HomeMy WebLinkAboutMidwest Claims - Nachand Field House#:
~;: ,5 ~~
Jg r*2.
N ~~~
/ ,:=.
MIDWEST
CLAIMS SERVICE
1700 Opdyke Court
Auburn HiIIs, Michigan
48326
(248) 371-3100
(800)225-6561
(248) 371-3091 fax
www. midwestclaims.com
April 15, 2009
CERTIFIED MAIL -RETURN RECEIPT REQUESTED
Ms. Peggy Wilder, Clerk /Treasurer
City of Jeffersonville
500 Quartermaster Court
Jeffersonville, IN 47130
Re: Program:
Insured:
Claim Number:
Date of Loss:
Policy Number:
Policy Dates:
Dear Ms. Wilder:
Municipal Insurance Alliance
City of Jeffersonville
IN6 137065
9/14/2008
PKG80210163
08/06/2008 to 08/06/2009
U.S. Specialty Insurance Company (hereinafter "the Company" or "USSIC").has
requested and authorized Midwest Claims Service to adjudicate this claim on its behalf
We acknowledge receipt of a letter addressed to you from Timothy Gettelfiriger of
Structural Services, Inc. and your request that we .review the letter as to the cause of the
damage to the roof of the Nachand Field House.
Please be advised that we maintain. the- position that there is no coverage for
replacement of this roof under your policy with "USSIC" for reasons stated in our letter
dated November 25, 2008 which is incorporated. herein by reference and for the reasons
stated in this letter. .Coverage for this claim is reviewed pursuant to your policy number;
PKG80210163, with the policy dates of 08/06/2008 to 08/06/2009.- The Nachand Field
House building is located at 601 East Court Avenue, Jefferson, Indiana, with a building.
limit of $2,652,920.00, a content limit of $51,500.00, and a property deductible of
$2,500.00.
Upon receipt of the letter from Structural Services, Inc. we reviewed the opinion as to
the cause of the damage to the roof. Mr. Gettelfinger was. of the opinion that the wires
perietratirig the roof membrane were actually fasteners once used to secure the roof system
to the wood deck and that the penetration was patched after the wind event. Because_of the
intensity of the wind, some fasteners were dislodged and penetrated the roof while some
are bearing against the roof membrane as noted in Donan's report.
A SUBSIDIARY OF HCC INSURANCE HOLDINGS, INC.""
However, Mr. Arnold of Donan Engineering advised that the wires he observed
penetrating the EPDM membrane were not insulation or membrane fasteners. The metal
protrusions had no threads. Fasteners used to secure roof insulation and roof membranes
are typically # 12 or # 14 screws. Screws used to secure roofing material have fluorocarbon
coating to prevent corrosion. As can be seen in the photographs contained in the Donan
report, the entire surface of the wire is corroded. Sealant that had been placed around the
metal wires appeared to predate the September 14, 2008 wind event.
Mr. Arnold pointed out that Mr. Gettlefinger offered no explanation as to how
individual fasteners could be ripped from the structural deck and become inverted so that
they puncture the roof membrane without any visible damage to the roof membrane.
Additionally, Mr. Gettlefinger does not comment on the obvious EPDM membrane
shrinkage documented in the Donan report which is evident throughout the roof. Flashings
are- tented away fromi the walls to the point of tearing due to the stress. Prefabricated pipe
flashings have been pulled sideward by the shrinking of the roof membrane. Older
neoprene flashing has been stretched and torn by the shrinkage. Numerous repairs of
various ages were noticeable along the entire perimeter.
According to our expert, EDPM shrinkage is a known deficiency and is well
documented in the literature. If wind had torn the roof membrane and flashing from the
roof and parapet walls, there would be excess membrane visible along with tears or rips.
Additionally, if the condition of the roof was not defective, any wind damage would likely
have been repairable.
Midwest Claims Service maintains that the need to replace the roof of the Nachand
Field House results from the age and deterioration due to shrinkage of the EPDM and not
due to a covered cause of loss. Midwest Claims Service maintains that we will be unable
to consider replacement of the roof as part of this loss.
"USSIC" trusts that the City understands its coverage position. If the City has any
questions or comments, please do not hesitate to contact us. Similarly, if the City believes
that "USSIC" is incorrect in any respect or wish to bring any matter to our attention, please
db not hesitate to do so. "USSIC" is prepared to consider` additional information and
reassess its position should the circumstances so warrant.
Sincerely,
~~ ~-P-~
Sharon DePriest, AIC
Claims Supervisor
Cc: Municipal Insurance Alliance
Pepper Cooper /Maverick Insurance.