The RRP Rule and Property Damage Insurance Claims

[ChrWright]

I came across a very interesting article this morning:

http://www.claimsmag.com/Exclusives/2010/1/Pages/Adjuster-Awareness-of-LeadBased-Paint-Issues.aspx?page=1

Even if the claim is being handled by an inside adjuster or claim representative, the claim file or coverage file almost always contains information about the age of the building. For a pre-1978 building, it is a simple matter for the adjuster to request a lead paint test before agreeing to the scope, extent, or cost of any damage, demolition, tear-out, or repair that might affect a painted surface.

Unless the damage, involving paint, to a pre-1978 property has been checked or tested and determined to be free of lead-based paint, the insurance company should (at minimum) do the following:


Request and obtain the results of a lead test.
Stipulate that no unnecessary tear-out or repairs proceed without clearance.
Determine if the owners/occupants have been provided with information about lead hazards.
Ensure that proper safety and containment procedures are allowed for in the estimate if lead-based paint is present.
Be certain that the contractor/vendor is properly qualified or certified for dealing with lead-based paint.


This article brings up the question of property damage claims and how adjusters will account for the additional costs in their settlement process. Who will be establishing the rates for lead safe practices for the insurance industry?

It would appear this author is advocating across the board testing when a claim involves target housing. Who's going to pay for it?

Live in a pre-1978 home? I'd expect an increase in your homeowners insurance in the very near future.

[Eieio]

I can't see it not raising the claim costs and also increasing your insurance premiums

[Silvertree]

Its already happening, I just received a 50% increase for my home, built in 1957.

No reasons given, never had a claim in 16 years.

[orson]

The more we wade through this issue the more logical it seems that there should be widespread lead testing.

If you can get your house certified lead free and save on insurance and remodeling costs, as well as have peace of mind that would be quite a boon.

On the other hand knowing you have lead paint and on which surfaces it resides would simply empower a homeowner to make sure issues are dealt with properly and with the proper level of response.

For example if I knew there was lead paint on my interior door frames it would make me a lot more proactive in dealing with a door rubbing.

If I knew my windows had lead paint on them I could make a more informed decision about replacing them, how extensive the replacement should be, or whether I would opt for storms and leave the old windows in, etc.

How does the RRP rule deal with lead testing, is your home no longer considered target housing if a certified tester has declared it lead free?

[SLS-Construction]

Owen - if your house has been certified lead free by a Certified Lead Inspector, anyone can work on it

[Blue]

owen - if your house has been certified lead free by a certified lead inspector, anyone can work on it

huh? ..............

[SLS-Construction]

A Certified Lead Inspector, can go into an older house & test everything - if there is no lead it no longer falls under the EPA's mandate - to cover your bases though you want a copy of that inspection

A modern practical example - Lets say you are working on a bathroom remodel & replacing everything that was done say 10 years ago. As a CLR you can't test everything due to the shenanigans pulled by the EPA. If the HO wishes to though, they can pay to have just the bathroom tested by a Certified Lead Inspector - if everything comes back clean, you can proceed without the containment, need to be a CF or CLR, etc... You still need a copy of the report

[Blue]

So what you are are saying is that someone like Bodger, who hasn't done the certification yet can instead sell the prospective client on an entire (or 1 room only) test. If the test is neg then Bodger can do the job without certification.

This is the first I'm hearing about this option. Most homes have been repainted with latex and you could swipe them all day an not get a positive. Its when you start bashing the drywall you have probs. So what does Bodger do after he introduces lead dust on top of everything and the HO decides to have another test later?

[SLS-Construction]

Cool pick on Bodger day... :grin:

But in essence - correct. It would have to be done by a Certified Lead Inspector in his state (this applies to 39 out of the 50 - the other 11 would be one certified by the EPA)

They would either take paint chips or samples from all the surfaces and send them to a lab or use some XRayFlourescence or something that sounds similar which tests for lead on the spot - it scans through all the layers & you get an answer then

Once the results are back & certified negative the house no longer falls under the RRP. Lets say it did come back positive - you would either have to pass on the job as your not certified or you take on the job and contract out to an abatement firm & then get it retested.

[Blue]

These are options anyway.

As a homeowner would you like to have an option of a $300 test pre-construction or just go ahead and pay the remodel firm the extra $1000 to bag and contain?

I think it was SLS's blog that mentioned that if the HO tests and they are positive then they have to report it in a real estate transaction.

Sounds like it a dice roll if the HO wants to save some money.

[RCP]

Cool pick on Bodger day... :grin:

But in essence - correct. It would have to be done by a Certified Lead Inspector in his state (this applies to 39 out of the 50 - the other 11 would be one certified by the EPA)

They would either take paint chips or samples from all the surfaces and send them to a lab or use some XRayFlourescence or something that sounds similar which tests for lead on the spot - it scans through all the layers & you get an answer then

Once the results are back & certified negative the house no longer falls under the RRP. Lets say it did come back positive - you would either have to pass on the job as your not certified or you take on the job and contract out to an abatement firm & then get it retested.

So if a test from an "Assessor" comes back positive a CR cannot work it?
But if a "simple" test from the CR comes back positive, they can?

[SLS-Construction]

Chris - key words in Blue's post was not certified

As a Certified Firm he could, but then the catch becomes that he is not doing abatement work which could affect the property value when they go to resell as the house is still positive for lead. Granted they could retest it but as the work was not done by an abatement company... well we will leave that to the lawyers, mortgage companies, Realtors, etc... to fight over

[orson]

What is required to be certified in abatement?

Certainly seems that if you're doing a gut job anyway and you could then certify the room, area or house as lead free that would be a boon.

[SLS-Construction]

Check with your state - most states run that part of the EPA's program (39 out of the 50)

http://www.epa.gov/lead/pubs/traincert.htm#where - click your state on the map - if white you will need to check out the EPA's requirments