Hurricane-damaged US firms dig in for insurance fight

A car dealership is covered by Hurricane Harvey floodwaters near Houston. (Reuters)
Updated 15 September 2017

Hurricane-damaged US firms dig in for insurance fight

NEW YORK: Business owners who are trying to get back on track after hurricanes Harvey and Irma now face a different sort of challenge: trying to recoup lost income from their insurers.
Exclusions in the fine print of policies, along with waiting periods and disagreements over how to measure a company’s lost income, make business interruption claims among the trickiest in an industry renowned for complexity.
“I think the whole thing is a rip-off,” said Thomas Arnold, an optometrist in Sugar Land, Texas. He said his business, Today’s Vision, was shuttered for almost five days after Hurricane Harvey struck because nearby flooding kept employees and patients from getting there.
Arnold says he pays $1,083 per month for coverage. But after he filed a claim, he said the US unit of Zurich Insurance Group, rejected it because his business was not physically damaged.
Zurich does not comment about specific claims, the company said in a statement. It added that business interruption coverage generally requires “direct physical damage” to a property for a payout.
It was Arnold’s second disappointing experience with business interruption coverage. He said another insurer denied his claim in 2008 after a nine-day power outage from Hurricane Ike.
Devastating storms are hitting the US with increasing frequency. Risk modeling firm AIR Worldwide predicts losses to all properties from the flooding in Texas alone will be $65 billion to $75 billion, regardless of whether they are insured.
The income lost by shuttered firms makes up a significant chunk of overall losses from a natural disaster and can hobble the pace of a community’s economic and social recovery.
Hurricane Katrina in 2005, for example, caused about $25 billion in insured commercial losses, of which $6 billion to $9 billion has been attributed to business interruption, according to information posted on AIR’s website.
The National Flood Insurance Program does not offer a business interruption component. The program is largely used by homeowners, but it also covers commercial structures for up to $500,000 in damage, with another $500,000 for the contents.
That is why companies able to afford the additional protection of business interruption insurance, usually large and medium-sized firms, often purchase it despite the potential for unsuccessful and drawn-out claims.
Big Star Honda, a car dealership in Houston, lost 600 vehicles – 95 percent of its inventory – and was shut for five days after Harvey.
Its managers are now girding themselves for a potentially long slog with the firm’s insurance company as the dealership prepares to make a claim on its business interruption policy.
“We’re collecting every single invoice that pertains to the hurricane,” said Allen Paul, Houston regional vice president of Ken Garff Automotive Group, which owns the dealership.
“I’m really curious to see how that goes,” he said.


