Property Damage Handbook PDF - Farahí Law Firm

FARAHI LAW FIRM PROPERTY DAMAGE HANDBOOK Table of Contents Property Damage Abbreviations ....................................................................................................................................... 2 Introduction ............................................................

FARAHI LAW FIRM PROPERTY DAMAGE HANDBOOK Table of Contents Property Damage Abbreviations ....................................................................................................................................... 2 Introduction ............................................................................................................................................................................... 3 Getting Started with Property Damage .......................................................................................................................... 4 Build Your Cases Through the GROW Method ....................................................................................................... 4 Types of Car Accidents ..................................................................................................................................................... 5 Types of Premises Cases .................................................................................................................................................. 9 Understanding the Property Damage Process .......................................................................................................... 10 Is the Vehicle Repairable or a Total Loss? .............................................................................................................. 10 First Steps to Follow (Checklist for Repairable Vehicles): .............................................................................. 10 First Steps to Follow (Checklist for Total Loss Vehicles): ................................................................................ 13 City Claims: California Procedure ................................................................................................................................... 14 Understanding the Small Claims ..................................................................................................................................... 14 In Small Claims We Can Claim Up To: (Always Double check on the Courts website). ....................... 15 The Fee for Filing in Small Claims in Court Depends on the Amount of the Claim: .............................. 15 Be Mindful of the Statue of Limitations ........................................................................................................................ 16 Think Out of the Box and Make Yourself a Successful Person ............................................................................ 16 There Is No Time for Negativity ................................................................................................................................. 16 Property Damage Vocabulary / Definitions ............................................................................................................... 18 1 Property Damage Abbreviations CA California, United States of America. CM Case Manager. DEF Defendant. DEC Page Insurance Declaration Page. DMV California Department of Motor Vehicles. FLF Farahi Law Firm. LOR Letter of Representation. LOP Letter of Premises. LOU Loss of Use PD Property Damage Dept. PL Plaintiff 2 Introduction The purpose of this manual is to explain and exemplify the operation of a property damage claim following a vehicular accident or an accident occurring on the premises of a business. In doing so, it is also intended to provide you with an understanding of the process to follow depending on the scenario within the case to be analyzed, thus achieving successful results in your career as a Property Damage Case Manager. That said, make this manual your day to day guide, in it you will find the types of accidents, circumstances that cause these fatal accidents, steps to follow to open a claim with the insurance company and much more data that will make your work one of quality and warmth. Don’t forget, “The road to brilliant leadership is far from smooth; it is challenging and timeconsuming” - John Whitmore . 3 Getting Started with Property Damage Build Your Cases Through the GROW Method For any process to be successful, it is necessary to have very clear what are the objectives to pursue, thus, we will know what are the goals we want to achieve, as in any work process, in the property damage department, we set the objectives through the GROW method. • Goal: The primary objective of the property damage department is to work on cases and have the defendant declared at fault for the accident, followed by the acceptance of liability within 3 months at maximum. G • Reality: According to the California Department of Motor Vehicles, regardless of how cautious drivers are, the vast majority of them will be involved in at least one auto accident in their lifetime. One out of every three