A Case Study: What to do when Disaster Strikes! Disaster Recovery A Case Study: What to do when Disaster Strikes! Presented by: Mark Lewis and Billy Short II FirstOnSite

Topics Brief Introductions – What is our expertise? Introduction of Case Study What Do You Do When Disaster Strikes: Pre – Planning Moment of Truth i.e. How to React TOP 10 Recovery Musts! Questions

CASE STUDY: Hurricane Harvey Stats: Category 4 Major Hurricane 130 MPH winds Devastating impact at coastal landfall 10+ TRILLION gallons of rain water Devastating flooding in Houston and surrounding areas Thousands of people displaced Costliest natural disaster in US history - $175B+  Who All Was Impacted By This Major Storm?

 PRE-PLANNING The best plan for disasters is to pre-plan while there is time to organize thoughts and plan without hysteria. A few check points to be done during blue skies: Do you have the proper insurance coverage? Check with your broker to ensure you have wind coverage, flood coverage, mold coverage, business interruption, etc. Know your policy limits. What is the max coverage you have? What is the deductible? Is there a higher deductible for a named storm? Have your insurance contact info stored. Your broker’s contact info. Your named adjuster contact info. Time is of the essence during a disaster. It’s best to be at the front of the line when filing a claim.

PRE-PLANNING (Cont’d.) Know all your key people and vendor’s contact info. Manager, assistant manager, the property telephone number, the exact physical address, utilities (gas, electric, water), municipality contact info (city/county) and your restoration contractor. Do you have site plans? Mechanical plans? Electrical plans? Know where these are. Know your building. Roofing material, exterior material, flooring, etc. Pick a qualified restoration contractor. This isn’t something the insurance company should do for you. Keys: availability, experience, size, pricing, contract, location, insured, licensed, etc. Do you have an O&M plan? Is inventory salvaging a concern? If so, pick a salvage contractor. Plan a meeting with ownership, insurance, restoration contractor and salvage contractor.

All Your Pre-Planning is Done. Ok, What’s Next? Uh Oh, Hurricane Harvey Makes Historic Landfall! Time to visit your store and survey damage. Fingers crossed!

Well….That’s Not Good. What Do You Do

THE MOMENT OF TRUTH: 1. Contact 911 if needed to ensure all personnel are safe at the building. 2. Is emergency response needed by fire department, gas department, electrical department? 3. Contact your restoration contractor and start the recovery process immediately. 4. Contact your insurance broker and possibly the insurance adjuster to start the claim. 5. Is the building safe to occupy? Is a structural engineer required? Contact your salvage company to start that process. It can be a long process from start to finish.

THE MOMENT OF TRUTH: (Cont’d.) 7. What do you do with your staff at location now the building is out of service? 8. Are there product deliveries to be rescheduled? 9. Do you require staff to be present while building is being repaired? 10. Can I use my employees for restoration?

Where to start and how to finish strong! Top 10 recovery musts: Where to start and how to finish strong! Stabilize the building. Are there holes in roof? Is the exterior compromised? Does a wall need to be shored? Correct these first. Get the water out! Water is almost always involved in every disaster. Water in your building left for more than 72 hours will be considered Category 3 water and will become more difficult and more expensive to handle. Start the drying process as soon as possible. The drying process depends on the saturation levels, current weather conditions, water contamination levels and building status. It can be as simple as opening the doors under the right conditions because of outside humidity levels or as complex and creating a drying plan based on the IICRC’s recommendations.

Top 10 recovery musts: (Cont’d.) Is selective demolition of interior building materials required? Hardwood floors, drywall, ceiling tile, etc. Know the role of the insurance adjuster. They aren’t the enemy…they are there to enforce the policy. Can I use my normal trade vendors during a property loss? Who has my best interest at heart during the insurance loss? When do I start rebuilding? Do I need 3 estimates? Planning for reopening. Key communication with restoration contractor so you can plan accordingly for inventory management, employee placement and sales/marketing. When do I pay? Negotiations between adjuster and restoration contractor.

QUESTIONS?

Contact Information Contact Information: Mark Lewis, FirstOnSite mlewis@firstonsiterestoration.com Billy Short, II, FirstOnSite bshort@firstonsiteusa.com