October 19, 2005

I gathered this info today from a State Farm Rep., at one of their satellite information offices. I guess we should publish this? It's really public info! Consult with other interested parties !

Our independent adjuster is Reggie Douglas 1-866-787-8676 at ext. 6308. His last entry into our wind and flood claim stated that he was waiting for Jack Rose to produce:

1) A copy of the Bylaws

2) A breakdown for the electrical & building repairs from the contractor.

He also stated that he would be contacting Jack Rose to enter all units. I understand from a resident that was doing some work in his unit today, that the adjuster would be out tomorrow (Thursday), to enter some units. I certainly hope they are units that have permission from the homeowners.

The representative also explained the procedure from start to finish. Once the repair estimates have been submitted to the adjuster for the interiors and the exteriors, and are acceptable to State Farm, they will cut a check, less the deductibles.

I think it to be very important that we all, or at least an active board, review all repair items on the exterior of the building, and the homeowners review the items that will be addressed on the interior of each unit, before it is submitted to the adjuster.  I think a better plan would be to have 3 estimates for a repair list that is agreed upon by an active board, reviewed and approved by the board, then submit the estimate that would be of most benefit to the association to the adjuster, and work from there.

I think it to be equally important for the homeowners to be present when their unit is entered, so that they'll know first hand what to expect from State Farm, based upon their inspection. This would be an appropriate time to discuss any special concerns, and not rely upon someone else to process your claim to your satisfaction.

According to the State Farm Representative, you are not required to use the on-site contractor for your interior estimates or repairs, and may use your own, providing the required repairs are made. All State Farm is interested in is to come up with a figure that is satisfactory to them. Once this is negotiated, they will provide an estimate of their own to the association (which should be made available to the homeowners), then a check will be disbursed to the association.

This estimate will itemize all the exterior repairs to be done, as well as all the interior repairs, unit by unit. I think to insure to each homeowner that all interior repairs will be completed properly by your neighbor, some form of disbursement to the homeowners needs to be organized by an active board. Each homeowner should receive the estimated amount stated on their State Farm estimate, and not commingled with the exterior repair allowance.

This seems to be the only fair way to do it. Should you decide to use your own contractor, or want to add custom features, of course you'll need to supplement this amount with your own funds, since it appears they will only be allowing for a standard interior, and not crown molding, granite counter tops, etc.

Providing all the exterior repairs stay in budget (+ or -), the remaining balance would then be calculated into a special assessment to the homeowners.

This entire process can be painless for everyone, if you have an active board communicating with the homeowners, and project manager and/ or committee that is able to maximize our claim with State Farm, monitor the quality of work being performed, and keep the contractor and budget balanced.

We all stand to benefit an improved building, with a minimum special assessment, and a higher market value!

Pete Ingrassia