Joe Gregg 200 N Duncan St Marine, IL

Transcription

1 Case 1:06-cv LTS-RHW Document Filed 01/29/2010 Page 1 of 9 Joe Gregg 200 N Duncan St Marine, IL January 29, 2010 August J. Matteis, Jr. Gilbert LLP 1100 New York Ave, NW Suite 700 Washington, DC Dear August, Enclosed you will find information on my finding after reviewing the original flood estimate produced by State Farm Insurance and relevant materials As you know, I am a FEMA-certified flood adjuster with more than a decade of experience in evaluating and adjusting flood claims under the National Flood Insurance Program ( NFIP ). My education and experience are listed in my curriculum vitae, attached here as Exhibit A. I examined the file for the claim for Mr & Mrs McIntosh and information provided in the flood file, pictures of the home, and the other materials cited in Exhibit B (references). During that review, I noted that the adjuster had reported a five-foot water line in the home. I further noted that an engineer had been requested to assess structural damage. Based on those facts, the adjuster presumably was not attempting to assess the cause or extent of structural damage to the home by himself, but was only documenting flood damage below the reported five-foot water line. I reviewed the adjuster s report for consistency with those assumptions. Many of the items identified by State Farm should not have been submitted to the NFIP for payment. The adjuster also allowed excessive amounts for the repair or replacement of many items. Accordingly, the State Farm submission for NFIP payment does not properly support a payment of $250,000, and the report contains numerous line item entries not consistent with flood damage if one accepts the adjustor s apparent method of analysis. The following is a list of items that should been omitted, in whole or in part, from an assessment of damage caused by a five-foot water level. A. Items that do not exist: 5 bedrooms The house has only four bedrooms, not five.

2 Case 1:06-cv LTS-RHW Document Filed 01/29/2010 Page 2 of 9 A 16' garage door, garage door trim, and steel trim Pre-storm photographs of the home show that the house did not have a garage. Stucco, 3381 square feet Pre-storm photographs of the home show that the house had no first-floor stucco; the siding was all brick. A masonry fireplace Pre-storm photographs of the home show a regular fireplace, not a masonry fireplace. Faux painting, 8985 square feet Pre-storm photographs of the home do not show faux painting. Bi-fold doors Pre-storm photos of the home do not show bi-fold doors on the first floor. Medicine cabinets in the bathrooms Pre-storm photos of the home show that there were no medicine cabinets; the mirrors are static against the walls. A range hood Pre-storm photographs of the home do not show a range hood in the kitchen. A heat pump Pre-storm photographs of the home do not show a heat pump. B. Items with no basis in the file for inclusion: Foundation Replacement of concrete slab on grade This house appears to be elevated with a slab, but the slab appears to have no damage. Therefore, there should be no coverage. Gravel Gravel is not required, since there was no damage to the slab. Visqueen Because the foundation, gravel, and footings were not damaged, and no visqueen was observed in any of the photographs, visqueen is not necessary. Footings These were not damaged. Concrete wall Appears intact and not damaged by the flood water. Rough Framing 2 x 6 stud walls The square footage allowed appears excessive. 2

3 Case 1:06-cv LTS-RHW Document Filed 01/29/2010 Page 3 of 9 Sheathing/plywood 1/2 cdx The square footage allowed appears excessive. 3/4 T&G sheathing, joist 2 x 10, 2 x 10 lumber, 5/8 cdx plywood, Hip/Valley, and Rafters These are all roofing or ceiling items and nothing in the file documentation supports inclusion. Exterior Finish Roof Felt, attic vent, roof vent, soffit/fascia, gutter/downspout, fluorescent 2 tube 8 light, and insulation batt 10 These are all roofing items and nothing in the file documentation supports inclusion. Brick Veneer An engineer s opinion would be required to make a wind/flood causation determination. Moreover, there is also a likely subrogation claim to be made. Brick ties should have been placed in every 6th row of bricks and along the studs at 16" on center. Post-storm pictures show no ties in many locations. The adjuster should have contacted a supervisor to advise of a possible subrogation claim against the contractor, which would further reduce or eliminate the allowance for this item. Windows 36 windows There do not appear to have been 36 windows in the house so impossible that 36 would have been damaged. The adjuster apparently has allowed window replacement for the entire house, but nothing in the file documentation supports inclusion beyond 1st floor windows. The NFIP does not allow for matching of items. Patio doors Patio doors were not observed. Four exterior doors were allowed for the exterior finish. The adjuster apparently also has not accounted for the possibility that windows were broken by storm winds or wind blown debris before any flooding reached the house. Roofing All items A five-foot water level would not have reached the second floor of the property. Nothing in the file documentation supports inclusion of these items. Electrical Wiring The wiring allowed appears excessive. The adjuster has allowed for 4345 square feet of rewiring, which apparently includes the second floor. Nothing 3

