Sponsored By:
Solutions
to make your business more profitable, your employees more
effective, your technology more current and your work more
rewarding.
Executive Report
Got Change?
Change is exciting, whether it happens by plan or when it hits
us like a bucket of ice water. While we may not always like the
outcome of particular changes, the process itself keeps us mentally
stimulated and creative, and can ultimately produce better results;
if, that is, it is handled properly.
RIA is about to launch another change that will impact our
members for the better. By the time you read this issue of
NewsBreak, we expect to have implemented a new online
registration service for the 2007 convention ( March 13 - 17 in Orlando, Florida). This
process will allow members to register for the convention, provide
critical information to the staff, and streamline the data gathering
process so there will be fewer errors. Because of this is software change, there may be an occasional
procedural hiccup as the process becomes fully effective. We beg
your indulgence as we navigate this learning curve. However,
since this service offers such potential for significant
improvement, we are fast-tracking the
implementation.
This seemingly small change is actually a result of a more
significant one to come. Since last fall we have been redesigning
the RIA website. Our goals for the new site are to communicate more
clearly with our members, to interact more effectively with visitors
to the site, and to move towards a seamless union between RIA and
its members, with the website as our meeting point. Because the
convention is our most significant annual event, we've accelerated
the introduction of this new service. Other features to come include
the updated RIA bookstore, maintenance of continuing education
credits by individual advanced designees, and encrypted and
password-protected access by members to their individual
records.
We hope you'll find that these changes improve how you interact
with RIA. Please let us know how they work for you. It's our
ongoing goal to continually improve RIA’s value to you and to the
industry.
Don Manger
Executive Director
RIA NEWS
Breaking
News
RIA Briefs
Toolbox
Tips
Marketing Savvy
Product
Spotlight
On Press
Now
INDUSTRY NEWS
"Newly
Elected, His First Mess Is a Moldy One"
"Toxic Mold
Taints Housing Site"
"CFI/WFCA Stress
Advanced Installation Training"
"Katrina
Insurance Trial to Begin"
"Court of
Opinion: Amid Suits Over Mold, Experts Wear Two Hats"
"The
Aftermath"
"Insurers Build
Record-High Surplus, Lower Non-Coastal Rates After Hurricane
Respite"
"Downtown
Pascagoula Is Coming Back New and Improved"
"Northwest Storm
Losses Could Top $500M: AIR"
"How to
'Winterize' Your Carpets"
"Students Could
Soon Breathe Easier"
"Meth Lab Bill
Mandates Disclosure"
"EPA Drops Plan
to Cut Frequency of Toxic Chemical Reporting"
"Bamboo Goes
Mainstream"
"Dealing with
Death"
"Swiss Re
Estimates 2006 Losses"
"Beyond Exposure
Modeling"
RIA NEWS
Breaking News
Jury Finds State Farm Liable; Company
Expresses Disappointment
A jury awarded $2.5 million in punitive damages to a couple who
sued State Farm Fire & Casualty Co., after Hurricane Katrina
destroyed their home, and the insurer refused their claim. This
decision could benefit hundreds of homeowners who have challenged
insurers for rejecting billions of dollars in storm damage
claims.
The jury verdict was handed down only hours after a verdict
from U.S. District Judge L.T. Senter, Jr., found State Farm liable
for the $223,292 claim for damage caused by Hurricane Katrina to the
Biloxi, MS, home of State Farm policyholders Norman and Genevieve
Broussard.
State Farm Insurance Companies expressed surprise and concern
after the ruling by U.S. District Court Judge L.T. Senter over the
court case, Broussard v. State Farm.
“We did not expect this decision,” said Kim Brunner, executive
vice president, secretary, and general counsel for State Farm.
“Testimony of expert witnesses showed that damage to the Broussard
home was overwhelmingly caused by water and not wind.”
Judge Senter found State Farm failed to offer adequate evidence
to substantiate its view that the damage to the Broussards’ home was
caused by water and not wind. He further said that the Broussards
only needed to prove a direct physical loss.
“The ruling is inconsistent with insurance contract and
Mississippi law”, Brunner said. State Farm also expressed
disappointment with the jury’s finding the company liable for
punitive damages in the amount of $2.5 million.
The company says an appeal to this decision is likely.
Federal Judge Sends Mississippi Flood Suit Back to State
Courts
A federal district court judge recently ruled in support of a
suit filed by the Mississippi attorney general filed against
insurers for flood losses resulting from Hurricane Katrina. The suit
addresses the issue of whether cases should be heard in the
Mississippi state courts.
U.S. District Court Judge L.T. Senter, Jr. ruled that an
earlier decision by U.S. District Court Judge Tom S. Lee was correct
in concluding a suit based on flood claims ought to be determined by
the ensuing state courts.
Mississippi Attorney General Jim Hood is requesting that the
courts compel insurers to cover damages resulting from Hurricane
Katrina in a suit brought against five insurers.
Judge Senter’s findings do not substantiate or refute the
merits of the lawsuit.
The five companies named in the lawsuit are State Farm Fire and
Casualty, Allstate Property and Casualty Insurance Company, United
Services Automobile Association, Nationwide Mutual Insurance Company
and Mississippi Farm Bureau Insurance Company.
Shaw Amends Residential Warranties
Shaw Industries recently amended its residential carpet
warranties to require carpet manufactured after Jan. 1, 2007, use
only carpet cleaning products and equipment that have been awarded
the CRI Seal of Approval.