people will be hurt or killed. For this reason, it is vital to understand that each case will be unique, and that your property damage process will also be unique and complex based on the context and circumstances of the assigned case. R O • Options: Collaborate with the Case Manager on your assigned case in order to gain an understanding of the case's reality, allowing you both to consider actions, solutions, and ideas that will help resolve or advance the situation. Options are essential because they allow us to feel in control and empowered. W • What is to be done?: Once a course of action has been determined, it is essential that all parties involved have agreed to it so that they feel confident carrying it out. At this stage, it is necessary to discuss the what, when, who (support/participation), and the willingness to do it. The GROW Method will assist us in establishing a well-defined goal of what we want to accomplish and how we want to accomplish it. In property damage, this is a crucial step to take because, as stated previously, TIME FLIES BY ITSELF, also as a PD Case Manager, you must devise strategies that will enable your case to conclude in the most favorable manner possible. Now that we have established a goal, it is time to learn about the various types of accidents that can result in an insurance claim for property damage and body injuries. 4 Types of Car Accidents The Property Damage department handles the cases related to the property that was damaged as a result of a car accident. For which, it is important to identify the different types of car accidents. See, the examples Below: 1. Rear End: A rear-end collision, by definition, is a type of automobile accident that occurs when the driver of a vehicle crashes into the vehicle that is driving in front of them. It can be caused for:  Driver inattention or distraction  Driver Speeding  Tailgating 2. Turning Left Case Accident: Generally, the driver turning left will be found liable for the collision. Drivers making a left-hand turn must maintain a proper lookout and yield to oncoming traffic until it is to safe to proceed. It can be caused for:  Illegal maneuver  Driver inattention  Distracted driving  Turning with an obstructed view  Misjudgment of other’s speed or actions 3. Merging Case Accident: California drivers who fail to yield the right of way to ongoing traffic are usually at fault in a merging lane accident. It can be caused for:  Merging into traffic at an unsafe speed — either too fast or too slow  Failing to check blind spots  Failing to use turn signals  Merging too close in front of or behind another vehicle  Crossing multiple lanes of traffic Remember, freeway traffic has the right of way. 5 4. Freeway Lost Control Accident: If a driver causes an accident by losing control of his or her vehicle, the driver could be liable for victims' damages It can be caused for:  Distracted driving  Mechanical failure  Speeding  Weather conditions  Road debris  Aggressive driving  Drunk driving  Fatigued drivers 5. 4 Way Stop Sign Accidents: Four-way stops, also known as all-way stops, are intersections that have stop signs controlling all four sections of road where they cross or converge. It can be caused for:  Distracted driving  Speeding  Drunk driving 6. T-bone Accidents: Also known as a broadside collision, most T -bone accident causes involve someone failing to yield to the driver that has the right of way. It can be caused for:  Distracted driving  Speeding  Drunk driving  Blocked View  Misjudgment of gap size when turning  Miscalculation of approaching traffic speed 6 7. Head on Accidents: Also called a “frontal” crash is when cars driving in opposite directions crash front to front. Any car accident can cause injury, but statistics show that head-on crashes are even more likely to result in serious harm or fatality to the driver or passengers in either vehicle. It can be caused for:  Distracted driving.  Driving while fatigued.  Using poor technique when overtaking a vehicle.  Driving under the influence of drugs or alcohol.  Ignoring traffic signs and signals. 8. Rollovers Accidents: A rollover accident is one that involves a vehicle tipping over onto its side or rolling completely over until it is upside down. In some cases, the car may roll over multiple times before it comes to rest. It can be caused for:  Distracted driving.  Driving while fatigued.  Using poor technique when overtaking a vehicle.  Driving under the influence of drugs or alcohol.  Icy or wet roads 9. Motorcycle- t bones Accidents: Also known as side impact and broadside accidents. The t-bone danger is magnified when an automobile or truck hits a motorcycle in a sideimpact crash. It can be caused for:  Failing to yield  Running a red light.  Unsafe lane changes.  Distracted Driving  Driving under the influence of drugs or alcohol. 