Hailstorm part 1 - May 11 '06

Fixing to wait

Thousands of houses and cars still bear scars a month after a hailstorm battered Central Indiana. The lines for repair work could stretch for months.

BY TOM SPALDING TOM.SPALDING@INDYSTAR.COM

Four weeks after the Good Friday hailstorm, Central Indiana residents are being told it could be months before their damaged cars and homes can be repaired.

One auto body shop is so swamped it has a team of workers from Brazil doing hail-related repairs. The work in some shops is being scheduled as far out as July and August.

Roofers and businesses repairing siding and windows also report record traffic stemming from the April 14 storm.

Property and casualty insurers have reported more than 40,000 claims statewide, according to Marty Wood of the Insurance Institute of Indiana. More than 75 percent of those claims are from Central Indiana.

Stuart Lowry, whose century-old Indianapolis home was tattooed during the hailstorm, is feeling lucky despite his daunting repair list: gutters, windows, and every shingle on his roof. His preliminary bill: $15,000.

"I feel pretty good about the fact that we have got people coming -- pretty soon," said Lowry.

But when might those repairs be complete? He doesn't know. Lowry thinks it might not happen until the fall.

"It's the worst I've ever seen," said Andy Roseboom, an Avon-based contractor. "Everybody is saying the same thing. I probably have 100 roofs to do right now. Normally I'd only have 20."

"We're scheduled all the way to the first week of July, and we're still taking quite a few (requests) a day," said Donnie Moorehouse of Moorehouse Body Shop on Troy Avenue.

Even people who have received insurance checks are finding they have to schedule repairs two or three months out. In some cases, damage appraisers are setting up appointments on Sundays to meet the workload.

State Farm Insurance still has a significant backlog of homeowner claims, said spokeswoman Missy Lundberg. State Farm insures about one in five homes and one in four cars in Indiana.

Of the 14,500 hail-related claims it received from Indiana, State Farm has cleared 5,000 for repairs.

During the storm, trained spotters and other weather observers reported hail ranging from pea-sized to as large as golf balls and chicken eggs.

Two-inch hailstones pierced automobile windshields and cracked vinyl siding on buildings near 71st Street West and Georgetown Road; 13/4-inch stones were reported near Camby and Beech Grove.

Because hail events are not measured like rain or floods by the National Weather Service, it is hard to put the storm into historical perspective.

"It's not uncommon to see hail," said Mike Shartran, data acquisition program manager at the National Weather Service. "But to see strong storms that produce golf- and baseball-size hail, that is not a common occurrence."

Hoosiers in the auto and home repair businesses say the hail damage is rivaled only by storms in 1996 and 1989.

About 375 vehicles on the Honda West lot on West 38th Street near I-65 needed minor repairs to remove small dents; 400 vehicles at Family Buick Mitsubishi near North Shadeland Avenue and I-465 also needed touch-ups.

"What was unusual in this case was it was a wider path and it hit a lot of consumers," said Scot Davis, CEO and owner of Family.

According to the Indiana attorney general's office, state law says auto dealers must disclose a vehicle's hail damage to customers if the damage exceeds 4 percent of the vehicle's price.

Policyholders have to weigh the price of repair. There are out-of-pocket expenses as well as deductibles and the possibility of rising insurance premiums.

Linda Lee is, perhaps, like countless other storm victims -- unsure of her next step.

Lee, 66, who lives in an apartment complex in the 6400 block of Hoover Road in Indianapolis, showed off her green 2000 Honda Accord, which is dotted with scores of dime-size dimples. She counted at least 44 depressions on the trunk.

"I haven't tried to see where I'll get it repaired. I might not get it repaired," she said.

The Better Business Bureau of Central Indiana is worried about storm-chasing scam artists.

"I applaud people who have been able to wait and to be patient and get a contract with a local business," said Linda Carmody, president and chief executive of the local BBB. The good news, she said, is that cars are drivable and homes are generally livable, so "it's worth waiting to deal with those good folks."

Indianapolis residents Steve and Joan Shank took their vehicles to Church Brothers Collision Repair in Greenwood, 17 miles south of their home, where damage wasn't quite so severe.

"If I had waited for the Downtown shop where I got the estimates, it would have been the last week of June," she said. "They were already booked."

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HOW BAD IS IT?

