of money does not mean you are receiving everything they are entitled to. Most people do not have the knowledge of insurance policies to know if all coverages have been tapped” appropriately. Your client could easily walk away from a large amount of money they didn’t know was theirs.


FAQ's

My client's agent and broker say my client doesn’t need a Public Adjuster and that they will help my client. As much as they may want to help, they have no control over the claims process. Also, they will not conduct the physical inventory assessment for your client that is required. They will not be involved with the building estimate details, business interruption insurance claim or assigning dollar values in any way. They have nothing to do with maximizing your client's claim. Bottom line, when a Public Adjuster is involved, insurance companies pay more in claims.

Won’t a Public Adjuster’s involvement delay the claims process? No, to the contrary, because of the expertise and knowledge a Public Adjuster brings to the process, claims are expedited. Areas of disagreement with the insurance company which are inevitable in larger claims are dealt with efficiently and professionally.

My client has a building contractor, they don’t need a Public Adjuster. Contractors are usually not experts in insurance claim settlements. The Public Adjuster will obtain the largest settlement possible. Your client may then use the contractor of their choice and spend the settlement funds as they choose.

My client's insurance company’s adjuster says they don’t need a Public Adjuster. Nobody likes someone second guessing their work. Public Adjusters typically make the insurance companies pay more. It is not realistic to expect them to welcome a Public Adjuster. Bottom line: The adjuster for the Insurance company will tell your client what they want to pay your client in their claim. PA’s tell the insurance company what the insurance company is obligated to pay. Then the PA fights to make it happen!

How are Public Adjuster’s paid? Public Adjusters are paid on performance. No up-front or hourly fees. The fee is a minimal percent of the claim.

Why choose Globe Midwest-Adjusters International? We are the industry leader with more than 90 years of experience successfully protecting the interests of and significantly increasing settlements for the insured. Expertise includes adjusting corporate multi-million dollar claims as well as family business property claims. Our in-house adjusters have decades of experience within the insurance industry and know how to get results. Our resources also include on-staff building estimators, contents valuation specialists and forensic accountants. We are a team of experts who will level the playing field and achieve excellent results.


FAQ's

Business Owner’s Guide | 16

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