4 Case 1:06-cv LTS-RHW Document Filed 01/29/2010 Page 4 of 9 in the file documentation supports inclusion of wiring above the first floor of the house. Meter Base Main Disconnect this item probably is owned by the power company, and there should be no allowance for this item. Outlets and switches The outlets and switches allowed appear excessive. Nothing in the file documentation supports inclusion of outlets and switches above the first floor of the house. Exterior light fixture, smoke detectors, light bars, and light fixtures These items are all above any possible water line. Nothing in the file documentation supports inclusion of these items Breaker box the breaker box is above the likely water level in the house and should probably be removed from the estimate. Heating / AC Ductwork system This is a ceiling item. Nothing in the file documentation supports inclusion of these items. Furnace Vent and rain cap Nothing in the file documentation supports inclusion of these items. Floor Covering Slate / high grade This material could be cleaned, re-sealed, and re-grouted. It would not need to be replaced. Interior Finish Mortar bed for tile The adjuster already provided for replacing tile. The cost of mortaring is included in the tile cost. In addition, the tile probably could have been cleaned rather than being replaced. Interior Doors The floor plan and photographs show 11 interior doors, not 18. Closet rod, shelving, insulation batt, 10 and 4, painting, and seal/prime walls and seal/paint walls The allowance appear excessive. Flue cap, fluorescent 2 tube 4 lights, crown molding, light fixtures, and security system, and crown molding Nothing in the file documentation supports inclusion of these items. These items are generally not consistent with a 5 ft. flood line. 4

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6 Case 1:06-cv LTS-RHW Document Filed 01/29/2010 Page 6 of 9 Joe Gregg 200 N. Duncan St Marine, IL Education Madison High School Madison, IL Diploma Professional Experience Belleville Area College Granite City, IL Business Classes NFIP Training 1/2/99-12/31/2001 Psychometric Systems Golden, CO Construction Coordinator Large Construction of Cooling Towers for Power Plants Bellmon Adjusters Flood Adjuster 4 years Part Time 4 years Full Time Hurricane Isabel Hurricane Ivan Hurricane Frances Hurricane Jeanne Hurricane Charley Hurricane Katrina Hurricane Wilma Hurricane Ike Numerous Inland Flooding Present Simsol Insurance Services Flood Adjuster Hurricane Wilma 1/2006 North West Flooding 6/2006 New York Flooding 9/2006 Rockford, IL 4/2007 NorthEaster 8/2007 Rockford, Il 6/2008 Cedar Rapids, IA 9/2008 Northern Illinois ( Ike ) 3-5/2009 N. Dakota 5/2009 Missouri 1998 NCSI / NFIP San Juan, PR Examiner Hurricane George 2007 Pilot Cat Adjusting Allstate Certified Property Adjuster

7 Case 1:06-cv LTS-RHW Document Filed 01/29/2010 Page 7 of CEA California Earthquake Authority Certified Adjuster 2008 Texas Adjusting School All Lines Adjusting Languages Fluent in English and Spanish Adjusting Programs Simsol Xactware NFIP Certifications: Residential, Mobile Homes, Small & Large Commercial No prior retention as an expert in litigation

8 Case 1:06-cv LTS-RHW Document Filed 01/29/2010 Page 8 of 9 Exhibit B References In drafting my report, I relied on the following materials: 1. Pictures taken at the scene before and shortly after Hurricane Katrina, which include a. GBEO-Forensic Pictures and documents from Forensic Analysis & Engineering Corporation. The file labeled GBEO Forensic includes a diagram of the house with notations where specific pictures were taken, which may be helpful b. Photos from Flood Claim file Pictures from State Farm, taken as part of the flood investigation; c. Photos from Wind Claim file Pictures from State Farm, taken as part of the wind investigation; and d. Produced by McIntosh (2 folders) Pictures provided by the homeowner, including pictures of the property before its destruction. 2. State Farm s flood claim file please note that State Farm used Xactotal to produce its itemized listing of damage; as a result, its itemized does not match the actual home; 3. State Farm s homeowner claim file; 4. An engineering report by Brian Ford, who first was tasked with assessing the McIntosh property; and 5. An engineering report by Jack Kelly, who was subsequently sent to assess the McIntosh property. 6. Expert Report of David J. Favre, Sr., submitted on January 29, 2010, in U.S. ex rel. Rigsby v. State Farm Mutual Insurance Co. 7. NFIP-Dwelling Form Standard Flood Insurance Policy 8. NFIP Memoranda W04020 and W Telephone call with James Leahy, Plans Examiner for the City of Biloxi, MS. 10. Telephone call with P. Miller at Richard Brick Company in Edwardsville, IL.

9 Case 1:06-cv LTS-RHW Document Filed 01/29/2010 Page 9 of 9 Joe Gregg - Rates Service Rate Type Standard $ Per Hour + Expenses Testifying $ Per Hour + Expenses