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INDUSTRY NEWS

"Family Wins Record Settlement Over Toxic Mold"
"Rubber Offers Life Cycle Advantages"
"Government Grant Helps Clean Contaminated Site"
"What to Do When Disaster Strikes"
"Invisible Threat"
"Family Business Benefits From Bringing in 'Outsiders'"
"Second Man Sentenced for Defrauding Disaster Relief Agencies"
"Strategic Focus 2005-2006"
"Companies Boost Capital in Anticipation of Price Hikes"
"Mold a Threat After Hurricane Rita"
"Reinsurance Brokers Reorganize, Recruit Amid Market Changes"
"Reinsurers Buffer Katrina Costs"
"Nature Fuels Building, Restoration Project"
"Health Questions About Mold, Air Hang Over Arts Magnet Site"
"Rita Seen Costing U.S. Insurers $4.7 Billion"
"Fighting for TRIA"
"Storm Victims Ask: Where's the Money?"
"Reinsurers' Earnings Are Blown Away by Hurricanes"

RIA NEWS

Breaking News

RIA Endorses Disaster Legislation

RIA’s Executive Committee has endorsed two bills introduced in September that provide certain protections to restoration contractors and others working in disaster recovery. HR 3717, the Good Samaritan Protection for Construction Volunteers Act introduced 9/8/2005 by Rep. Reichert (R-WA), provides construction and restoration contractors with qualified immunity from liability for negligence when providing services or equipment on a volunteer basis in response to a declared emergency or disaster. The bill has been under development since before Hurricane Katrina struck in order to provide some necessary immunity to companies and their personnel working without compensation to save lives and property.

The second bill, S 1761, the Gulf Coast Recovery Act introduced 9/22/2005 by Sen. Thune (R-SD), which clarifies and limits liability of government contractors assisting in rescue, recovery, repair, and reconstruction work in the Gulf Coast region of the United States affected by Hurricane Katrina or areas of other major disasters. Coverage extends to contractors working on projects supervised by the Army, EPA, or USDOT. While Congress is expected to move quickly to pass this legislation, Thune is quick to stress that it will not protect contractors who engage in reckless behavior or willful misconduct.

Full text of the bills can be found at http://thomas.loc.gov/.
 
Catastrophe Task Force Update
 
Two months ago, RIA President Bill Lakin formed a catastrophe task force to identify how RIA’s particular expertise could be best put to use following an extraordinary hurricane season. Since then, the task force has developed a series of materials for contractors and homeowners affected by the recent hurricanes: Do-it-Yourself Tips for Flood Repair, Hurricane Preparation Tips and Contractor Orientation to Catastrophic Disaster Work. These documents can be accessed through the RIA website at http://www.RIA.org/referrals/clearinghouse.cfm. Other materials in development will address the issues associated with brush fires and earthquakes.

RIA members contributed more than $5000 to the Red Cross for victims of Hurricane Katrina. Others volunteered their time and services to help with some of the clean up and assessment efforts currently underway.

Several RIA members were recently interviewed on CNN for two stories. Jay Summer of Disaster Plus provided hurricane evacuation and preparation tips prior to Hurricane Rita. Rusty Amarante, CR, of Belfor was part of a team assessing the damage by Hurricane Katrina to a home belonging to one of CNN’s executives.

Toolbox Tips
Marketing Savvy
Solutions Update

Toolbox Tips

Best practices for the restoration professional

Cleaning Smoke Damaged Wood Furniture

Contributed by Cliff Zlotnik, CR, WLS, CMH

The information presented is based on more than 30 years of hands-on experience in the industry. Despite the improvements in equipment and knowledge during the past decades, sometimes the traditional methods are still the most effective.

Smoke residue removal

Exterior light-to-moderate smoke damage
 
Most smoke-damaged wood can be cleaned with detergent and water. Contrary to first inclination, in most situations we are not cleaning the wood, but are actually cleaning coatings such as polyurethane, varnish, lacquer or shellac, which have been applied to the wood for aesthetic or protective purposes. Although water-based degreasing solutions are effective at removing smoke damage from wood, degreasers can damage shellac finishes found on many antiques. Be safe not sorry by having your cleaning technicians follow these recommendations:

Light to moderate smoke damage can be quickly and easily removed from finished wood furniture by using a dilute solution of neutral cleaner and water soluble smoke odor counteractant. The trade secret isn’t the cleaning solution, but the recommended delivery system which is 0000 (finest grade) steel wool. Steel wool is costly and can be salvaged for reuse by rinsing it out at the end of the shift and storing overnight in a bucket submersed in clear water.