Beginning on January 1, 2008, the
company will also require the use of IICRC (Institute of Inspection,
Cleaning and Restoration Certification). Firms must now have at
least one IICRC certified technician on all job sites, carry both
general liability and workers compensation insurance (where
required), have an approved consumer complaint policy, must have a
business license and must agree to adhere to the IICRC code of
ethics.
The new requirements are also stipulated in Shaw’s residential
warranty booklet covering its Three, Four and Five Star warranties,
under “Homeowner Obligations”.
The CRI Seal of Approval Program was developed to test and
accredit product performance and equipment used for carpet cleaning.
The CRI program offers consumers a prompt and easily obtainable way
to locate products that work well and do not damage their carpet.
Mississippi Official Reports Hurricane Katrina Settlements
Reached
Mississippi deputy insurance commissioner, Lee
Harrell, says that the state is in negotiations with “almost all
insurers in the state,” amid simultaneous reports that State Farm is
approaching a mass settlement of Katrina homeowners’ law
suits.
The state’s mediation efforts have already settled
approximately 5,000 disputes between insurance carriers and
homeowners filing Katrina claims.
In areas afflicted by the
storm water surge, despite damage resulting from winds, insurers
said claims were repeatedly barred by flood exclusion language
incorporated into homeowner policies.
State Farm spokesman,
Phil Supple, in an e-mail statement, said the company had about
84,000 claims in Mississippi and has to date paid out $1.1 billion.
State Farm has close to 800 Katrina lawsuits
pending.
According to The Associated Press,State Farm is
close to settling 600 of those actions for hundreds of millions of
dollars, in what could prove to be an industry
precedent.
Allstate Prepares to Drop Coastal Homes
in Carolinas
The nation’s second largest home and auto insurer,
Allstate Corporation, recently reported plans to drop coverage for
16,000 homeowners on the coast of North and South Carolina in an
effort to cut hurricane risk.
Allstate also said the company
plans to stop writing new policies in coastal areas of Maryland and
Virginia, but would not cancel coverage for current policyholders in
those states. The company also announced it would stop writing new
homeowners' policies in Connecticut and New Jersey.
The
company attributes the plans to drop coverage to an effort to reduce
exposure to hurricane-prone areas as it seeks to avoid a repeat of
2005, when it endured close to $3.1 billion in catastrophic losses
from Hurricane Katrina and other Gulf Coast storms.
In
statements issued to the media, Allstate said, "Allstate has taken
incremental steps to manage its exposure to catastrophes, including
the purchase of reinsurance and underwriting
changes."
OSHA Sued by Labor Groups Relating to PPE
Rule
The U.S. Department of Labor is being sued by two labor groups,
for failing to issue a final rule requiring employers to pay for
employees’ personal protective equipment.
The AFL-CIO filed
the suit in the U.S. Court of Appeals for the District of Columbia.
The United Food and Commercial Workers International Union alleges
the government’s failure to issue the standard proposed in 1999 by
the Labor Department’s Occupational Safety and Health Administration
is endangering workers.
In a written statement announcing the suit, UFCW International
President Joseph Hansen said, “Nothing is standing in the way of
OSHA issuing a final PPE rule to protect worker safety and health
except the will to do so."
III Reports Decline in Insurance Rates for Most of
U.S.
Insurance Information Institute reports rates for homeowners,
auto and commercial insurance are expected to decline in most of the
United States this year, but will continue to rise in storm “hot
spots.”
The insurance industry group attributes the uneventful 2006
hurricane season in the U.S., to property/casualty insurers
accumulating a combined reserve of $55.7 billion.
Insurance Information Institute President Robert Hartwig said,
"Insurers took advantage of last year's respite to fix the roof
while the sun was shining."
According to Hartwig, the overall reserve has grown by almost
$57 billion since 2005 and now stands at $481.5 billion. However,
the size of the reserves is misleading, since a storm the size of
Hurricane Katrina hitting a major city could cause up to $100
billion of damage.
Weather forecasters are predicting above-average hurricane
seasons over the next 15 to 20 years, and the potential risk from
hurricane buildup in costal areas has insurers bolstering
reserves.
Florida Modeling Firms to Release Hurricane Loss
Projections
Florida House of Representatives Speaker, Marco Rubio requested
that four catastrophe modeling firms release copies of their
hurricane loss projection models, as well as the factors and
assumptions behind them, "including proprietary information,"
immediately.
The adjuration comes as Florida gears up for this week’s
special legislative session dedicated to insurance.
Demand letters were sent to Boston-based AIR Worldwide;
Oakland, Calif.-based EQECAT Inc.; Raleigh, N.C.-based Applied
Research Associates Inc.; and Newark, Calif.-based Risk Management
Solutions Inc., and Rubio also requested the same information from
Florida Insurance Commissioner Kevin McCarty.
All of the parties have agreed to the release of their models.
The voluntary release precludes the House from having to issue
subpoenas for the information.
Research Institute Adds Six New Members
Momentum continues to build for the Cleaning Industry
Research Institute (CIRI), as seven organizations have joined since
ISSA/INTERCLEAN 2006.
"We're excited that these new members see the value of
belonging to our Institute," noted Jim Harris, CIRI's Chairman of
the Board. "For example, two organizations joined because of their
focus on education and recognition of the importance of
science-based information for proper training."
The new CIRI members include:
Aramark: a global leader in professional services,
providing award-winning food, hospitality, facility management
services and high-quality uniform and work apparel. Aramark ranked
as number one in its industry among FORTUNE magazine's 2006 list of
"America's Most Admired Companies" and has been consistently ranking
as one of the top three since 1998.