Migrant parents separated from kids since 2018 return to US

Updated 23 January 2020

Migrant parents separated from kids since 2018 return to US

LOS ANGELES: Nine parents who were deported as the Trump administration separated thousands of migrant families landed back into the US late Wednesday to reunite with children they had not seen in a year and a half.
The group arrived at Los Angeles International Airport from Guatemala City in a trip arranged under the order of a federal judge who found the US government had unlawfully prevented them from seeking asylum. An asylum advocate confirmed the nine parents were all aboard the flight.
Some of the children were at the airport to greet them, including David Xol’s 9-year-old son Byron.
David fell to one knee and tearfully embraced Byron for about three minutes, patting the back of his son’s head.
“He was small,” David said after rising to his feet. He looked at his attorney — who accompanied him on the flight — raised his hand about chest-high and said, “He grew a lot.”
David, Byron and his attorney, Ricardo de Anda, then embraced in a three-way hug and exchanged words in their huddle. Byron was all smiles. Father, son, attorney and family sponsor eagerly left the airport for their hotel.
The reunion was a powerful reminder of the lasting effects of Trump’s separation policy, even as attention and outrage has faded amid impeachment proceedings and tensions with Iran. But it also underscored that hundreds, potentially thousands, of other parents and children are still apart nearly two years after the zero-tolerance policy on unauthorized border crossings took effect.
“They all kind of hit the lottery,” said Linda Grimm, an attorney who represents one of the parents returning to the US “There are so many people out there who have been traumatized by the family separation policy whose pain is not going to be redressed.”
More than 4,000 children are known to have been separated from their parents before and during the official start of zero tolerance in spring 2018. Under the policy, border agents charged parents en masse with illegally crossing the US-Mexico border, then placed their children in government facilities, including some “tender-age shelters” set up for infants.
The US has acknowledged that agents separated families long before they enforced zero tolerance across the entire southern border, its agencies did not properly record separations, and some detention centers were overcrowded and undersupplied, with families denied food, water or medical care.
In June 2018, US District Judge Dana Sabraw ordered the government to stop separating families and reunite parents and children.
At least 470 parents were deported without their children. Some of the kids were held in US government facilities and ultimately placed with sponsors. Others were deported to their home countries.
Accounts emerged of many parents being told to sign paperwork they couldn’t read or understand or being denied a chance to request asylum in ways that violated federal law.
The US Department of Homeland Security referred a request for comment to the Justice Department, which did not respond.
The American Civil Liberties Union, which brought the original family separation lawsuit before Sabraw, asked the judge to order the return of a small group of parents whose children remained in the US In September, Sabraw required the US to allow 11 parents to come back and denied relief to seven others.
ACLU attorney Lee Gelernt said Sabraw made clear he would only order the return of people “who were misled or coerced into giving up their asylum rights.” That will leave other parents who fled violence, poverty and persecution to decide whether to have their children return to their home countries or remain in the US without them.
“Many are going to make the decision that generations of immigrant parents have made — to leave their child in the US and endure the hardship of separation, but to do it for their child’s own safety,” Gelernt said.
Xol said that after he and his then-7-year-old son, Byron, crossed the border, they were taken to a US Border Patrol processing center in South Texas. Xol was charged with illegal entry on May 19, 2018.
Two days later, Xol said an officer told him to sign a document that would allow him and Byron to be deported together. If he didn’t sign, Byron would be given up for adoption and Xol would be detained for at least two years.
Xol signed the document, only to have Byron taken away and then get deported to Guatemala. Byron was placed in government facilities for 11 months.
The family’s attorney, Ricardo de Anda, persuaded a federal court to force the US to let a Texas family take in Byron. Since May 2019, Byron has lived with Holly and Matthew Sewell and their two children, with regular video calls to his family.
Holly Sewell brought Byron, now 9, to meet his father at the airport. They planned to go back to Texas to pack and prepare for Byron to move in with his father once Xol is settled in California. Before the reunion, Byron kept asking Sewell, his caretaker, when his father would clear immigration authorities.
“They’re almost here, you’re doing great,” she said. “Count to 1,000.”
“999,” Byron responded.
She said she was thrilled Byron could see his dad again but sharply criticized the US government’s treatment of asylum-seekers.
Esvin Fernando Arredondo was expected to be on the plane. The father from Guatemala was separated from one of his daughters, Andrea Arredondo — then 12 years old and now 13, after they turned themselves in on May 16, 2018, at a Texas crossing and sought asylum legally, according to Grimm, his lawyer. He failed an initial screening and agreed to go back to Guatemala.
According to Sabraw’s ruling, the government deported Arredondo even after the judge had ordered families reunited and subsequently prohibited US officials from removing any parent separated from their child. He’s now being given a second chance at asylum under the court order.
Andrea was separated from all family for about a month, living in a shelter as the government struggled to connect children with their parents because they lacked adequate tracking systems. She was finally reunited with her mother, who had turned herself in at the Texas crossing with the other two daughters four days earlier than her husband, on May 12, 2018.
She and her two daughters passed the initial screening interview for asylum, unlike her husband, even though they were fleeing for the same reason. Their son Marco, 17, was shot and killed by suspected gang members in Guatemala City.
Arredondo’s wife, Cleivi Jerez, 41, arrived at LAX less than an hour before the flight landed with their three daughters in tow, ages 17, 13 and 7.
“Lots of nerves, last night I couldn’t sleep,” she said in Spanish in an interview after the flight landed.
Jerez said she planned to stay up late catching up with her husband. She planned to rest at their Los Angeles home tomorrow as well, catching up on their 17 months apart before he has to report to an ICE office Friday in San Diego. Alison Arredondo, 7, said she missed going to the park with her father and she wanted to go to one with him in LA.
While the US has stopped the large-scale separations, it has implemented policies to prevent many asylum-seekers from entering the country. Under its “Remain in Mexico” policy, more than 50,000 people have been told to wait there for weeks or months for US court dates. The Trump administration also is ramping up deportations of Central Americans to other countries in the region to seek asylum there.
“People want to make this a heartwarming story, but it’s not. It’s devastating,” Sewell said. “There is just no good reason why we had to do this to this child and this family. And he symbolizes thousands of others who have been put in this exact same position.”