HVAC Forensics: Uncovering the true cause of loss to HVAC systems. Curtis M. VanNess Field Operations Manager
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1 HVAC Forensics: Uncovering the true cause of loss to HVAC systems Curtis M. VanNess Field Operations Manager
2 Objectives Improve your understanding of power surge damage, HVAC systems, component failure, and repairability Identify concerns in contractors estimates Increase your confidence level when making HVAC coverage decisions 2
3 Outline What is a lightning-induced power surge? Types of HVAC systems and their components Lightning reports, collateral damage and HVAC system failures Cause of failure results from 2014 Destructively testing compressors Identifying red flags during the claim handling process Repair vs Replace SEER rating issues R-22 versus R-410A Acidic systems Donan s Forensic Technicians Questions for the insured and contractor Hail and Estimate Review 3
4 4 Lightning-induced Power Surge
5 Types of HVAC Systems Split Systems Package Units Rooftop Units (RTU) Subtypes Heat Pump and Air Handler AC and Furnace Combination AC only 5
6 6 HVAC Heat Pump Split System
7 Testing Different Components for Damage What are the chances all of these components are damaged? Compressor Contactor Fan motor Capacitor Control boards Thermostat Blower 7
8 Causes of Failure What you expect to see with HVAC failures? Lightning/Power Surge Hail/Wind/Storm/Ice Vandalism/Theft Mechanical Normal Wear Poor Maintenance Improper Installation Manmade damage 8
9 What is power surge damage? Direct strikes are rare. Too much current flows through the wiring. An electrical short to ground occurs. Isolated point of failure, spontaneous event. Failure can be visual or measured with meters. 9
10 10 Evidence of a Direct Strike
11 Lightning Track Reports There is no correlation between presence of a lightning strike or the distance from a lightning strike and subsequent damage to the HVAC system. The proximity of lightning to the loss location does not provide conclusive support or evidence that damage to a HVAC system was caused by lightning/power surge. 11
12 Collateral Damage Is there evidence of a direct strike outside? Was there collateral damage in the home? What are some common indicators? Garage door openers, laptops, TVs, phone, cable, etc. Power surge causes immediate recognizable effects: The HVAC system will not turn on or cool at all. It will not continue to limp along and then fail in the future. Circuit breakers can be tripped Electronics are far more susceptible than HVAC compressors. 12
13 Collateral Damage vs. Cause of Failure 679 Projects: Collateral Damage was Reported 2444 Projects: None Reported Other 11% Operational 8% Warranty 3% Operational 5% Other 13% Warranty 4% Power Surge 43% Wear 35% Power Surge 30% Wear 48% Collateral damage is not a conclusive indicator for solely determining the cause of loss to HVAC systems. 13
14 Why Investigate HVAC Claims? Hail 5% Maintenance 2% Warranty 3% Manmade 2% Leak 1% Improper Repairs 1% Declined 1% Installation 1% Operational 5% Mechanical 8% Wear 32% Cancel 10% Power Surge 30% 14
15 Why do we need to destructively test compressors? Wear 46% Power Surge 54% It is required to determine the cause of the loss. It could fail by power surge, mechanical damage, normal wear, or acid contamination. 32% of the time we cut the compressor open and about ½ the time it is found to be caused by power surge. 15
16 16 What is more likely to be damaged?