AlturaSolutions Communication: a communications and
corporate communications firm that works exclusively for Jansan,
foodservice and other building-related manufacturers and
organizations. Its specialty is educational, how-to articles that
skillfully discuss benefits and features of clients' products and
services, all the while educating the end-user.
RIA: The Association of Specialists in Cleaning and
Restoration, Inc. is the trade association for the restoration
industry. RIA's worldwide membership includes companies and
professionals who are the leading providers of professional
cleaning, remediation, and catastrophe restoration services. RIA
publishes the monthly magazine Cleaning & Restoration and
offers training and certification programs that are recognized as
the most comprehensive in the industry, such as Certified Restorer®,
Water Loss Specialist®, Certified Mechanical Hygienist®, and
Certified Rug Specialist®, Certified Fabric Specialist® and
Certified Mold Professional®.
Enviro-Solutions: a manufacturer of environmentally
superior cleaning products dedicated to providing significant,
relevant added value in terms of performance, safety and health
benefits with no sacrifice to product performance or pricing. Its
goal is to provide products that will compete with conventional
cleaning products while being safer to the user and workplace
environment.
Sensible Life Products: dedicated to being the best in
the world at providing people and industry with the safest,
sustainable and efficacious cleaning and disinfection products for
sensible, healthy living. The company has received substantial
industry, public & media attention, as well as widespread
recognition & awards for proving that disinfectants don't need
to be poisonous to be effective.
Triple S: a national distribution networking, sales,
marketing and logistics organization with 115 independent Jansan
Member-Dealers and three regional distribution centers across the
U.S. Triple S Member-Dealers focus on providing the
lowest total cost solution to today's cleaning and maintenance
challenges through expertise, education, and training . Through
their national logistics platform, Triple S has the capability to
service multi-location and national accounts.
New Publication to Target Restoration and Remediation
Industry
In a recent press release, BNP announced plans to launch a new
publication dedicated to the restoration and remediation industries.
Restoration & Remediation, a spin-off of industry
heavyweight ICS Cleaning Specialist magazine, is set to
premiere in spring of 2007. The publication will cover all aspects
of business as it relates to the restoration and remediation
industries. The semi-annual publication will explore techniques and
procedures used by industry professionals such as: litigation
concerns; claims and working with adjusters in the field; contents
restoration, thermography and more.
RIA Briefs
RIA’s 62nd Annual Solutions
Convention
& Exhibition in Orlando, FL
Education...networking…business growth – three reasons why you
can’t afford to miss RIA’s Solutions® Convention in Orlando, Florida . Solutions provides over 56 hours of
continuing education through four different tracks, and optimizes
your networking opportunities. Strengthen your company, broaden your
industry contacts and explore the latest tools for the cleaning and
restoration industry. The new team pricing options make it
cost-effective to bring your staff with you, so everyone benefits.
Known as the restoration industry association’s premiere
education event, the Solutions Convention and Exhibition has a lot
to offer those in affiliated specialties. Among those invited to
attend will be:
- Restoration professionals
- Textile experts (carpet & upholstery)
- Environmental specialists & consultants
- Attorneys
- Carpet cleaning contractors
- Mold remediation contractors
- HVAC professionals
- Insurance adjusters
- Building managers
- Industrial hygienists
- Rug specialists
The RIA Exhibition will feature nearly 115 booths with
exhibiting companies showcasing the latest tools and equipment that
restoration and cleaning professionals use today. From displays to
hands-on demonstrations, Solutions attendees get to do more than
just kick the tires…you get to “test drive” the equipment before you
buy it. Because RIA’s event hosts attendees from owners to crew
leaders, you’ll find the top suppliers and innovations at the
Solutions Exhibition.
RIA has announced the completion of the first step in a major
restructuring of its industry councils. "RIA has been in the midst
of an exciting transformation," said RIA President Brian Spiegel,
CR, "and this is another important change in RIA operations
implemented by the Board of Directors in 2006."
RIA councils support the association activities of its three
industry divisions: disaster restoration; environmental; and rug,
carpet and textiles. "The RIA Board realized the councils were not
being utilized to their full potential," said Spiegel. "This new
structure encourages individuals with unique expertise to
collaborate for the benefit of the entire industry."
The new structure is designed to increase volunteer
opportunities for RIA members on association committees and task
forces. "Previously, RIA functioned with essentially three
committees," said RIA Executive Director Don Manger. "The former
councils had little time to concentrate on matters of long-term
significance to the industry since members were consumed with the
intricacies of planning and executing programs."
Appointed to two-year terms, the council leaders have
considerable experience with RIA. Leading the RIA Disaster
Restoration Council will be Mike Goldberg, CR, of RestoreCore,
Harrisburg, Pa. Art Johnson, CR, WLS, of Canstar Restoration, Inc.
in Vancouver, B.C., will head the Environmental Council; and Tony
Legenstein, CRS, of Certified Carpet in Lancaster, Pa., will assume
the reins at the Rug, Carpet and Textile Council.
RIA Announces Expanded Fall Conference
RIA has also announced it will expand its annual fall
conference to incorporate all industry segments: disaster
restoration, environmental remediation, as well as the carpet, rug
and textile industry. Scheduled for October 23-27, 2007, at the
Hyatt Regency Orange County in Garden Grove, Calif., the event has
been recognized as one of the premier technical conferences in the
industry, incorporating practical, hands-on information and
management issues with tours of local facilities in the area.
“The fall conference has been a popular service for the
disaster restoration industry for a number of years,” said Don
Manger, executive director of RIA. “In 2006 the conference was
expanded with the addition of environmental programming. Based on
the enthusiastic response of the audience, it was a logical
extension to our rug cleaning division.”