Exterior heavy smoke damage

In situations where the wet cleaning process isn’t totally effective, a wood restoration gel applied with 0000 steel wool will often yield satisfactory results. As wood restoration gels leave a greasy residue behind, removing the residue with a dilute neutral cleaner is advised prior to polishing. Wood restoration gel and steel wood is an effective method of removing the visible soil buildup around the handles of kitchen cabinets.

Sometimes dirtyunfinished wood just needs a bath. Wet washing is an effective way toremove smoke residue from unfinished wood such as the interior ofdrawers, cabinets, etc. First, pre-spray wood with a diluted degreasersolution. Then, agitate a dilute neutral cleaner/deodorizer solutioninto the wood with a naturalsponge or soft paintbrush. Use a low pressure, clear water rinse and then force air dry. 

Cliff Zlotnik, CR, WLS, CMH, is the president of Unsmoke.
 

Marketing Savvy

Communications & Sales Information

Take Every Complaint Seriously

The next time you handle a customer complaint, imagine that the complaint is going to be printed on a gigantic billboard for all to see. You’d probably take the complaint seriously and do everything within your power to resolve it, right?

In many ways, dissatisfied customers are like billboards, sending out a negative message about your organization. Customers often tell as many as 20 other people about the poor service they received. That kind of negative word-of-mouth can cost your organization thousands of dollars.

So the next time a customer comes to you with a problem, create the kind of solution that you would be proud to see plastered on a billboard.

From the editors of Communication Briefings, www.briefings.com.  

The Four C’s of Communication 

Be more productive and improve your work relationships by mastering the four C’s of communication.

1. Contact. There’s a good reason companies send people great distances to meet potential clients, even though salespeople could just as easily communicate with them by e-mail, telephone and teleconferencing. The reason: You relate better to people when you meet them face to face. You can read body language and feel the energy that connection creates.  
2. Commonality. People feel loyal to you only when you find some common ground with them. Get to know the people you work with by looking for personal experiences or interests you share.
   Example: Ask them about their families, what they enjoy doing in their spare time, where they vacation and whether they have any pets. You’ll soon see your co-workers as complex people, not just computer programmers, salespeople or administrative assistants.
3. Consistency. Being consistent builds trust. You create consistency when you match your words with your tone of voice and your body language.
   Example: When you say, “That’s a great idea!” with a smile and excitement in your voice, you have a stronger impact because you’re consistent in your message. If you say the same phrase with sarcasm and a frown, your message is mixed and will come across as critical and ridiculing.
4. Clarity. Don’t assume people understand everything you say. It’s your responsibility to make sure. Ask: “Did I explain that clearly?” or “Do you have any questions?”

Adapted from “Improving Your Workplace Communication,” Harriet Meyerson, www.confidencecenter.com . 

Solutions Heads to Savannah

The 61st Annual RIA Convention and Exhibition – Solutions – will be held in the historic city of Savannah, GA, from March 14-17, 2006, at the Westin Savannah Harbor Golf Resort and Spa. Savannah hosts one of the largest St. Patrick’s Day celebrations in the nation, so it’s imperative that RIA members make their hotel reservations early. Once the hotel rooms are filled, it will be difficult to find other accommodations in the city. The Westin has set up a special link on their website for RIA guests to register: Association Specialists in Cleaning & Restoration. The room rate is $199 plus a daily resort fee. Reservations can also be made by calling (912) 201-2000.

This year’s keynote speaker is the dynamic Chip Bell, who will reveal what it takes to create passionately devoted customers. The author of 16 books on delivering extraordinary services, Bell understands the challenges and value of constantly providing outstanding customer support. Bell will help you to see your organization as your customers do…through your employees. And he’ll show you how to provide the service leadership your employees expect. Bell uses humor, research and cutting-edge ideas to illustrate how you can achieve and deliver consistent, unforgettable, magnetic service.

RIA members will also notice a number of exciting changes at the convention beginning with the opening night festivities. This year’s welcome reception will be sponsored by several RIA members and offers you the opportunity to mix and mingle with clients, visit with friends and network with colleagues. There will be a few surprises you won’t want to miss and the evening is guaranteed to put you in a festive mood for St. Patrick’s Day. Vendors interested in co-sponsoring the event should contact RIA’s executive director, Don Manger, at 1-800-272-7012 or  donaldm@RIA.org.

