Cooperation between disaster restoration companies and agencies results in quicker resolution and lower claims
By Phil Zinkewicz
What do the United States Pentagon building, a truck full of rotting scallop guts, and a mansion where a corpse had decomposed for three months have in common? On first consideration, it doesn't seem even remotely possible that there could be any connection at all, but the fact of the matter is that all three events have been challenges to a growing industry in the United States--disaster restoration.
The relationship between disaster restoration companies and the insurance industry is a growing one. More and more, insurers are coming to realize that the faster a cleanup effort is begun following a disaster, the more likely that losses will be contained and the better the chances are that the property will be restored as closely as possible to its original state.
The largest restoration company in the United States is ServiceMaster, with a home office in Downers Grove, Illinois, and with ServiceMaster franchises--all highly trained disaster restoration experts--all over the country. There are smaller, regional damage restoration companies as well, such as Fire Restoration Services of New England, based in Norwood, Massachusetts. These companies usually work through agents, the first ones to receive a call when a cleanup is necessary.
In the case of the Pentagon, ServiceMaster was called in shortly after the tragic events of September 11. Jeff C. Coulter, vice president for disaster restoration at ServiceMaster, remembers that day all too well. Rescue efforts, he says, were of paramount importance, but an immediate effort to clean up the huge Pentagon building, which houses the Department of Defense and Armed Forces, ran a close second.
"The call came in to John Nienaber, operations manager for ServiceMaster Clean Network of Springfield, Virginia. The destruction of portions of the Pentagon left Americans with feelings of uncertainty as to their further vulnerability, and the quicker the Pentagon was restored, the less uncertain Americans would feel. That was the most dramatic and the most emotional job we've ever had," Coulter says. "Recently, some of us at ServiceMaster were invited back to the Pentagon for a VIP tour. We met with several Washington, D.C., dignitaries who wanted to thank us for the job we did. The job was finished, but the emotions remain."
Thankfully, disaster restoration companies do not often have to face such situations, and hopefully they never again will. But there are other disasters that we're more accustomed to--hurricanes, floods, fires, windstorms--that speak to the importance of disaster restoration companies. The breadth of ServiceMaster can be seen in the fact that it has 1,400 franchises available 24 hours a day, seven days a week, 52 weeks a year, and has an 800 number for clients. Some 650 of those franchises have been designated Quality Restoration Vendors (QRVs).
"The QRVs are trained restoration professionals who can be on the spot within two to four hours. Time is essential in the restoration of damaged articles, rugs, furniture, etc. If an agent calls us about a claim, often we are on the premises even before the insurance company has been notified. If it is a small job, we go right ahead with the cleanup process. Insurance companies know us and appreciate our efforts to mitigate the loss. If it looks like it's going to be a big job, we go ahead with the emergency work and then provide an estimate to the insurance company on the rest."
Again, insurers have come to recognize that speed is of the essence when it comes to restoration, especially in the area of water damage and potential mold problems. "Insurers are very concerned over the liability issues involving mold," says Coulter. "This has become a growing area for us. Our quick response makes the agent happy because it reflects well on him or her. If all goes well and the cleanup is effected quickly, the client is happy. And, the insurance company can control the loss."
Coulter says that, today, ServiceMaster does everything electronically. "We can report to the insurance agent, the insurance adjuster and the insurance company on a monthly, weekly or even daily basis, if need be. We also provide pictures of every claim so that all the parties involved can keep track of its process."
In terms of expansion plans, Coulter says that ServiceMaster is seeing significant numbers of smaller restoration companies--ones that specialize in carpet cleaning, water damage, etc.--seeking to establish franchises with ServiceMaster. "Also, we're seeing a rising urgency on the commercial side of the business. Commercial establishments are beginning to realize that speedy restoration when an event occurs is essential to cutting costs."
The Fire Restoration Services of New England (FRSNE) is not a national disaster restoration organization. Its clientele is primarily in Massachusetts, Rhode Island and southern New Hampshire, although it has been called on projects as far as Washington, D.C. According to FRSNE's president, Jim Barrett, the firm started up in 1968 primarily as a residential and commercial cleanup operation. "We had a client that had an oil burning problem, which is called 'puff back,'" says Barrett. "Now, cleaning up smoke residue is a very specialized skill and we found that we were very limited as to what we could do. So, we lost the business and realized that we were in need of education. We found an organization called the National Institute of Disaster Restoration."
Not only did Barrett join the Institute, he and his colleagues also worked diligently to bring themselves up to date on the latest techniques in disaster restoration. In fact, Barrett himself became president of the Institute in 1977. "We became specialists in fabric restoration, wood specialties and mold remediation. We received our education from the experts at the Institute. Today, we are experts in all these areas and more, and we market to insurance companies, agents and insurance adjusters."
Barrett says that last year's "weird weather--particularly the frigid winter that caused ice to swell on roofs across eastern Massachusetts and southern New Hampshire--made 2003 the company's busiest ever. When called promptly, the firm can remove water and dry out basements, carpets, floorboards and wallboards, preventing mold growth and saving insurance companies and home owners from headaches and potential health problems.
"Insurers now realize that mold prevention is a lot less expensive than remediation," says Barrett, echoing Coulter's assessment. "Insurers and agents are becoming more proactive and want us to get involved in the early stages."
The company handles everything related to fire and water damage, restoring building interiors and exteriors, and contents such as furniture, rugs, books, computers and consumer electronics. It has worked on commercial jobs such as the post-fire restoration of the John F. Kennedy birthplace in Brookline, Massachusetts, universities, schools, hotels and retailers and commercial contractors.
The "decomposed corpse" referred to above was, in his words, the "most malodorous thing" he ever encountered. Says Barrett: "The man lived in a big house in Wellesley, Massachusetts, where he apparently subsisted on a diet of eggs and vodka until his demise," recalls Barrett. The landscaping service kept the grounds tidy and no one noticed anything until a mailman got a whiff through the mail slot. "We dubbed him 'Mister Popularity' because no one noticed he was missing for three months."
The scallop attack was the only stench that ever defeated FRSNE, according to Barrett. "A scallop boat crewman got even with his captain by dumping a bushel of scallops into the captain's pickup truck and letting the mess marinate in the summer sun," says Barrett. "He knew what he was doing. We just couldn't get the smell out completely."
FRSNE's service, like ServiceMaster, is available 24/7 and it also has an 800 number.
Agents are quick to provide kudos to both ServiceMaster and FRSNE. Brian Dooney, president of the Portland, Oregon-based Leonard Adams Co., says that his agency has had a relationship with ServiceMaster since the late 1960s. "This is a remediation company that is well recognized in the insurance industry. We can call ServiceMaster in for initial cleanup without first having to notify the insurance company immediately after we have been informed a loss has occurred. And, as ServiceMaster will tell you, time is of the essence."
Nick Argeros, president of the Argeros Insurance Agency in Massachusetts and president of allMass Group, a network of independent insurance agents in the Bay State, has had a relationship with FRSNE for a long time. "Jim Barrett is the best in the business. His guys are real pros. They're able to get the job done and get it done swiftly. That's good for our insurers and for our clients." *
For more information:
ServiceMaster
Phone: (800) RESPOND
Fire Restoration Services of New England (FRSNE)
Phone: (800) 649-5080