RIA, which recently adopted a new mission statement mandating
that the organization provide leadership, support science, and
promote best practices for the cleaning and restoration industry,
has undergone a transformation in the past 12 months.
The Association has retooled its council structure, taken an
active lead on serious industry issues such as consumer freedom of
choice for insurance related repairs, and is expanding its services
and education offerings for members.
Return to
Headlines
Simple Simon ‘Sez: Easy Metric Conversion Tips
By Steven M. Spivak, Ph.D.
Increasingly in a global marketplace we see metric units,
either in addition to the
U.S. Measurement System measurements, but sometimes without
them. Here are quick and easy ways to remember approximate
conversions. They’re not exact, but will often serve the purpose.
- One inch is about 2.5 centimeters (cm) and a yard is slightly
less than one meter. The meter stick-length is just under 40
inches (actually 39.7), close to a yard.
- A pound is about ½ kilogram (kg), with about 500 grams (g) to
the pound.
- One quart and one liter are close to the same volume. A gallon
is thus four quarts and also (slightly less than) four liters. At
a liter gas pump, divide by four to approximate gallons to fill up
your auto.
- The usual wine bottle is 750 milliliters (ml), i.e. ¾ of a
liter or about ¾ of a quart. The double-sized wine bottle is 1½
liters. Alcoholic beverages are in metric units.
- To obtain degrees Fahrenheit (F) from Celsius or Centigrade
(C), multiply degrees C times two (or double it), then add 30.
Example 20 degrees C is roughly 70 degrees F by this
approximation; it’s actually 68 F.
- To obtain degrees Celsius or Centigrade (C) from Fahrenheit
(F), subtract 30 from the degrees F, and then cut in half (or
divide by 2). Example 100 degrees F is roughly 35 degrees C by
this approximation; it’s actually 38 C. Not far off.
- Finally, “A stitch in time saves nine” is a conversion worth
remembering.
Steven M. Spivak, Ph.D., is an RIA technical advisor in
textiles and floorcoverings, and understanding metric
conversions.
Marketing Savvy
Creating Good Content for an Effective
E-Newsletter
Many companies lack the in-house talent and marketing know-how
needed to generate effective email campaigns. A productive online
newsletter will have a successful click-through percentage and
continually generate new traffic for your newsletter.
Here are some tips to keep in mind as you outline your
company’s online newsletter:
- Use less HTML graphics and more plain-text.
-
Focus on value, clearly state benefits to the intended
client.
-
Grow your mailing list. Make sure your Web site includes a
way to sign up for the mailing list.
-
Avoid using a personal tone in your email message.
-
The subject line should state something definitive while
including helpful information.
-
Make addressing your customers’ needs and concerns a top
priority. Describe your customer service. Always remember your
newsletter is all about reaching your target consumer. When you
stop giving readers what they want, readers will lose interest.
-
Use incentives that give your customers a reason to click
through your e-newsletter.
-
Understand that the more specific your offers, the better
response from your readers. The more you know your target
audience, the higher your success rate will be.
-
Track your click-throughs for each link. This allows you to
determine the products your customers find of interest and what
products need to be revamped or removed.
-
Remember, the goal of an email newsletter shouldn’t be to
sell an item; the focus should remain on maximizing your
click-through rate! Return to
Headlines
Consumer Flyers
Keep your customers informed on a
variety of cleaning and restoration related topics with these
pocket-sized flyers. Written by the RIA technical staff, each flyer
provides the customer with an explanation of various problems
relating to cleaning and restoration. On sale now
for 50% off original price! Choose from over 50
titles.
Titles available (Please specify titles):
|
Abrash
Animal Stains
Backing Separation
Benzoyl
Peroxide
Carpet Installation
Cellulosic
Browning
Chewing Gum Removal
Code of Ethics
Color
Changes
Corn Rowing
Custom Made Rugs
Drapery
Damage
Dry Rot in Rugs and Furnishings
Dye
Bleeding
Flatwoven Rugs
Forgotten Spills
|
Haitian Cotton
Latex Decay
Leather
Upholstery
Mildew Myths About
Oriental Rug Cleaning
New Furnishings
Odors
Odors and Color
Problems
in Area Rugs
Painted Rugs/Bleeding Rugs
Protein Fires
Reappearing Stains
Ripples
Rug
Fringes
Rug Shrinkage
Sewer Backups
Shading
|
Shedding & Pilling
Silk Textiles
Smoke Damage
Soil Filtration Lines
Soils
Spot Removal
Static
Stubborn Stains
Sunlight Damage
Textile Insects
Texture Change
Thank You*
Vacuuming
Water
Stains
Yellowing
|
*Designed for distribution for residential and commercial
customers, this flyer addresses health and safety issues related to
carpet cleaning. Now available in Spanish.
Same Title: 100/$15
Full Set (100 of
each title): Set/$225
Thank You Flyers
Special Pricing
1000/$100
Order here:
Return to
Headlines
Here’s a look at what’s coming in the February 2007 issue of
RIA’s award-winning publication, Cleaning &
Restoration.
Training: Don’t Ignore the Soft
Skills
By John Tschohl
Exceptional customer service is foundational for a successful
business. When customers receive the help they need, they — and
their money — will return repeatedly to you.
The Power of Positive Relationships
By Scott Stamper, CR
It’s easy for managers to focus on their employees’ weaknesses,
but the greatest benefits come when positive behavior is
acknowledged and rewarded. Based on concepts introduced in Whale
Done!, learn how to improve the positive reinforcement you give
your workers.
