Drought-Related Conditions Pose Potential Problems for Property Members
By Allison Kaminsky
Severe drought conditions are causing soil shrinkage across the state. Soil shrinking can lead to foundation shifting, causing cracks in floors and ceilings. In some extreme conditions, bathroom fixtures have separated from walls and underground plumbing has cracked. Although members in the western regions of Texas are all too familiar with drought-related damages, the current dry climate is affecting members in regions that have never experienced these complications before. The result is a number of structure settling claims being filed, and these numbers are anticipated to grow.
TASB is prepared to respond to all property claims and investigate the causes of the damages involved. However, in line with industry standards, the Fund’s property coverage does not cover damage resulting from earth movement or faulty workmanship. This extends to losses resulting from soil shrinking and settling.
TASB is prepared to respond to all property claims and investigate the causes of the damages involved.
TASB Loss Prevention consultants are being trained to assist with the investigation of these claims. When property losses such as these are reported, the member’s Loss Prevention consultant will make a site visit and conduct the initial investigation to determine the cause of the damage. The documentation will be brought back to the TASB Property and Liability Claims Administration division for coverage review and determination.
If the damage is the result of earth movement associated with drought conditions, the claim is not payable. However, the member has the opportunity to demonstrate the cause of the damage is related to a covered loss (i.e. high wind, tornado, etc.). The member can use various avenues to do this, including the contracting of a structural engineer to make an assessment.
If you have any questions about drought claims or your property coverage, please contact your marketing consultant. You can also call TASB Risk Management Services at 800.482.7276.