Watch this column for future updates on Solutions.

For more information, visit http://www.RIA.org/programs/conference06/index.cfm.

Meet NewsBreak's Editorial Advisors
Bright Ideas
Product Spotlight
On Press Now

Meet NewsBreak’s Editorial Advisors

The Roman philosopher Gaius Crispus said that “success comes through vigilance, energy and wise counsel,” so RIA has invited some of the top professionals in the industry to serve on the NewsBreak editorial board. Their job – to help keep you on the cutting edge by being RIA’s eyes and ears on the world. They come from different specialties, companies and continents, and RIA appreciates their willingness to share their expertise.

Ellen Amirkhan, CRS, Oriental Rug  Cleaning Company, Inc.
Charles Cassani, CR, Steamatic of Sacramento, Inc.
Pete Consigli, CR, G. Pete Consigli Group
Ross Driscoll, CR, Driscoll & Driscoll
Ashley Easterby, Network Group Pty Ltd.
Michael Hosto, CR, 1-800 BOARDUP
Tony Legenstein, CRS, Certified Carpet
Alex Lozecki, Sr., WLS, CDT International CAT, Inc.
Wade Miller, CR, Mitigation Services, Inc.
Michael Pinto, CMP, Wonder Makers Environmental, Inc.
Phillip Rosebrook, Jr., CR, Business Mentors
William Weber, II, CR, Four Star Cleaning & Restoration

Bright Ideas

It’s so important to say thank you – especially to customers. RIA wants to know how its members say “thank you” to clients and associates (annually, around the holidays or any time). The best idea (as determined by an esteemed panel of judges) will receive a $25 gift certificate good towards any future RIA product, course or conference.

The best ideas will be published in this column next month, and NewsBreak will ask members to share their expertise on another area of service.

Send submissions of 100 words or less to: NewsBreak@RIA.org with the words “Bright Idea” on the subject line by Monday, December 5th.

Product Spotlight

Display your company’s professionalism for everyone to see. RIA has logo decals for vehicles and insignia patches for uniforms. Click here for more information… http://www.RIA.org/resourcelibrary/marmaterials.cfm#marketing.

Customers appreciate a little education on the services being provided. RIA’s Consumer Flyers are the perfect “leave behind” to explain possible problems and solutions. They cover everything from animal stains to yellowing, and everything in between. Follow this link to see more… http://www.RIA.org/resourcelibrary/marmaterials.cfm#brochures.

On Press Now

Here’s a preview of what’s coming up in the December issue of Cleaning & Restoration:

Legal Risk Management: Weathering the Day-to-Day Storms

Each owner wants to build a secure business, and part of that stability comes from developing a comprehensive risk management program. Legal protection is one aspect, and with proper planning, the legal system can be a safeguard and provide a competitive advantage for you and your company.

The Southern Hospitality of Savannah Welcomes Solutions®

From the Victorian-lined avenues to the boutiques of River Street, the charm of Savannah is irresistible, and RIA members will be gathering there in March 2006 for the 61st Annual Convention and Exhibition. In addition to attending the information-packed sessions, visitors will want to experience some of the history, adventure and food that Savannah has to offer.

RIA’s Restoration Conference Recap: Weathering the Storms – Part 1

For today’s restoration firms, weathering the storm involves a lot more than just surviving the latest hurricane. It means making the leap from a good firm to a great one, and several companies share their secrets for success.

Not a subscriber? Then click here to order your subscription to RIA’s monthly, award-winning technical journal https://www.RIA.org/commerce/crmag_subscription.cfm.

INDUSTRY NEWS

"Family Wins Record Settlement Over Toxic Mold"
MSNBC (11/04/05)

The Gorman family of Manhattan Beach, Calif., has reached a $22.6 million settlement with Crenshaw Lumber Co. Inc., a sheet metal company, and 15 other defendants regarding the exposure of their child to toxic mold and resulting brain damage. According to the case, their beach home was built from mold-infected framing studs in 1999. Crenshaw Lumber agreed to settle after Los Angeles Superior Court Judge Victoria G. Chaney prohibited 10 of the firm's 17 witnesses, including a toxicologist and microbiologist, from testifying. The firm is expected to pay $13 million of the settlement. None of the defendants in the case have admitted liability in the matter. Legal experts have called the settlement one of the largest in the U.S. for a single-family home mold case.
(Web Link)
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"Rubber Offers Life Cycle Advantages"
Floor Covering News (11/07/05)