Ethical Relationships – Part 2
By John Fox
Entrepreneurship and the American Dream have long been
intertwined, but the statistics for the failure rate of new
businesses are staggering. So what can you do to protect your
business from going under and, instead, help it to flourish in an
aggressive climate?
How to Protect Knowledge from Walking
Out the Door
Guess what George is taking with him?
By Pam Holloway
When a valued employee leaves your company or changes
positions, how can you safeguard against the loss of important
information? While you don’t need to capture everything everyone
knows, you do need to recognize what knowledge is important to the
success of your business and how to make sure you have access to
that information.
Water Damage to Electronics Contents, Evaluation &
Mitigation
By Lawrie Hollingsworth
In the wake of storms like Hurricane Katrina and Cyclone Larry,
many individuals have had to reckon with the power of water. Whether
it’s a major storm or a relatively minor pipe break, it is important
to differentiate how moisture and water will affect equipment and
its subsequent recovery.
Environmental/Restoration Conference Recap
By Patricia L. Harman
RIA’s first environmental conference packed days’ worth of
information into just a few hours. If you weren’t there, here’s a
quick synopsis of what you missed.
Effective Cleaning and
Health – Part 2
By Michael A. Berry, Ph.D.
From infections, pathogens, waste and the infamous Avian Flu,
the cleaning and restoration industry has its hands full with safely
and effectively addressing these very real issues. Accurate
information is essential to protecting you and your
employees.
Restoration Under Fire
By Patricia L. Harman
The hurricanes in Florida and along the Gulf Coast spawned a
number of unscrupulous businesses offering their “restoration”
expertise to property owners. Sometimes, even the “good guys” get
caught in the fallout. Here is the story of one RIA member who
learned this lesson the hard way.
Columns
Commentary
Your Most Important Asset
Technical Topics
How to Care for Leather Rugs and Flooring
Restoration Corner
When Sprinklers Sleep
Legal Briefs
Common Mistakes Employers Make and How to Avoid Them
Marketing Notes
Niche Marketing – or Avoiding 12-Gauge Mistakes
Business Briefs
Finding, Training and Keeping Good Employees Takes Constant
Effort Not a subscriber? Then visit http://www.RIA.org/buyersguide/index.cfm. Return to
Headlines
INDUSTRY NEWS
"Newly Elected, His First Mess Is a Moldy
One"
Houston Chronicle (12/17/07) P. A3; Skiba, Katherine M.
Newly elected Rep. Steven Kagen of Wisconsin investigated the
sub-basement of the Longworth Housing Office Building in Washington,
D.C., after learning that seven types of mold--including
Stachybotrys--were found there. Kagen, an allergist and
aerobiologist, donned a hazmat suit and was accompanied by a safety
specialist. Kagen believes mold growth has been curtailed by the use
of bleach, and he was satisfied that the room had been sealed to
keep the spores from escaping into other parts of the building.
However, Kagen was more concerned about asbestos-covered pipes, but
Office of the Architect of the Capitol spokeswoman Eva Malecki says
additional remediation for both the mold and asbestos is planned.
(Web Link)
Return to
Headlines
"Toxic Mold Taints Housing
Site"
Monterey County Herald (CA) (12/10/07) P. B1;
Hennessey, Virginia
In 2005, Marine Maj. Daniel Smith, Sr. found black mold growing
on a bedroom wall in the home he occupied with his wife and two
children in La Mesa Village in Monterey, Calif., while pursuing a
degree at the Naval Postgraduate School. Smith has since filed suit
against the Parks at Monterey Bay and property manager Pinnacle
Realty Co. for failing to properly maintain its housing, causing
personal injury and emotional distress, neglecting to disclose the
mold problem, and the loss of $30,000 in personal property. Tests by
Aero-Environmental Consulting showed 31,900 penicillium/aspergillus
spores per cubic meter in the master bedroom and 27,800 spores per
cubic meter in the children's bedroom, and the report accompanying
the results stated that the family should be relocated for
remediation purposes. Smith says maintenance workers sent out by
Pinnacle three days after he reported the mold attempted to
eliminate the fungus with bleach, and after cutting a hole in the
wall, said there was no evidence of excessive moisture.
Aero-Environmental countered those claims, finding elevated moisture
in the walls, which caused the company to recommend that a portion
of the wall be removed as well as the entire carpet. Smith also
notes that the Parks at Monterey Bay refused to relocate his family
until a request was made by an Army official, and the movement of
contaminated furniture into their new home resulted in a second
relocation. Additionally, Smith says his son's pediatrician blames
coughing and vomiting experienced hours after the hole was cut in
the wall on mold exposure, and both of his children must now receive
daily asthma treatments. Charles Warner, Smith's attorney, says
Smith hopes the lawsuit will improve management of military housing
by private companies, including Pinnacle, which oversees more than
15,000 units nationwide.
(Web Link)
Return to
Headlines
"CFI/WFCA Stress Advanced Installation
Training"
Floor Covering News (12/25/06) Vol. 21, No. 22, P.
5
Education is the key to improving the installation of floor
coverings, according to the International Certified Floor Covering
Installers Association (CFI) and the World Floor Covering
Association (WFCA). The two organizations are partnering with other
U.S. and Canadian groups to provide training to installers and sales
reps in an effort to boost customer satisfaction by reducing the
probability of problems down the road. The groups stress that
installers should not rely on their years in the industry, as new
products and installation techniques emerge every few years. "CFI
installers assure customers of guaranteed installation that will be
worry-free for years to come," CFI executive director John Namba
told attendees of the recent Hanley-Wood Remodeling Show in Chicago.