10. Motorcycle- the cyclist rear ends someone: The rear end is a type of accident in which the motorcyclist hits the rear end of a vehicle, or it can also happen the other way around, i.e. a vehicle hits the rear end of a motorcycle. It can be caused for:    Inattentive or impaired driver Tailgating Speeding 7 11. Bicycle or Scooter-on the roadway: In mixed traffic settings where cyclists or a scooter driver share the road with other motorized vehicles, the speed of motorized traffic is an important factor for both crash risk and crash consequences It can be caused for:      Inattentive driver Speeding After dark Turning without warning Running the stop sign 12. Semi Commercial Accidents-Merging Cases: A semi commercial is an overarching term for a large commercial vehicle. It can also be called a semi, a tractor-trailer, an 18wheeler, or a big rig, among other monikers. A semi commercial merging happens when the truck driver yields the right of way to ongoing traffic. It can be caused for:  Merging into traffic at an unsafe speed — either too fast or too slow  Failing to check blind spots  Failing to use turn signals  Merging too close in front of or behind another vehicle 13. Semi commercial accidents-head on: A head-on truck accident occurs when the front end of a large commercial vehicle collides with the front end of an oncoming car. It can be caused for:  Improper cargo loading  Inadequate maintenance  Negligent truck company practices  Driver inexperience (Distracted driving or fatigue) 14. Semi Commercial accidents -T bone: A T-bone accident with a semi-truck is one of the most dangerous events that a person can endure. The size and weight difference between these monstrous vehicles and the average passenger car is enormous. It can be caused for:  Speeding  Failing to yield  Driving under the influence NOTE: Consult the California DMV Driver's Handbook at https://www.dmv.ca.gov/web/eng_pdf/comlhdbk.pdf for future reference on your semi commercial cases. 8 Types of Premises Cases In this type of accidents, the work to be done is to assist the case manager in whatever is required in the case. Additionally, the PD case manager will open the claim against the insurer or the city if it turns out to be a city claim. The following are some examples of premises cases: 1. Slip and Falls / Trip and falls Cases: A slip and fall accident occurs when a person falls over as a consequence of walking on a slippery surface. A trip and fall accident occurs when a person trips over an object on the floor and cannot bring their other leg forward fast enough to prevent the fall. Examples of slippery surfaces include:  Hard floors that have recently been waxed or cleaned Examples of trip and fall scenarios include:  Tripping over the elevation between the street and the sidewalk 2. Dog Bites Cases: While some of these incidents are unavoidable, many are the consequence of inadequate supervision, improper training, and other forms of owner negligence. 3. Pedestrians - Crosswalk Cases: Drivers must yield to pedestrians entering or in a crosswalk. 4. Pedestrians - No Crosswalk Cases: Not all crosswalks are marked. If there is a stop line before the crosswalk, the stop line must be obeyed first. NOTE: According to the California DMV Pedestrians have the right-of-way in marked or unmarked crosswalks. Read more about it here: https://bit.ly/3CCWPGW 9 Understanding the Property Damage Process Is the Vehicle Repairable or a Total Loss? In most cases, our client’s property was damaged, for which reason, contacting the insurance company to begin the property damage claims process will always be our first step. The claim adjuster will assess the damage and determine whether your vehicle is repairable or a total loss. Repairable • Means the cost to repair your vehicle is LESS THAN the vehicle market value. Total Loss • Means the cost to repair the vehicle is HIGHER THAN the fair market value of the car. Fair market value refers to the price you could have sold your vehicle for to an individual person prior to it being involved in a crash. Find out the fair market value of your vehicle by using resources such as KelleyBlueBook.com or AutoTrader.com. First Steps to Follow (Checklist for Repairable Vehicles): 1. Open a Claim:  Verify that the Statement of Facts and Incident details in the Intakes email correspond to the ones on FV.  Verify that the Statement of Facts and Incident details in the Intakes email correspond to the ones on FV.  Examine the images sent by the client in DropBox and assess the property's condition.  Coordinate with the case manager on what appropriate words to use while opening the claim if not sure.  Ask for the Adjusters Name and Contact information and update FV > Insurance Info Tab with the Adjusters important data. 2. Send LOR Letters:  Now that you have the adjusters contact information, send by fax or mail if no fax available the LOR.  Generate on FV the LOR letter and fill in the Retainer Agreement authorization pages 7 & 8, all the other pages please delete them (Only applicable for the LOR of our client). (Don’t forget to request the DEC pages). If the LOR needs to be sent to the DEF, we will generate the LOR but we WON’T send the Retainer Agreement of our client. (Don’t forget to request the DEC pages).  10 3. Fill in and Send the SR1, SR19, SR22, INF 125 and INF 70 Forms (IF Applicable):  SR1: This is used to report a traffic accident occurring in California.  