Rubber flooring is not only durable, flexible, and easily maintained, but experts also note that it is versatile in terms of coloring, textures, and patterns for healthcare, corporate, and educational settings. Dodge-Regupol, a maker of ECOsurfaces commercial flooring, notes that most clients tire of the coloring of their rubber floors before the surface actually wears out. An added appeal is that maintenance usually implies just mopping or vacuuming. While initial costs of rubber flooring are higher than other types of surfaces, life cycle costs make the choice the least expensive over the long-term, notes Freudenberg Building Systems President Dennis Schmick. However, some firms note that not all rubbers are created equally and longevity is dependent upon the heat and pressure used to mold the flooring, though most rubber lasts upwards of 20 years. Johnsonite Marketing Specialist Rachel Tipton notes, "rubber flooring is durable, more comfortable under foot and is also slip resistant. It can even lower insurance premiums and save money in the long run."
(Web Link)
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"Government Grant Helps Clean Contaminated Site"
Real Estate Weekly (11/12/05) Vol. 52, No. 9, P. 44

TVGA Consultants is taking a lead role in the securing of state funding for the clean-up of environmental contamination at an industrial site in Dunkirk, N.Y. TVGA officials are seeking $1.9 million for cleaning up the former Roblin Steel complex, which has been abandoned and vacant for almost 20 years. Chautauqua County acquired the site via tax foreclosure near the end of 2001 and has since declared it one of its top priority brownfield redevelopment sites. The $1.9 million award will be in addition to the $335,000 in federal and state grants previously obtained for the investigation of the inactive industrial park and the subsequent remedial design plan. Officials report that the remediation will be a major boon to the area's economy, especially in terms of job creation and tax revenues. The project will include removal of contaminated sediment from interior building sumps and catch basins, removal of asbestos from within the existing structure, and installation of a sub-stab ventilation system for the existing building. Additionally, there will be an environmental easement established to safeguard the integrity of the remediation effort.
(Web Link)
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"What to Do When Disaster Strikes"
Wisconsin State Journal (11/01/05) P. 41; Morrill, Debra

Restoration firms work with business owners and insurance firms to clean up after disasters such as floods, storms, and fires. Insurance agencies keep preferred vendor lists, and certain phone directories have listings for "fire and water damage restoration." Since they answer the phone every day around-the-clock, the majority of restoration firms can arrive at the scene within two hours, depending on the disaster's location. Their initial goal is to prevent any more damage from occurring. This could include boarding up windows or finding the source of a water leak and stopping it, according to Crystal Salzman of First General Services in Madison, Wis. The next priority is to fix damage as soon as possible to get the company back in operation with the minimum amount of downtime. Restoration firms employ equipment that other companies usually do not have on their premises, such as big commercial ventilators and extractors and infrared cameras to locate concealed water leaks. The majority of the firms also handle any needed rebuilding following fires, from carpentry, roofing, and drywall repair to painting, wallpapering, and carpet installation.
(Web Link)
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"Invisible Threat"
Albuquerque Tribune (11/01/05) P. A1; Shepard, Maggie

With the passage of the Clandestine Drug Remediation ordinance, Albuquerque became the first city in New Mexico with a law intended to protect potential renters and home buyers from the toxins left behind by a meth lab. Under the ordinance, deeds must note the presence of a drug lab or contain a certificate of decontamination, and city police building-violation inspectors put a lien on the home if a property owner does not clean up the property. Inspector Joe Martinez, who drafted the ordinance last year, notes however that not every lab has been found since the ordinance went into effect, and he points out that people can get homes checked for the presence of a lab and make the contract contingent on it. The city ordinance holds the property owner responsible for cleanup costs, which have recently run between $3,000 and $12,000, according to Maggie Borrego of the disaster restoration company Servpro. "If there is carpet and padding, it has to go," she says, adding, "If there is drywall, that may be something else, too." In addition to the cleanup cost, there is the cost of having a certified environmental hygienist company test surfaces and crevices for chemical residue--something that costs between $750 and $3,700, according to hygienist Ron Betthe of the company RLB, CIH.
(Web Link)
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"Family Business Benefits From Bringing in 'Outsiders'"
St. Louis Post-Dispatch (11/04/05) P. B10; Dalin, Shera