Damage claims: 40,000 were made statewide after the storm, property and casualty insurers report. Most are from Central Indiana, and more are expected.

Car dinged? Just wait. Some auto repair shops are scheduling dent repairs into July and August.

Imported help: One auto repair shop has a crew from Brazil in to help with the work. A national storm reconstruction company based in Glen Ellyn, Ill., is opening an Indianapolis office to help rebuild roofs, siding and rain gutters.

Lots of cars were sitting ducks:

375 vehicles on the Honda West lot on West 38th Street and 400 vehicles at Family Buick Mitsubishi near North Shadeland Avenue and I-465 needed repairs.

Through the roof: A contractor who usually works on 20 homes this time of year says he has 100 now.

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Protect yourself

Beware: Do not hire people who come to your door or call you saying they noticed damage.

Referrals: Get referrals from your insurance company or from friends to find a reputable repair shop or contractor. Contact the Better Business Bureau, the attorney general's Consumer Protection Division or services such as Angie's List to make sure the company is in good standing.

Guarantees: Ask if the work is guaranteed. If you notice a flaw, you should be able to have it fixed at no additional charge.

Neighbors: Check with your neighbors if you experienced hail but didn't see any visible damage to your roof. If a neighbor is doing roof repairs, you may have damage as well.

Contracts: Get all contract information in writing. Indiana law requires home improvement contracts exceeding $150 to be in writing.

Payments: Never pay the entire cost of repairs in advance or pay in cash. Down payments should not exceed one-third of the cost of repairs.

Sources: Indiana Consumer Protection Division, Better Business Bureau, Progressive Group of Insurance Companies

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Repairing the damage

Here's a quick look at how cars damaged by hail are repaired:

Paintless: The simplest way of handling hailstone damage is known as "paintless dent repair." A technician pushes small dents back into shape from the inside of a body panel.

Dent pullers: Sometimes mechanics use small dent pullers to remove dents. However, this can mean removing interior panels and fabric and padding lining the roof to get to the dents.

Damaged panels: Where the dents are too numerous and too deep, mechanics must replace damaged body panels with new ones. This is an expensive process because the sheet metal needs primer, color paint and clear coat to bring it up to factory standards.

Star reporters Kevin O'Neal, J.K. Wall and Mark Nichols contributed to this story.

Call Star reporter Tom Spalding at (317) 444-2803.


Publication: THE INDIANAPOLIS STAR
Publication date: Saturday, July 22, 2006
Page number: A01
Edition: FINAL EDITION
Section: NEWS
Day: SAT
Byline: BY TOM SPALDING TOM.SPALDING@INDYSTAR.COM
Byline ID:
Copyright: Yes
RESALE: Yes
archive~44353522


Through the roof! Hailstorm claims soar

April storm one of state's costliest: $560M in damage

BY TOM SPALDING TOM.SPALDING@INDYSTAR.COM

The Good Friday hailstorm will go down as one of the costliest weather events in state history: 177,000 Central Indiana residents have filed claims totaling $560 million for auto and home repairs.

"For many companies, it is the biggest storm they can recall, in terms of dollars," said Marty Wood, a spokesman for the Insurance Institute of Indiana.

Most auto repairs have been completed or scheduled, officials say. Focus is increasingly turning to residential repairs, as many homeowners decide whether to get roofs and gutters fixed.

Officials report isolated cases of fraud on the part of repair crews and homeowners, including one whom officials suspect climbed on his roof and used a coin to simulate storm damage on his shingles.

But as storms go, most agree it was perfect in one sense -- while it created lots of damage, the storm resulted in relatively little hardship. There were no deaths and relatively minor injuries from the storm, which struck on Good Friday.

"It is a catastrophe, but you want to save the word catastrophe for a hurricane or a storm like that," said Doug Miller, 50, of Coomer Roofing of Indianapolis. On Friday, his crew was sweating out another job nailing shingles onto the pitched roof of a home in the Meridian-Kessler neighborhood. "We're here in a nice neighborhood. There's no one having to camp out on their lawns."

Certainly the storm was good for Miller's company. He said that by the end of June, he had already exceeded revenues for all of 2005.

New roof or no roof

For some homeowners, the decision on whether to get a new roof is a no-brainer. A $500 or $1,000 deductible to get a new $10,000 roof is almost a windfall.