SR19: When we lack the DEF insurance information, this is useful. Consider that if our case is a TIER 1 or TIER 2, it will be necessary to discuss with the CM whether a USAExpress can be made (this is faster but more expensive); if the case is a TIER 3, then the SR19 should be considered (This is slower but cheaper). Be smart and your resources when it is prudent.  SR22: Useful to reinstate driver’s license privileges, after being suspended.  INF 1125: Useful to request our clients request for own driver license/identification card (DL/ID) vehicle/vessel registration (VR) record.  INF 70: Useful to request a copy of another person’s driver or vehicle/vessel records or a deceased person’s photograph.  If you need any of the above-mentioned forms, click here: https://bit.ly/3ENE5XV 4. Request the Traffic Collision Report (TCR):  Generate on FV the TCR request letter.  Fill in our client’s Retainer Agreement Authorization pages only, which will be 5,6 and 7, all the other pages from the agreement needs to be deleted. Don’t forget to delete our client’s Social Security Number.  Double check that the police department in charge of the TCR doesn’t require any additional form. For example, Los Angeles Police Department require their own form.  Double check the police department address and fees in order to get a copy of the TCR.  Create a task on the Mailroom Group (RingCentral) indicating the address and check amount in order for the TCR request to be mailed out accordingly. 5. Investigate and Get all Sources of Evidence You Possibly Can:  Investigating will help to clear liability and discover coverage in your cases.          Video Footage (Obtain any video recordings as soon as possible, as most businesses that may have them delete them after seven days aprox). Vehicle Dash Cams (Get the law enforcement involved by sending the letter to preserve dash cams to the insurance). Police body Cam or more photographs (Request these type of evidence with the TCR Request itself). Light Sequences Reports MAIT Report. Letter for defendant’s insurance information (This will be useful for coverage and to figure it out if the DEF was the owner or just the driver of the vehicle or in the other hand, will help to find out new car insurance information Vs. Previous owner insurance). LexisNexis (If we don’t know how to serve or locate the DEF use LexisNexis in order to get addresses, relatives information, associates, employment or even neighbors). Switrs (Liability of governmental agency) request by email and if it is too complicated use USA Express. Asset Searches (Request needs to be sent by email first here: [email protected] if it didn’t work out, use USA Express but remember it is more expensive). 11 6. Get the Acknowledgement Letters and Liability Status:  After sending the LOR, make sure to follow up with the adjuster 2 days later for the acknowledgment letters and the status of liability. If liability is pending for more than a month send the Liability 40-day letter. 7. Move the Car from Storage:  Remove the vehicle from the storage lot or tow yard as soon as possible. The longer the vehicle remains at the storage, the more likely our client’s be responsible for the storage costs. Remember, to give the storage fee receipts to the claim adjuster for reimbursement.  Obtain approval to move the car to a storage on a lien. If car is old and not worth much, we can just do an owner retain and the storage facility keeps car. 8. Damage Appraisal:  Damage appraisals are based on the year, make, model, mileage and condition of the vehicle. Once the claim adjuster calculates their offer, request a copy of their market summary analysis along with a breakdown of the offer that itemizes reimbursements of any deductibles or after-market upgrades.  Insurance appraisal: 1. Collision (1st appraisal) 2. Defendant (1st appraisal) 3. Third Party –hired by us for dispute and also hired by client for repairs (1 st appraisal and supplement). 9. Take the Car to the Body Shop:  Preferred Body Shops: These ones are not very recommended to work with because these usually work for the insurance company.  Independent Body Shops: These DO work with us, if we have a client that does not know where to take their cars we will refer our client to their body shops then. (Give the client 2-3 options).  Undercarriage Inspection: This step is MANDATORY for every repairable vehicle; it is NOT applicable for a total Loss. (Go through one of our body shops and generate on FV the undercarriage letter). 10. Pick Up Rental / Loss of Use:  PL insurance rental coverage reimbursement (If client does not have any money escalate the case).  Defendants: Once liability is clear defendant pays directly. If client is under 25 years old or does not have a credit card, escalate up (but we might not be able to help, DON’T say anything to the client before escalate the case) Loss of use is the way to go. We NEVER give out card to have the client get a rental.   Use a Body Shop that provides loaners. Payout of PD (Get proof of payments). 