Although ending the management era of a family business by retaining outsiders can be hard for the owner, when done correctly, says St. Louis University's Jefferson Smurfit Center for Entrepreneurial Studies director Kevin Schulte, it can help fill skill gaps for coming generations. The transition from family-owned to outside management has improved carpet cleaning company Woodard Cleaning & Restoration Services of Rock Hill, Mo. While the company is still controlled by chairman and CEO Charlie Woodard, son of founder Earl and Nancy Woodard, Charlie Woodard decided last year that the business required outside management to assist his leadership. He established a "presidential team" with Debbie Bogar as CFO, Ann Bueler as vice president of business development, and Scott VanDover as vice president of restoration operations. Charlie Woodard says he made the decision because the company did not have a core competency with marketing and sales, and Bueler notes that his decision means that the company moved from a typical hierarchal structure to a highly team-based one. Revenue is predicted to increase to $10.5 million in 2005, up from $10 million in 2004. Schulte believes that an important concern for any family-run business is who will take over when something happens to the owner. Around 60 percent of family-owned companies do not survive past the first generation, and around 12 percent do not survive beyond the second generation.
(Web Link)
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"Second Man Sentenced for Defrauding Disaster Relief Agencies"
Duluth News Tribune (MN) (11/02/05)

A second man associated with the now-defunct disaster recovery and cleaning company Kieger Enterprises has been sentenced for taking part in a scheme to defraud disaster relief agencies by exaggerating and inflating the amount of cleanup and recovery work the company performed. Edward Kieger Jr., owner of the defunct Minnesota company, was sentenced to three and a half years in prison and ordered to pay $1.2 million in restitution along with the company and other defendants. Kieger pleaded guilty in April to charges of racketeering, conspiracy, and obstruction of justice related to the scheme, which reportedly scammed money from disaster relief efforts related to flooding in Minnesota in 2000, a tornado in Wisconsin in 2001, and the World Trade Center attack in September 2001, among other disasters. Kieger Enterprises' former general manager Patrick Iwan was sentenced to nine years in prison and ordered to pay the restitution last month, while another Kieger Enterprises employee, former Target national roofing manager David Poindexter, was sentenced to a year in jail for mail fraud; two others have also pleaded guilty and are awaiting sentencing.
(Web Link)
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"Strategic Focus 2005-2006"
Post Magazine & Insurance Weekly (UK) (11/03/05) P. 16

The U.K. restoration and recovery industry must do a better job of educating insurers and self-insured companies on restoration as a viable option for damage management. Although the industry saves the insurance companies millions of pounds every year on domestic and commercial claims, replacement remains the solution for approximately 60 percent of claims. In most cases, restoration companies can fully restore buildings and equipment at a fraction of the cost of replacement, and do so in less time. The insurer of Lufthansa chose restoration as the solution when fire damaged its engine repair center in Shannon, and was able to save several million Euros in replacement and BI costs as a result. And restoration can be just as beneficial in household situations involving structures, decorations, furnishings, and electrical systems. The British Damage Management Association has worked to promote restoration, and the industry can support its efforts by making more of a commitment to training, and research and development involving new restoration techniques. Moreover, restoration companies will need to provide good service to gain further business.
(Web Link)
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"Companies Boost Capital in Anticipation of Price Hikes"
Business Insurance (11/07/05) Vol. 39, No. 45, P. 22; Veysey, Sarah

Bermuda insurance and reinsurance firms scrambled to raise new capital in the wake of Hurricane Katrina and other storms, and now after quick business plan reassessments these firms are now poised to take advantage of potential premium hikes across several business lines. Moreover, these insurance groups are well positioned as more and more investors indicate that they are willing to provide capital to the market; Amlin P.L.C. is just one firm establishing a new reinsurance firm in Bermuda with $1 billion in capacity. Experts also point out that established insurers and reinsurance firms in the market are also ramping up their capacity in order to take advantage of the expected premium hikes in the catastrophe market and other business lines, even if that means shifting their focus from primary coverage to reinsurance. Aspen Insurance Holdings Ltd. CEO Chris O'Kane notes that premium increases in property reinsurance could be anywhere between 50 percent to 100 percent for U.S.-based risks and higher for catastrophe-exposed businesses. On the other hand, single line businesses, could consolidate or expand their portfolios if rating agencies begin requiring insurers to increase their capital holdings. Moreover, experts see insurers clarifying their policies and terms in the wake of the recent catastrophes, with further restrictions on sublimits.
(Web Link)
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"Mold a Threat After Hurricane Rita"
Insurance Journal (10/19/05)

The Federal Emergency Management Agency (FEMA) has issued recommendations for treating mold problems caused by severe flooding from Hurricane Rita. FEMA advises homeowners to make sure the electricity is turned off and to wear dust masks and gloves while cleaning. Homeowners should also identify and remove any moist objects, dry any damp materials, and remove and dispose of items contaminated by mold. People should also clean non-porous or semi-porous items and disinfect molded surfaces with bleach and water solution.