(Web
Link)
Return to
Headlines
"Katrina Insurance Trial to
Begin"
Chicago Tribune (01/09/07) Kunzelman, Michael
State Farm Fire & Casualty Co. could face two trials in
Mississippi this month if it is unable to settle claims out of
court. Recently U.S. District Judge L.T. Senter Jr. rejected a
motion by State Farm to move the first trial 300 miles away from the
Gulf Coast because the jury pool was allegedly "tainted by media
propaganda" regarding the way in which claims were handled by the
insurance industry. The judge noted that the insurer failed to meet
the legal burden of proof requirement to have the trial moved.
Meanwhile, the insurance carrier remains in negotiations with
Mississippi Attorney General Jim Hood to settle civil charges
related to its refusal to cover damage claims related to Hurricane
Katrina. State Farm reportedly paid out $1.1 billion in claims,
though damages related to flood and storm surge were excluded from
those payouts, which angered many homeowners. One proposed
settlement on the table would require State Farm to review denied
Katrina-related claims and make new settlement offers to each
policyholder, and any disputes arising from those offers would be
settled in arbitration.
(Web Link)
Return to
Headlines
"Court of Opinion: Amid Suits Over Mold,
Experts Wear Two Hats"
Wall Street Journal (01/09/07) P. A1;
Armstrong, David
Mold litigation flourished after the 2001 Texas jury verdict
awarding a family over $32 million in damages, but now, mold
litigation is fraught with controversy, particularly because an
American College of Occupational and Environmental Medicine (ACOEM)
position paper claims no evidence exists to link ailments to mold's
mycotoxins, which are released into the air. The society notes that
because the paper is the consensus of its members, the group does
not need to disclose who the authors are and what their role in mold
litigation has been, but investigations uncovered the fact that many
of those involved in the writing of the paper have often testified
for builders, landlords, and others fighting mold litigation. The
ACOEM paper has been used in multiple mold cases, and many defense
attorneys use it as a study based on evidence, though reality
suggests that it is harder to pin down the true effects of mold
spores that can be found in homes, schools, and offices. According
to Dr. Harriett Ammann, the ACOEM paper bases its opinions on
hypothetical exposure and toxicity and then jumped to conclusions,
rather than conducted scientific studies to determine if mold indeed
caused illnesses in those exposed. While some society members raised
concerns that the position paper did little to examine both sides of
the mold debate, the head of the project, Dr. Borak, claimed it
"would be inappropriate to add ad hoc reviewers who are highly
visible advocates for a point of view the draft position paper
analyzes and finds lacking."
(Web Link)
Return to
Headlines
"The Aftermath"
Claims (01/07) Gilkey,
Eric
The active 2004 and 2005 hurricane seasons kept restoration
companies busy, but now they must contend with a drop in business
tied to the relatively quiet 2006 hurricane season. Though five of
the nine named storms formed last year became hurricanes, most
fizzled out before they could make landfall. Experts believe
restoration companies that are part of a franchise are better able
to withstand a decline in business, as they take on tasks not
related to catastrophes. Disaster Kleenup International Services
President Dale Sailer actually thinks the slow hurricane season was
a good thing for business, giving the company a chance to determine
what was learned by Hurricane Katrina and where improvements can be
made. However, newcomers to the restoration industry might not fare
as well, especially considering the costs associated with
catastrophe work. Sailer notes that a number of companies purchased
a substantial amount of water mitigation equipment and now need to
make payments at a time of decreased revenue. This year, the
restoration industry must continue to contend with a shortage of
artisan contractors and other skilled trades people, as well as
insurance companies' cries for better itemized bills. Given that
predictions are being made for a busy 2007 hurricane season, Sailer
says it is important for restoration companies to be ready for all
levels of activity.
(Web Link)
Return to
Headlines
"Insurers Build Record-High Surplus, Lower
Non-Coastal Rates After Hurricane Respite"
Insurance Journal
(01/08/07)
The Insurance Information Institute reported that increases in
hurricane activity over the next couple of decades could devastate
the insurance industry, the economy, and other businesses, prompting
many insurance carriers to reinvest surpluses in their claims-paying
capacity. However, drivers, homeowners, and businesses have
experienced premium declines in recent months, although owners of
property along the coastlines have not. In 2006, insurers bolstered
their claims-paying capacity by $55.7 billion in the
property-casualty sector, and many of those investments were derived
from investment income or new capacity flowing into the market.
Insurance Information Institute President and Chief Economist Robert
Hartwig noted that without the surpluses gained by insurers, claims
payout would have been smaller in the aftermath of the hurricane
seasons. Hartwig also noted that profits were earned through careful
underwriting and lower-than-expected catastrophe losses. Moreover,
ratings firms expect larger reserve holdings to offset potential
losses at insurers, forcing carriers to be more careful with their
investments and policy portfolios.
(Web Link)
Return to
Headlines
"Downtown Pascagoula Is Coming Back New and
Improved"
Biloxi Sun Herald (MS) (01/02/07) P. A1; Baker,
Margaret
The downtown district of Pascagoula, Miss., will be better than
it was before Hurricane Katrina flooded many of its businesses,
according to community leaders. Merchants & Marine Bank's new
$7-million, 40,000-square-foot headquarters is leading the downtown
restoration. New businesses are opening up alongside those that have
returned, and numerous parks--including one behind City Hall--are
under construction. City manager Kay Kell says Katrina enabled the
city to move ahead with revitalization plans that were already in
the works.