11. Claim Completed! 12 First Steps to Follow (Checklist for Total Loss Vehicles): 1. Open Claim:  Verify that the Statement of Facts and Incident details in the Intakes email correspond to the ones on FV.  Verify that the Statement of Facts and Incident details in the Intakes email correspond to the ones on FV.  Examine the images sent by the client in DropBox and assess the property's condition.  Coordinate with the case manager on what appropriate words to use while opening the claim if not sure.  Ask for the Adjusters Name and Contact information and update FV > Insurance Info Tab with the Adjusters important data. 2. Determine Rental Coverage:  If our client has rental coverage through its own insurance policy, we recommend going through it to arrange for a rental vehicle.  If our client does not have any rental coverage, it might result on getting on its own a rental car or pay the costs on alternative transportation for example Uber, Lyft, Public buses, etc. Advise the client to save the receipts and any type of proof of payments for later reimbursement.  To recover damages for “loss of use” of a vehicle, you must prove: 1. The reasonable cost to rent a similar vehicle, and 2. For the amount of time reasonably necessary to repair the vehicle’s damage or replace the totaled vehicle. 3. Damage Appraisal:  Damage appraisals are based on the year, make, model, mileage and condition of the vehicle. Once the claim adjuster calculates their offer, request a copy of their market summary analysis along with a breakdown of the offer that itemizes reimbursements of any deductibles or after-market upgrades.  Insurance appraisal: 1. Collision (1st appraisal) 2. Defendant (1st appraisal) 3. Third Party –hired by us for dispute and also hired by client for repairs (1st appraisal and supplement). 4. Move Car from Storage:  Remove the vehicle from the storage lot or tow yard as soon as possible. The longer the vehicle remains at the storage, the more likely our client’s be responsible for the storage costs. Remember, to give the storage fee receipts to the claim adjuster for reimbursement.  Obtain approval to move the car to a storage on a lien. If car is old and not worth much, we can just do an owner retain and the storage facility keeps car. 5. Review and Agree with client to Value of Vehicle:  An offer will be made by the insurer and it needs to be reviewed with the client and if the offer looks fair and good, then we will have an agreement on the vehicles value. 6. Finalize Paperwork:  The client will have to sign and send all the proper documents to the adjuster. 7. Payout Process: 8. Get proof of payments - Claim Completed! 13 City Claims: California Procedure As we have seen previously, if our client is injured due to the negligence of a driver or a business, it is our responsibility to immediately file a claim with the insurance company. Now the question is, what if my injuries were caused by the government or a government employee's negligence? Can I sue my city for these damages? The answer to those questions is yes! 1. When you sue a government agency, you first have to file a special claim (called an "administrative claim") with the government office or agency before you file in court. You have to use the government’s form to file the claim (Usually these are e-forms that we can locate at the city’s websites). Example of a City form. Los Angeles City 2. After you file your claim, the government has 45 days to respond. If the government agency denies your claim during the 45 days, you have 6 months to file a lawsuit in court from date the denial was mailed or personally delivered to you. 3. If you do not get a rejection letter, you have 2 years to file from the day the incident occurred. But do not count on having 2 years to file your claim. Understanding the Small Claims When our client lacks insurance coverage and does not have UM/UIM to cover the cost of property damage caused by a collision with an uninsured driver, "small claims" may be an option. It is important to know that FLF DOES NOT handle small claims regularly, however, we DON’T drop the case immediately, we help the individual with the paperwork package and assist the client on how to file the small claim on court. 14 The process for small claims, is easy and straight forward, however, it is always necessary to identify the county in which the claim will be filed and double check on the county’s court website their processes for small claims. Usually the process might be the one below: 1. Identify the correct defendants (The person or company you belive owes you money). 2. Determine the exact amount of your claim. Usually in small claims court, we can sue for an amount up to $10,000. But ALWAYS investigate 3. Draft or use the demand letter (form) of the court in which the small claims will be filed. And send it to the party that owes you money. 4. The Defendant will have normally 10 days to respond your demand letter, in which the DEF can agree to pay our client, resolve the issue via mediation or deny your demand. 