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Insurance companies could save millions with one change

For years I have been talking about how insurance companies could save a lot of money.  Usually they try to do this at the cost of contractors out there trying to make a living but there are other fundamental shifts in thinking that could save them a lot of money.  Today I want to talk about one of them, mitigation company vs. reconstruction company.

In the restoration industry there are a lot of people in the industry that own companies that do water restoration and reconstruction.  In my opinion, this is a huge problem and the cause of many needless cost overruns.  Here's two scenarios to illustrate my point.

#1 fresh water leak occurs and the insured calls a general contractor they know who also does water restoration. The contractor comes in and convinces the insured that everything that is wet needs to be removed.  So they proceed to remove drywall 2 feet high, baseboards, carpet and pad, cabinets, door jambs, etc.  So when they start to dry all they have left to dry is studs.

#2 fresh water leak occurs and the insured calls a company that specializes in mitigation only.  They come in and see solid wood baseboards, plywood cabinets, carpet and pad that has only been wet a few hours and they tell the insured that while they may have to remove some toe kicks under the kitchen cabinets that they will be able to dry the rest of the structure in tact. This can be done through the use of quality water extraction tools, axial air movers, and highly advanced low-grain refrigerant dehumidifiers.

Which scenario is going to cost less to get back to pre-loss condition?  Of course #2 is, however there are so many construction companies that can not make a decent living without getting water restoration jobs to fuel their construction company that drying is becoming a dying art.  There is no incentive to dry an item in a home if you make money off of pulling it out and replacing it.  Most of these companies have crews they need to keep busy and drying a whole house intact doesn't help keep the crews busy.

What I think needs to happen is the industry needs to have only mitigation companies and only reconstruction companies.  Both are needed, the problem comes in when one company does both.  It's a conflict of interest and should not be allowed to occur.  Implementing this would be difficult and hard to police and enforce but if it did occur it would save insurance companies millions which would lower all our premiums.  I also understand that this is America and you shouldn't be able to tell companies that you can or can not do stuff like that so it will probably never happen.

However, with today's advancements in drying equipment, training, and industry standards drying structures completely intact has been possible for over 10 years now and we still have a large portion of the restoration industry that refuses to do it.  Change will continue to be slow until more insurance companies start looking for companies that can dry an entire structure intact rather than reconstruct it.

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Differences in Refrigerant dehumidifiers

When talking about refrigerant dehumidifiers, there are two types.  There are standard dehumidifiers and there are Low Grain Refrigerant (LGR) dehumidifiers.  LGR’s are different from standard grade refrigerant dehumidifiers because they are much more energy efficient and the way they are built means they can pull more water also. LGR dehumidifiers use a double cooling system to lower the moisture laden air temperature once inside the dehumidifier so more condensation can form on the internal cooling coils. As condensation builds up on the coils, the water will drip in to a collector pan and then drain down into a discharge pump, or a hose can be run directly down into a floor drain.  LGR dehumidifiers provide the best moisture removal for refrigerant dehumidifiers. These dehumidifiers  produce air that is generally about twenty degrees hotter than when it entered the dehumidifier.  The air will also be dryer and with less moisture than standard refrigerant units.

Dehumidifiers For All Occasions

Whether you have a basement, a museum, a library, a manufacturing business, an indoor pool, or just need to paint your race car in a dehumidified environment there is a dehumidifier designed to fit your needs.  Since not all environments or the same you can't expect all dehumidifiers to be the same.  Also, in the world of dehumidifiers the size of the unit doesn't always mean that it is better or worse than another unit.   By this I mean you may have two different dehumidifiers with one being smaller than the other and the smaller one may be more energy efficient and pull more water.

When figuring what kind of dehumidifier needed and how many there are many factors that can go into this calculation.  First is how many cubic feet of air do you need dehumidified, what is the average temperature of the area, is the area already heated and/or cooled, how many people live or work in the area, how many doors are in the area, how often are those doors left open, what other activities happen in this space, and more.  These are all things to take into account when trying to figure out your dehumidifier needs.  This could also determine whether or not you need a desiccant dehumidifier or a low grain refrigerant dehumidifier.

When you are unsure about which way to go, it is always best to call a professional who can help walk you through the process.

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Sizing Indoor Swimming Pool Dehumidifiers

Sizing a dehumidifier to a particular space to be dried is crucial to how well that dehumidifier(s) will work.  An undersized dehumidifier will not be able to keep up with the moisture load of the air you want dried and thus you will still have problems and you will be dissatisfied with your purchase. Since not all dehumidifiers are made the same nor operate the same it is important to have one that will do the job you intend it to do.  Whether it is a small residential indoor spa area or a large indoor Olympic sized swimming pool we can help you get the correct drying equipment the first time.

For indoor pools and spas a dehumidifier is crucial to reduce the humidity and increase the comfort and relaxation that comes with a pool or spa.  However, this dehumidifier needs to be able to stand up to the corrosive effects of chlorine and high humidity for years.  This is where we can help.  Since we own and operate a water restoration company as well we understand how to size dehumidifiers correctly to different structures.  We have a swimming pool calculator that will help work you through the process of figuring out which dehumidifier and how many you will need.  In an indoor swimming pool you will also need a small amount of exhaust air out of the structure.  This will help with water vapor removal as well as putting a slight negative pressure on the space to help eliminate chlorine odors.

You can start filling out as much of the information as possible on the swimming pool calculator and when you get stuck (and you will unless you are an engineer) you can call us and we will get you in touch with our engineer, at no cost to you.  Once you have worked through that with the engineer then we can get you the equipment you will need to have the best indoor pool environment for years to come.   We are here to make the process simple and to get you the right equipment the first time.

Professional Drying Equipment is owned and operated by Pearson Carpet Care, LLC in Humble, TX. They have been in the drying industry since 1992 and have been a distributor of drying equipment since 2001.  They can be reached at 281-548-7200.

Drying carpet and pad in place

Since 2002, my water restoration company has been able to dry carpet and pad in place without pulling it up. However, I am still constantly amazed at how many companies still choose not to invest in quality equipment and training of their employees to be able to do this. Even though all the classes in our industry teach that it can be done and the industry standards support it, there are still only a handful of companies in major cities across the U.S. that insist on drying carpet and pad in place.

Personally, I think there are a few reasons. First is of course financial. It cost way more up front to buy low-grain dehumidifiers, axial fans, and a hydro-x with the vac-pac than it does to buy standard refrigerant dehumidifiers, centrifigual fans, and a carpet cleaning wand. Even though you can make more money on the drying with the more expensive equipment.

Secondly, is that there are tons of so called water restoration companies that are really construction companies that use water restoration as a way to get more reconstruction jobs. It does not benefit these types of companies to dry anything. It only benefits them to replace things in a structure so that they can stay in business.

Third, insurance companies can change this trend if they wanted to by the way they pay, but they haven't done it. Here's what I mean, if insurance companies stopped paying for the use of standard dehumidifiers on jobs, then companies would be forced to buy good equipment. While this alone will not weed out these companies that do not dry anything it will be a start.