(Web Link)
Return to
Headlines
"Northwest Storm Losses Could Top $500M:
AIR"
Business Insurance (12/19/06) Hofmann, Mark A.
AIR Worldwide Corp. reported that recent storms in the Pacific
Northwest could result in $500 million in insured losses, much of
which were caused by the 90 mph winds that swept the region. There
were reports of flash flooding in some areas as well, and the
storm's effects are likely to have stretched through Oregon and
parts of Montana.
(Web Link)
Return to
Headlines
"How to 'Winterize' Your Carpets"
CMM
Online (11/06) Jurecki, Dennis
Cimex-USA Vice President Dennis Jurecki underscores the
importance of winterizing carpets to guard against damage caused by
ice, snow, slush, salt, and sand. Jurecki says a heavy-duty walk-off
mat is useful in lowering the amount of debris coming indoors by 80
percent and protecting against excess moisture. He adds that
three-quarters of loose dirt and soil--including ice-melting agents
that can lead to discoloration--are eliminated by vacuuming every
day. Jurecki recommends spot cleaning to remove ice melters lodged
in carpet fibers and carpet encapsulation when a deeper cleaning is
needed. When opting for carpet encapsulation, he recommends a
durable, agitating scrubber with three rotating brushes to remove
oils and dirt from the carpet, which are then crystallized and
vacuumed up.
(Web Link)
Return to
Headlines
"Students Could Soon Breathe
Easier"
Grand Forks Herald (ND) (01/05/07) Ricker, Amanda
In Minnesota, the East Grand Forks School Board wants to spend
$7.5 million to upgrade ventilation systems and make other
improvements to boost indoor air quality and energy efficiency.
Superintendent Walt Aanenson has heard complaints from students
about the lack of fresh air and the coldness of their classrooms.
Officials cite the fact that the fresh air requirement imposed by
the Minnesota Department of Education is met by fewer than 30
percent of the district's rooms, and the absence of state funding
has prevented the standards from being enforced. While the cost
seems substantial, officials note that a portion of the sum would be
offset by lower energy bills. A representative from the company that
could be hired to undertake the upgrades will discuss the costs
involved at the board's next meeting, after which a decision will be
made.
(Web Link)
Return to
Headlines
"Meth Lab Bill Mandates
Disclosure"
Denver Business Journal (01/08/07) Buchholz, Jan
The Methamphetamine Laboratory Disclosure Act was implemented in
Colorado on Jan. 1, requiring home sellers to disclose whether their
properties had been used to manufacture the drug. Sellers who fail
to make the required disclosures face civil penalties, and buyers
can sue them for remediation as well as medical costs and legal
fees. The law requires contaminated properties to be cleaned by
licensed industrial hygienists, whose reports following the cleanup
must be approved by the county health department. Once the reports
are approved and the home is certified as having been cleaned,
disclosures are no longer necessary. The Colorado Association of
Realtors is urging its members to take caution when listing
properties that may be former meth labs, and the group is looking to
add meth labs to mandatory disclosure forms. Sen. Brandon Shaffer
(D-Boulder), one of the bill's sponsors, compares a meth lab with a
"toxic waste dump." People who come into contact with traces of the
drug left on surfaces throughout a home can suffer from eye and skin
damage, respiratory problems, nausea, vomiting, anxiety, and other
conditions.
(Web Link)
Return to
Headlines
"EPA Drops Plan to Cut Frequency of Toxic
Chemical Reporting"
Tampa Bay Business Journal (12/11/06)
Hoover, Kent
The U.S. Environmental Protection Agency has dropped its plan to
rollback the Toxics Release Inventory program through a series of
reforms that would have permitted businesses to file emissions
reports every other year, rather than on an annual basis. However,
the agency is still considering a proposal that would allow small
businesses to use a shorter disclosure form than their larger
competitors. Small businesses applaud the reform proposal, claiming
it would free up about 165,000 hours annually that would otherwise
be spent on paperwork.
(Web Link)
Return to
Headlines
"Bamboo Goes Mainstream"
Floor Covering
News (12/18/06) Vol. 21, No. 21, P. 23; Becker, Kerri
Bamboo hardwood floors are gaining popularity in the U.S. due to
their durability, affordability, and upscale appearance. Once
desired only by customers seeking a contemporary look with Asian
flair, Betsy Amoroso of Mannington Mills says bamboo has become a
mainstream product in recent years. New installation techniques have
made bamboo more resistant to stains, and new finishes inhibit wear.
Natural Cork CEO Philippe Erramuzpe adds that bamboo has fallen in
price by 35 percent during the last few years, mainly because more
and more manufacturers have added bamboo to their product lines.
(Web Link)
Return to
Headlines
"Dealing with Death"
Daily Record
(Maryland) (12/29/06) Llovio, Louis
Employees at the Maryland-based crime scene cleanup companies
Amdecon Inc. and Crime Scene Clean Up face many unusual challenges
in their work. They must use strong chemicals to cleanup the remains
of decomposed bodies or remove carpets and portions of ceilings and
walls that have absorbed blood. They must also contend with the
difficulty of providing grieving families with the cleanup bill,
usually around $3,000. There is some financial assistance available
through the Maryland Crime Victims' Resource Center, and cleaners
will oftentimes do the work at no cost if the family is in dire
financial straits. Louise Burkhardt of Fallston-based Crime Scene
Clean Up cautions against do-it-yourself jobs designed to save
money, as standards set forth by the U.S. Occupational Safety and
Health Administration, the U.S. Environmental Protection Agency, and
the Maryland Department of Health and Mental Hygiene must be
followed when disposing of biohazard waste and human remains.
