tree valuation?

[boreality]

We just had a large wind storm resulting in many trees being damaged. I took tree valuation in school but have never used it, I prefer the chainsaw to the pen. Anyway, I've kind of forgotten what I learned. The insurance adjusters are telling clients the trees had no monetary value and only building damage was covered.

Do homeowners need to have their trees insured following valuation or is it part of a standard homeowner policy? Some pretty nice trees went down and if I remember right some would of been valued in the thousands. At least would not a replacement of a smaller caliper trree of the same species be covered? And what about removal/cleanup costs?

 

[boreality]

Maybe I should ask the question another way. Forget the value issue.

What have you experienced following a large wind storm regarding trees and insurance also the press?

The press has had stories of tree services gouging and no positive reports of the local pros who worked into the night and kept their rates as fair as usual. I'd also love to call the emergency room and see how many related injuries to homeowners there were. For five days every truck and trailer in town was hauling branches, my first storm this big. Lots to learn.

Basically what I'm trying to do is get some free advertising and consumer education by taking advantage of the storm and giving an informative press release.

 

[cerviarborist]

Probably a good chance for you to contact the local press and let them know that they have the opportunity to relay good information to the community from a certified arborist. It's a good chance for you to be cited as an expert, and for people in your area to know that they have access to a regional expert on trees.

As to valuation guymayor is experienced in that aspect of arboriculture. Perhaps he could chime in with some information for you.

 

[farmergardiner]

We have had a lot of experience with this issue, ICE Storm of 98 and lots of storm issues over the years. Generally insurance companies will only cover the damage the trees have done to property. They only will pay to have the tree removed from that property, generally won't even pay to have the trees cleaned up. Very Frustrating for both homeowner and tree person.

I have only had 1 customer in almost 20 years of selling work that had her trees insured. She had a separate clause on her policy to insure her trees. The insurance covered a percentage of the home value to give a value to the trees. If I remember correctly she ended up with about $3 or 4k and most of that went to the cleaning up the 20 or so trees she lost.

The other issue with being a pro when the gougers are coming out of the woodwork (pun intended) is to get as much information going as you can. With every customer let them know you are charging your regular rates, word will get around. The others will eventually get caught. We had one case where an older lady was actually taken to the bank by the gouger to get his $7k. He was named in the national newspaper and outed because the work hadn't been completed and a reputalble guy was able to finish it pro bono and said it was probalbly worth less than $2000.

 

[Sylvia]

The standard for tree appraisal here in the U.S. is the Guide to Appraisal, 9th Edition.

But for insurance losses, you generally have to have the trees or landscape insured separately and specifically for them to be covered. It all depends on how the policy is written. Some standard policies will cover a certain amount for damage caused by trees, some will cover a certain amount to clean up the trees after the storm, it all depends.

Definitely become informed in your regional norms as to what is available to your clients. Perhaps talk with some insurance carriers to find out what products they offer. Then pick out some properties that might illustrate what would be worthwhile in insuring. Do an appraisal on those properties to show how the money would be well spent.

This might give your targeted clientele a visual for what is worth insuring and what is not. And remember to include the entire landscape...not just the trees.

Sylvia

 

[guymayor]

Document that the storm was "sudden and unusual" and tree value may be deductible as a casualty loss.

Many insurance companies pay costs to replace or repair trees.

More good press comes from repairing trees than removing them--the pen is mightier than the chainsaw.

 

[Sylvia]

[ QUOTE ]
Document that the storm was "sudden and unusual" and tree value may be deductible as a casualty loss.

[/ QUOTE ]

A good reminder, Guy. We often think of the immediate reimbursement via insurance, but taxable deductions due to casualty loss is important to remember as well.

Sylvia

 

[treemann]

Why would you charge your normal rates for storm work. You have to prioritize storm work ahead of your normal customers who may look elsewhere. You are working more hours in more dangerous situations and you have additional expenses.

We recently had two storms go through our work area in less than a week. All of our employees worked 90 hours a week for three weeks just to get the trees removed from houses. Between out 2 crews we were able to help 8 to 12 customers per day. Also during those three weeks we accumulated over $40,000 in crane bills.

In my opinion charging above normal rates is necessary to stay in business.

 

[tomthetreeman]

Maybe he meant regular storm rates?

 

[treedimensional]

I am in the same Province as Bevin, and most of the insurance companies here only cover the removal of the trees from on/in the houses and buildings. They do NOT (for the most part) pay for clean-up!

I did a appraisal for fire damaged trees this spring. This guys insurance company had a cap on what they would pay for the trees.

I have to agree with treeman, why wouldn't you expect to be paid more for storm work? He cited some valuable points, but missed some too. These homeowners see their trees with little-to-no value UNTIL they are going to be getting some money from an insurance claim. Then (all the sudden) they are worth a King's ransom!

To be realistic, these old trees owe their owners nothing. Especially IF you calculate in the benefits they have given to the people who have lived close to them (sometimes even a couple generations of people). Now, if you have a valuable asset, wouldn't you make sure it stayed VALUABLE??? IF you made your living driving, wouldn't you change your oil at intervals like the book in the glove box suggests? It is one of the cheapest things you can do to get the long life out of your investment!!!!

Most of these tree owners won't pay to have someone (hopefully experienced and qualified) come in and work on their trees. A little crown thinning here and there, coupled with a little end reduction, goes a long way to keep the damn things vertical!!! These people are exhibiting the "re-active" rather than the "pro-active" approach to their trees! I don't have a lot of compassion for people that are ONLY reactionary!!! God forbid that they would consult a professional prior to planting.....final removal of a tree. like, its JUST a tree mentality! (place satirical smiley here)

Bevin, go ahead and work for peanuts, try and not get killed! A lot of arborists fail miserably when it comes to business, they don't see the forest (livelihood) for the trees (compassion for the art of keeping trees healthy). I am more of a risk and reward kind of guy who IF they risk their life, they should be rewarded. I will stop short of saying, "you can pay me now, or ya can pay me later: but your going to pay me"!!!

 

[guymayor]

another call from an insurance co yesterday to look at a tree. they have a limit of $1000/damaged tree. When I go there tomorrow I will look verrrrry closely for damage to to other trees.

1.5x or even 2x for storm work seems reasonable. 3x and higher does not; one opinion.

 

[treedimensional]

Our storm rate is ~1.75X our regular rate. One thing I didn't mention, referring to the "risk and reward" thing is, a lot of trees that fail here kind of barber chair. The only thing that stops them from completeing their mission is the HOUSE got in the way!!!!

It kind of leaves some pent up tension (or compresion) in the tree. That usually makes a transition to the poor bugger who has to figure out where that compression/tension IS!!!!

Nope, no way I do THAT any more for the regular rate!!!

 

[boreality]

The clients that got these regular rates have been mutiple times repeat customers and responsible for many referals. They got prompt service, that's how I operate. Most of my work has been repeat or referal. The phone book hosed me two years in a row and didn't list me. So all I've had is referal work.