"For a lot of people, it is a gift. It is a blessing in disguise," said Scott Surette, a home inspector from Indianapolis. "It's a 10-, 12-, 15-year-old roof that is OK, but they have a golden opportunity to get a new roof, and the insurance company is footing the bill. . . . They say, 'If they are going to hand me free roof, I'll take it.' "

But some suspect there are homeowners and contractors who are taking advantage of the hailstorm.

"There are a lot of roofs being replaced that don't need to be replaced, in my opinion," said Glenn Barton of Barton Home Inspections of Indianapolis. "I think it happens because the opportunity is there to turn it (a claim) into the insurance company, and people are saying 'Me, too.' "

While it may be tempting to keep up with the Joneses and join the re-roofing frenzy, insurance experts say there is a potential downside. Homeowners who turn in too many claims run the risk of having their policy dropped.

The state's Consumer Protection Division of the attorney general's office says it has received relatively few complaints since the storm, and most of those have dealt with the timeliness of getting insurers to pay for repairs.

"The number of complaints relating to work not getting done, scams by home contractors and those kinds of complaints that we have jurisdiction over, have not been voluminous," said Staci Schneider, spokeswoman for Attorney General Steve Carter.

Jerrell Campbell, a Seattle resident who is in Indianapolis to help State Farm Insurance handle 1,400 claims per week here, said only a few instances of fraud have been found. One Indianapolis homeowner, he said, is suspected of using a coin or some other object to mimic hail damage.

In another case being probed, Campbell said one roofing contractor showed a prospective client pictures of a storm-damaged roof -- only it wasn't the client's roof. Some contractors have misrepresented themselves as State Farm employees and submitted claims purporting to work for the policyholder.

How much longer will the repair frenzy last? The state recommends policyholders move promptly in making their claims.

Bob Skinner, 35, Pike Township, said he will get the roof of his ranch home inspected next week. He waited three months to get it done. Part of his motivation is because, on his street, "everybody else is doing it."

"If it's a problem, I want it taken care of before it becomes a problem," Skinner said. "And before I miss the opportunity to take care of it."

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Some quick answers

Bettye L. Foy, of the state Department of Insurance, answered some frequently asked questions.

Q: Is there a deadline for people to file claims from the April 14 storm?

A: Refer to your policy (duties after a loss). The insured should report a claim promptly.

Q: Should homeowners expect their rates to go up once they file a claim?

A: As a rule, rates will not go up after filing one claim.

Q: Can an insurance company cancel a policy related to a single hail event after a claim?

A: Generally, an "act of God" is not grounds for cancellation.

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What homeowners should do

According to Angie's List, a subscriber-based Indianapolis referral company:

If you haven't already done so, inspect your roof, gutters, windows and siding and take photos. Get a damage assessment from your property insurer's adjustor and get at least three estimates from contractors.

Be wary of storm chasers and door-to-door solicitors.

When you pick a contractor, have him or her negotiate directly with your insurer if they disagree on repair costs.

Be prepared to wait until repairs can be made.

Frequently asked questions

Many homeowners are deciding whether to file claims for hail damage. Here is information from Bettye L. Foy, deputy commissioner of the consumer services division in the state Department of Insurance.

Q: How many claims does a homeowner have to file before he or she is in jeopardy of being canceled?

A: As a rule, a policy would not be canceled for one claim unless there is fraud or misrepresentation.

Q: Does money make a difference? Is it better to make a claim for $15,000 or less as opposed to $50,000 or more?

A: No.

Q: Will the state monitor the situation in case rate increases occur?

A: Indiana's property and casualty insurance rate filing laws are designated as "file and use" laws. That means insurers are required to file property and casualty insurance rates with the Department of Insurance but are not required to wait for approval before the rates can be used. The department can, after a hearing, require an insurer to withdraw rates if they are found to be excessive, inadequate or unfairly discriminatory.

-- Tom Spalding

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By the numbers

177,000

Claims submitted from Central Indiana in connection with the April 14 hailstorm, according to Insurance Services Offices, Ind., a for-profit company in New Jersey that tracks catastrophes.

$560 million

Damages submitted from the storm through July 7, according to Insurance Services.

$38.5 billion

Estimated cost of damage caused by Hurricane Katrina, according to Insurance Services.

Call Star reporter Tom Spalding at (317) 444-2803.