17 Red Flag 1: Repair vs Replacement. Parts are available and systems can be repaired. HVAC Red Flags Red Flag 2: SEER rating issues. It is acceptable to pair a 13 SEER outdoor unit (dry charge) with a lesser SEER indoor A-coil, this is considered restoring the unit to like and kind. The new 14 SEER regulation Red Flag 3: The Availability of R-22 Refrigerant. R-22 is still available for purchase; the HVAC industry recycles used R-22 refrigerant and cleans it for future use. Red Flag 4: Acid in the Refrigerant System. Acid is caused by improper repairs or poor maintenance practices. It forms over a period of time and it is not a spontaneous event. Red Flag 5: Chiller Systems with ruptured refrigerant tubing caused by Freezing. These systems should be winterized or installed with Glycol. 17
18 Repair and Replacement Options 1. Is the unit under manufacturer s warranty? a) The adjuster should always ask the homeowner this first. The insured s technician should have first identified the damage and then checked to see if it is included under the warranty. b) Most warranties are 5 years with an option of 10 years if the owner completes a registration card. 2. Replace the damaged component. 3. Replace the outdoor unit with a dry-charge unit. 4. Replace the outdoor unit and indoor coil. 5. Replace the entire HVAC system. 18
19 HVAC Forensic Technicians Trained and certified using a program developed by mechanical and electrical engineers. Work only for Donan and perform no service work for other firms (W-2 employees). Our employees will not permanently repair the unit because we must stay unbiased in order to give the conclusive opinion. The technician will temporarily get the unit running to show the insured the unit is able to be repaired (when possible). All reports are peer reviewed. Quality control system is in place. The reports are published within 24 hours of the site inspection date. 19
20 20 HVAC Field Forms
21 HVAC Forensics Summary Report Summary report includes: 1. Cause of failure 2. Repair recommendation 3. Repair estimate 4. 4 photographs 21
22 Questions for the insured or contractor Questions for the insured Is there evidence of a direct strike to the house by lightning? If yes, what is the evidence? If no, how did you determine the damage was from lightning (storms, flickering lights, etc.)? Is the unit running now? Does the heat work? The blower? The air conditioner? Was there a storm producing lightning when the unit failed? Date and time of failure? Was the unit running at the time of failure? Or did you go to turn it on and discover the unit didn t work? Was any other electrical equipment damaged at the time of the HVAC failure? Was the HVAC breaker flipped? Have you tried to reset the breaker to see if the unit will run? Is the unit under manufacturer s warranty? Have you pursued a warranty claim? Questions for the contractor What component has failed due to the lightning/surge? How did you determine the damage was caused by lightning/surge and not something else? Is the unit under manufacturer s warranty? Have you pursued a warranty claim? Can you repair the unit by replacing the damaged component versus replacing the entire system? Can you replace the condensing unit with a dry-charge unit instead of replacing the entire system? Why are you replacing the unit with a R-410A system when you can repair the unit with R-22 components? 22
23 Onsite Failure Analysis Determine which component has failed. Use visual observations, meter readings, amp draws, gauge measurements to determine causation. Photographs prove the failure. The HVAC system does not need to be connected to a power source to determine the cause of failure. 23
24 Control Boards a common failure Visual power surge evidence can be found on the front and/or back of the board. 24
25 Destructive Testing The compressor has internal mechanical and electrical components to inspect and test. 24
26 Compressor failure analysis 4 types of failures: 1) Power Surge 2) Wear and Tear 26
27 Compressor failure analysis 3) Acid Contamination 4) Mechanical 27
28 Is this evidence of a power surge? Charred wiring insulation, corroded connections, and broken wiring/terminals are not caused by a power surge. 28
29 29 External Heat Source
30 Catastrophic Failure (fire) Capacitor failure: This type of failure can be caused by a power surge or if the compressor has mechanically failed. This unit will be replaced. 30
31 Other causes of failure Animal damage Poorly maintained 31
32 Why Investigate Hail Claims? Comb Fins 84% Replace Coil 11% Hail Investigation Repair Recommendations Replace Unit 5% 32
33 33 Is the hail-dented unit repairable?
34 Hail Reports Can the coil be combed out? Are the hail dents performance affecting? What is the cost of repair? 34
35 Contractor s Estimate Review Purpose is to determine if a contractor s estimate is reasonable. 35
36 2015 Pricing $600 Fixed-price HVAC Investigation for residential units or light commercial (5 tons and smaller) with unit located on grade and electronic report with four photos. Destructively testing the compressor is excluded. $700 Fixed-price Investigation with Destructive Testing $600 Fixed-price HVAC Hail Investigation $195 Fixed-Price Contractor Estimate Review (HVAC Only) The fixed price includes 2 hours (90 miles) of roundtrip travel from the nearest HVAC Forensics office location. Additional travel is billed at standard time and mileage rates. - A $250 per project surcharge applies to Oklahoma. 36
37 37 Coverage Area
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