Homeowners can lower the incidence of mold growth by lowering the temperature and ventilating bath and cooking areas. Mold can cause respiratory distress, nasal and sinus congestion, and skin irritation, among other effects.
(Web Link)
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"Reinsurance Brokers Reorganize, Recruit Amid Market Changes"
Business Insurance (10/24/05) Cockburn, Barbara; Hofmann, Mark A.; Souter, Gavin

Reinsurance brokers are recruiting more workers and expanding their scope in light of recent market changes. Many more brokers are jumping ship to competitors as well, and new divisions to deal with energy, marine, agribusiness, and other risks are opening up. Towers Perrin Reinsurance hired away several workers from Gallagher Re, Guy Carpenter, and American Re Broker Market, while Jardine Lloyd Thompson P.L.C. opted to create a new reinsurance business called JLT Re, after separating the unit from JLT Risk Solutions. Meanwhile, Cooper Gay Holdings Ltd. noted that it will increase the size of its reinsurance operations in 2006, opening offices in New York, Brazil, Moscow, Minsk, and Belarus.
(Web Link)
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"Reinsurers Buffer Katrina Costs"
Bermuda Insurance Update (Quarter 4, 2005) Vol. 5, P. 3

The $40 billion in hurricane losses are likely to steer industry eyes toward Bermuda once again as a source for additional capital and coverage. IPC Re President James Bryce notes that the Bermuda reinsurance market is a shock absorber for the rest of the global insurance market. Bermuda reinsurers are likely to be on the hook for at least $6 billion in relation to hurricane losses, but the market prepared itself by lining up additional capital. Although many are predicting an economic downturn in the areas hit by the hurricanes, analysts note that economic activity will soon heat up as businesses, homeowners, and others rebuild. Catastrophe modeling, according to experts, is just one tool that has improved the ability of the Bermuda reinsurance market to absorb losses, especially after the 2004 hurricane season highlighted the possibility that more than one storm could hit a particular area. However, these models also do not include flooding in their calculations, which generally has been the purview of country governments to absorb, but flooding could be another liability for insurers in the future if critics can get legislation passed to require insurers to cover those losses as well.
(Web Link)
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"Nature Fuels Building, Restoration Project"
Riverside Press-Enterprise (CA) (10/22/05) Burghart, Tara

Designed by Frank Lloyd Wright, the 97-year-old Unity Temple in Oak Brook, Ill., was experimental in every way at the time--including not just a bold, tradition-breaking cubic design but also an early version of electric forced-air heating. Unfortunately, the heating experiment was a failure, and years of exposure to Illinois' freeze-thaw winter cycle has left the structure itself cracked and in need of repair. As part of the restoration of the building, the Unity Temple Restoration Foundation wants to install a new geothermal heating system that is in keeping with the original experimental tone of the building. "I really believe Mr. Wright would approve of this," says the foundation's executive director, Keith Bringe. "He was the father of organic architecture -- the whole idea of buildings fitting into the landscape. One of his greatest inspirations was nature. So he'd favor technology that complemented the environment instead of working against it." Supporters of geothermal technology say that while the up-front cost of geothermal heating is higher than for a traditional furnace and air conditioning unit, they cost less to operate and are also all but silent and invisible. The Unity Temple's system is to consist of about 26 wells, which will be covered and will be invisible after the grass goes back. Heat from the earth will be transferred to the building via an underground pipe system in the winter, while the pipes will draw the heat out of the temple and discharge it into the ground in the summer.
(Web Link)
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"Health Questions About Mold, Air Hang Over Arts Magnet Site"
Dallas Morning News (10/31/05) P. 1A; Fischer, Kent

