November 2017 Volume 65 . Number 11 PropertyCasualty360.com

NAVIGATING THE HAZE OF MARIJUANA COVERAGE P. 24

CHOOSING WEATHER EXPERTS P. 28

SUBROGATING PROPERTY CLAIMS P. 33 THE ECONOMIC LOSS DOCTRINE P. 39 PROPERTY CLAIMS CHALLENGES P. 44

Reprinted with permission from the November 2017 issue of Claims magazine Determining “Weather” or not an Expert is Qualified By Howard Altschule

here are a wide variety of experts what the largest hail size was that fell at other weather information at a specific available to assist in almost any the property, how strong the winds were loss location are becoming more com- type of loss these days. Follow- during a hurricane or windstorm, what mon, and successful challenges could be Ting multiple severe weather storm surge heights existed, and other im- detrimental to the outcome of a case. events like the recent hurricanes, major portant weather information. With severe hailstorms or severe thunderstorms, ad- hailstorms and hurricanes becoming more Qualifying your experts justers, attorneys and some engineers numerous, it is even more important to Many carriers and law firms rely on pro- are finding value in retaining a Certi- get accurate and site-specific weather in- fessionals who are not meteorologists fied Consulting Meteorologist (CCM) to formation from reliable experts. and simply use basic NOAA informa- provide expertise after a weather-related Daubert challenges and other legal tion, sometimes from quite far away, to claim is filed. proceedings intended to preclude some support their opinions in their reports. Common meteorological analyses over experts from testifying about hail size, With hundreds of thousands of claims, a specific loss address can determine hurricane wind speeds, tornadoes and and hundreds of billions of dollars at shutterstock.com/SFIO CRACHO

28 | November 2017 | Claims Magazine | PropertyCasualty360.com Here are several important factors that should be considered: 1. Retain a certified consulting me- teorologist (CCM): CCMs have the highest certification a consulting meteo- rologist can obtain. They are experienced, underwent rigorous written and verbal examinations, and are highly regarded by their peers. 2. Education, experience and knowl- edge: Ensure that the CCMs used have worked on similar cases in the past. They should at least have a Bachelor of Science degree in Meteorology/Atmospheric Sci- ence. Non-meteorologists should not be giving opinions about the weather condi- tions that existed at specific loss locations. 3. Expert testimony: Make sure the expert retained is willing to testify, and it is helpful if he or she has significant testi- mony experience. 4. Your expert should work for both sides: An expert should be willing to work for anybody who wants to know about weather conditions, and their case- load should be pretty evenly split between cases for plaintiffs and defendants. If an expert only works for plaintiffs or only for defendants, that’s a problem.

Hurricane claims and lawsuits Hurricanes Harvey, Irma, Jose and Maria occurred weeks apart, each with a unique set of circumstances that have already caused tremendous debate within the insurance claims industry. Since many of the claims are valued at hundreds of thousands or millions of dollars of dam- stake from multiple severe hail events or compile a more reliable report. This way, age each, it is important to investigate Hurricanes Harvey, Irma and Maria, it’s if a case proceeds to trial, the experts each loss thoroughly. more important than ever to have accu- will be able to provide certified weather Hurricane Harvey caused many places rate weather information from a quali- records and testify about their findings to experience damaging hurricane force fied expert. in a deposition or at trial. winds and storm surge, while others ex- Some carriers and attorneys are now So, how do you choose the right ex- perienced tropical storm-force gusts, ex- using qualified meteorologists to pro- pert for your hurricane or hail claims? treme rainfall and devastating flooding. vide more reliable weather information First, it’s imperative that each expert stay Damage claims from gusty winds, wind- and reports. When these analyses and “within their box.” The last thing an attor- driven rain and tornadoes have also been reports are completed for a specific ad- ney wants is a judge precluding an expert pouring into insurers. dress, they are often provided to engi- from testifying about hail size or wind There have been many tornado dam- neers involved in the case who do cal- speeds on a large loss claim because it’s age claims as a result of the numerous culations based on the findings and to beyond his scope of expertise. tornadic rotations that moved through shutterstock.com/SFIO CRACHO

PropertyCasualty360.com | Claims Magazine | November 2017 | 29 An insurance claim was filed stating that golf ball-sized hail caused func- tional damage to a roofing system of a condominium complex. A NOAA hail report from three miles away was submit- ted as evidence of the storm. Numerous Doppler radar images and other official records were analyzed, which indicated the hail-producing thunderstorm stayed 2.0 miles south of the condominium de- velopment, and that no hail occurred on that date. With the claim denied citing the fo- rensic meteorology report and no ev- idence of hail damage on the roofing system, the carrier saved millions of dol- lars on that claim alone. Had the carrier also relied on that NOAA report from 2.0 miles away, the outcome would have been very different. It’s imperative that each expert stay Experience matters Too often, experts who are not meteo- “within their box.” rologists write reports that only include very basic NOAA storm reports as evi- dence. Many of these expert reports tend to be misleading, or they overlook more the Houston Metro area. After a CCM tion is important to most claims. Because detailed and site-specific weather infor- plots the incident location on the ra- hail size can vary from one location to mation that can lead to different results. dar products, a detailed analysis of the another over short distances, a CCM can The meteorological findings and basis of Doppler radar reflectivity and velocity conduct a thorough, site-specific analysis the experts’ opinions could then become radar images should be conducted for for each large loss hail claim. By provid- problematic as the case progresses, es- each case to determine if strong rotation ing details of the hail size at the specific pecially if an expert meteorologist is re- or a tornado passed over a loss location. location and when previous hail events tained by the other side. Using this information and other types occurred, adjusters and attorneys can When selecting the right experts for of data, the maximum wind gusts, peak make informed decisions on how to pro- claims or litigation, be sure to consider storm surge heights, presence of a tor- ceed with each case. the qualifications of the expert, the value nado and the total rainfall can be deter- Industry-accepted methodology for a CCM can bring to a case, and the con- mined for any location. investigating hail claims includes analy- sequences if non-meteorologist experts Even though a lot of the wind measur- sis of weather warnings, storm reports, are unable to testify about weather condi- ing equipment in south Florida and the Doppler radar images, differential reflec- tions at the incident location. Florida Keys failed or was knocked off- tivity, correlation coefficient, as well as line during Hurricanes Irma and Maria, 3-dimensional volume scans or cross sec- Howard Altschule (HGA@ we have many different tools and high tions. When conducting a radar analysis WeatherConsultants.com) is a certified resolution data sources to help us provide over an incident location, for example, if consulting meteorologist and the owner site-specific information for any location. the various radar images do not indicate of Forensic Weather Consultants in New hail, or if 50 Dbz reflectivity values [a log- York. He has consulted on nearly 5,000 Hail claims and lawsuits arithmic measurement used in weather] cases across the country and works as Hail damage in the U.S. is a huge multi- are not present above certain levels of the an expert on slip and fall cases as well as billion dollar peril each year. Knowing if atmosphere over an incident location, numerous hail, tornado, wind damage and when hail occurred at a specific loca- then hail was not present. and hurricane claims. shutterstock.com/SFIO CRACHO

30 | November 2017 | Claims Magazine | PropertyCasualty360.com