5. If our client is not satisfied with the denial response, then the demand letter needs to be filed on court and we will have to serve the defandant . A judge will decide if the moeny can be recovered or not. In Small Claims We Can Claim Up To: (Always Double check on the Courts website).  Individuals can claim up to $10,000.  Corporations, partnerships, unincorporated associations, governmental bodies, and other legal entities cannot claim over $5,000.  No Claimant (Natural person or legal entity) may file more than two small claims court actions for more than $2,500 anywhere in the state during any calendar year. The Fee for Filing in Small Claims in Court Depends on the Amount of the Claim:  $30. If the claim is for $1,500 or less.  $50 if the claim is for more than $1,500 but less or equal to $5,000.  $75 if the claim is for more than $5,000. 15 Be Mindful of the Statue of Limitations According to the Judicial Branch of California, a statute of limitations is the deadline for filing a lawsuit. Most lawsuits MUST be filed within a certain amount of time. In general, once the statute of limitations on a case “runs out” the legal claim IS NOT VALID ANY LONGER. In light of the above-mentioned, what are the limitations statutes we should be aware of? For Personal Injury Claims: 2 years from the injury. For City Claims: 6 Months to file a claim against them. Think Out of the Box and Make Yourself a Successful Person There Is No Time for Negativity You have reached the conclusion of the manual. Congratulations! Keep in mind that, as a property damage case manager, you will occasionally experience moments of stress or negativity (this is normal). If you are in this situation and have no idea on how to solve an issue on your case, please read the following advice.   When asked to think about options for taking an issue forward we can be faced with negativity. This negativity comes from our own limiting beliefs. Some very common negative responses are:  I don’t know  It can’t be done 16  It can’t be done like that  They would never agree to that  It’s bound to cost too much/take too much time. To unlock negativity, the following ‘what if...’ questions may work   What if you knew the answer? What would it be? What if the obstacle didn’t exist? What would you do then?  What if you did have enough money/time?  The key is to identify the limiting belief; the solutions and choices are then much easier to find. Ask your questions every time you feel confused and be ready to be successful! Some questions that may help are: What are you going to do? When are you going to do it? Will this action meet your goal? What obstacles might you meet along the way? Who needs to know? What support do you need? How and when are you going to get that support? What other considerations do you have? On a scale of 1-10 how confident are you that will carry out the actions agreed? What prevents it from being a 10? What would make it a 10 for you? 17 Property Damage Vocabulary / Definitions 1. Actual Cash Value: Fair market value of an item at the time it was damaged, stolen or destroyed. After a loss, your company will review the condition of your car's body, interior, tires, and additional equipment. Based on the pre accident condition of the car, a claim adjuster locates similar models for sale in your area, and uses those prices to determine the Actual Cash Value. 2. Adjuster: Person who works for the insurance company and will investigate the accident per, and offer an amount of money. 3. Appraisal: A professional, formal, written estimation of the value of property. Damage appraisals may be completed by an insurance adjuster or vehicle repair specialist. 4. Carrier: Insurance company that actually underwrites and issues the insurance policy. The term refers to the fact that the company carries (or assumes) certain risks for the policyholder. 5. Claim: Request by an insured for the insurance company to cover an incurred loss. A claim may be filed online, by phone or in writing. 6. Defendant: It's the party at-fault. The person we are suing. 7. Deductible: The portion of a claim you pay out of pocket. Choosing a higher deductible will lower your insurance premiums. 8. Estimate: An assessment of the cost to repair your damaged property. 9. Lien: Any official claim or charge against property or funds for payment of a debt or an amount owed for services rendered. Statutory liens: (Governmental Lines) can be such as: Medical, Medicare and Child Support. 10. Loss of Use: Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage. 11. Premium: The price of the insurance policy that the insured pays in exchange for insurance coverage. 12. Plaintiff: It’s the person we are representing (our client). 13. Subrogation: Is a way for an insurance company to recover the money that it has paid to an injured person with insurance. This is done by bringing an action in the name of the insured as against the person who is responsible for the loss/injury. The right of subrogation is established contractually, at common law, and in section 278 of the insurance Act. 18 12079 W Jefferson Blvd. Culver City, CA 90230 PHONE: (310) 774-4500 FAX: (424) 295-0557 19