The Dallas Independent School District is undertaking a $699,000 renovation of the Nolan Estes Educational Plaza, which will be used to house students from Booker T. Washington High School for the Performing and Visual Arts during the two years that their campus is being remodeled and expanded. However, parents oppose the use of Nolan Estes because of past problems with mold, which they insist cannot be remedied without putting a great deal of time and money into the project. Employees of Nolan Estes--which was converted from a shopping mall to administrative offices--insist that their complaints of bad air quality, mold, watery eyes, allergies, headaches, and sinus infections were largely ignored. Records kept by the school district show that the roof and the air-conditioning system were not repaired, but new ceiling tiles, clean air-conditioning filters, and other quick repairs were made instead. A consultant hired by the school district in 2002 found over $3.6 million in so-called "critical deficiencies," but district deputy superintendent Ron Peace says extensive renovations will not be made because the building will only be occupied for a short time. Additionally, the district decided not to follow the consultant's advice that tests be conducted to see if mold is located between the walls and floors, as the renovation plans call for the walls to be torn down.
(Web Link)
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"Rita Seen Costing U.S. Insurers $4.7 Billion"
Business Insurance (11/01/05)

The Insurance Services Office (ISO) reports that U.S. insurers could be on the hook for $4.7 billion in claims related to Hurricane Rita, and over 50 percent of that claims estimate is expected to come from Louisiana. Texas is expected to account for $2.2 billion of the expected claims. Insurers have already received over 400,000 claims from policyholders on the Gulf Coast since late September when the storms began hitting the coast. Rebuilding in the region, according to ISO, could be hindered by the disbursement of construction-industry workers as a result of the recent hurricane season, high material expenses, and increasing labor costs.
(Web Link)
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"Fighting for TRIA"
Business Insurance (10/24/05) Winston, Paul D.

As the deadline for expiration of the Terrorism Risk Insurance Act (TRIA) draws nearer, it is increasingly uncertain whether Congress will be able to pass a bill renewing it in time. While a number of other crucial legislative items have consumed the agenda, Congress's lack of action is at least partly the fault of those who would most benefit from TRIA renewal yet have put little pressure on lawmakers to come up with a plan. Top executives of many companies have a great interest in ensuring that their insurance companies will be able to cover their losses in the event of a terrorist attack, while individual employees need to worry about their jobs and risk management strategies to protect businesses from terrorist attacks that could deplete urban economies.

Nevertheless, many of these interested parties stopped speaking out on the issue shortly after the post-Sept. 11 media frenzy died down. As a result, Congress has been distracted by too many other policy issues for TRIA to become a top priority. However, if affected businesses start to speak out now, legislators may feel more pressure to pass an effective renewal of a badly needed policy.
(Web Link)
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"Storm Victims Ask: Where's the Money?"
Newsday (11/04/05)

Even those policyholders who quickly filed claims with their insurance companies are finding that their claims checks are slow to appear. Some have only received an advance for living expenses, even though their damaged properties have already been inspected and assessed. Rebuilding on the coasts has been delayed as these policyholders wait for insurers' responses, which many note have been few. Those dealing with the Louisiana Citizens Property Insurance Corp., a state-run insurer for homeowners in high-risk areas, are having a harder time since the insurer does not have enough adjusters, is forced to seek further funds from insurers, and is attempting to sell bonds to raise enough cash for the claims that have poured in over recent months. Some policyholders have driven hours away from their homes just to obtain a living expenses advance, only to wait several more weeks before an adjuster is sent to inspect their property. Adjusters, who have signed onto the task at hand, work 15 to 16 hour days and are commuting long distances, since many of the hotels in the area are already booked or destroyed. Meanwhile, policyholders who have lost their entire lives are asked to have patience and wait until insurers can get to their claims.
(Web Link)
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"Reinsurers' Earnings Are Blown Away by Hurricanes"
Scotsman (UK) (11/03/05) McArthur, Alistair

Swiss Reinsurance and Hannover Re reported recently that the hurricanes hitting the Gulf of Mexico region would adversely affect their earnings statements. Swiss Re plans to use some of its equalization reserves to cover the 425 million pounds in losses expected from hurricanes Rita and Wilma, while Hannover Re continues to assess its potential losses. Hannover is not expected to release its revised third-quarter earnings until November 10, but it remained hopeful that it would reach its net profit target for 2006. Net costs for the entire reinsurance sector are expected to rise as a result of the hurricanes. However, analysts are awaiting word from Munich Re, which continues to remain silent on the matter.
(Web Link)
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© Copyright 2005 INFORMATION, INC.
Masthead photos courtesy of VanDam & Krusinga and Insurance Restoration Services.