(Web Link)
Return to
Headlines
"Swiss Re Estimates 2006 Losses"
Claims
(01/07)
Swiss Re will compile preliminary data in a report slated for
release this spring on 2006's loss estimates for the
property-casualty insurance industry. Total economic losses reached
$40 billion in the U.S. for the year, with worldwide
property-casualty insurance losses hovering around $15 billion. The
losses can be tied to earthquakes and windstorms, among other
events. A quiet hurricane season helped insurers post profitable
results in 2006, though winter storms and floods could cause
problems in the future. Swiss Re indicates that aircraft crashes and
major fires have been conspicuously absent from claims and adds that
potential earthquake threats to industrialized areas are always a
concern of the industry. There were just three events--two tornadoes
in the U.S. and a typhoon in Japan--that caused more than $1 billion
in losses in 2006.
(Web Link)
Return to
Headlines
"Beyond Exposure Modeling"
Canadian
Underwriter (11/06) Vol. 73, No. 11, P. 26; Rao, Guru N.
Catastrophe modeling, while often useful, should not be the only
tool in a property-casualty insurer's methodology for analyzing and
planning for risk. Over-reliance on technology can be a problem for
insurers that do not also have a comprehensive system that develops
processes and technological tools to assess the most important risks
the company can face and methods it can use to finance and respond
to those risks when they occur. First, insurers need to identify the
risks most likely to affect them; hurricane and other storm risks
are currently especially serious. Companies need to look at how much
exposure they have in a particular area, and how likely that
exposure is to be seriously affected by a storm or other
catastrophic event. Next, insurers need to look at the tools they
can use to more thoroughly analyze these risks; such tools are
available for a variety of different catastrophic risks, and vary
according to where in the world the exposure is. Insurers must also
have a strategic process for interpreting the results of a model's
analysis. In order to develop such a process, companies need to
understand the scope and limitations of their model, including the
effects on it of "small" coverages that can add up to major losses
in the event of a catastrophe.
(Web Link)
Return to
Headlines
© Copyright 2007 INFORMATION,
INC.
NewsBreak is another valuable service of RIA
International.
Masthead photos courtesy of
VanDam & Krusinga and Insurance Restoration Services.
|
January
2007
Sponsored By:
RIA
offers camaraderie with successful people and industry leaders and
is the largest repository of information readily shared in our
industry.
Save
50% off the original price on RIA products. Limited time offer!
Shop today and save.
See
what's happening on the restoration forum.
Let
RIA help lower your insurance premiums. Check out our new program
with Driscoll & Driscoll Insurance.
The
Guidelines is the respected standard for property
restoration.Purchase your copy here.
Subscribe
today to Cleaning & Restoration. The monthly technical journal
for professionals who choose to be on the cutting edge of
success!
Mark these dates on
your calendar today!
RIA Course Calendar & Information
Registration information is available on courses through
March 2007. To register, visit www.RIA.org. Future course
information will be place on line by January 31, 2007.
MARCH
12 RIA Mold Refresher Course
Buena Vista Palace Hotel & Spa
Orlando, FL
12-16 Solutions Convention
Buena Vista Palace Hotel & Spa
Orlando, FL
APRIL
26-27 Content Restoration Course
Baltimore, MD
MAY
11-12 Rug Repair Course
Emmanuel’s, Inc.
Seattle, WA
7-9 Mold Remediation Technician (MRT) Course
Greensboro, North Carolina
10-11 Mold Remediation Specialist (MRS) Course
Greensboro, North Carolina
15-18 Certified Restoration Technician (CRT) Course
Unsmoke
Stowe Township, PA
23-26 Going Green: Green Cleaning & Restoration
International Fabric Care Institute
Laurel, MD
JUNE
11-16 Certified Restorer (CR) School
Greensboro or Winston-Salem, North Carolina
21-23 Oriental & Specialty Rug 3-Day School
Koshgarians
Chicago, IL
JULY
10-11 Residential HVAC
Houston, TX
12-13 Commercial HVAC
Houston, TX
AUGUST
7-9 Mold Remediation Technician (MRT) Course
Sacramento, CA
14-17 Certified Restoration Technician (CRT) Course
Stowe Township, PA
SEPTEMBER
6-7 Content Restoration Course
Salt Lake City, UT
17-20 Certified Mechanical Hygienist (CMH) School
Wilmington, DE
24-25 Mold Remediation Specialist (MRS) Course
Kalamazoo, MI
27-28 Rug Repair Course
Zahipours, Washington, DC
OCTOBER
1-6 Certified Restorers (CR) School
Location: To be announced
16-18 Certified Mold Professional (CMP) School
Kalamazoo, MI
23 RIA Mold Refresher Course
Hyatt Regency Orange County
Garden Grove, CA
23-27 RIA Fall Conference & Exhibition
Hyatt Regency Orange County
Garden Grove, CA
NOVEMBER
12 –17 Water Loss Specialist Course
Hyatt Regency St. Louis at Union Station
St. Louis, MO
. |
 |
| How
will your company retain employees in 2007? |
|
|
RIA NewsBreak is an executive
summary of noteworthy articles pertaining to the cleaning and
restoration industry distributed monthly to the RIA
membership. Our editorial staff monitors nearly 7,000
newspapers, business publications, Web sites, national and
international wire services, and other periodicals and
summarizes significant articles into an easy-to-read
summary.
NewsBreak is another valuable service of RIA
International. |
|
9810 Patuxent
Woods Dr
Suite K
Columbia, MD 21046
Phone:
800-272-7012
Unsubscribe
| |
