Fire Destroys Football Stadium

Biggs High School is located in a remote rice and orchard-growing community. After a fire ripped through the school’s football bleachers and press box, morale took a major hit as students and faculty lost their focal point. The high school recovered their initial payment for the loss of the bleachers. However, as the bleachers, press box, and observation tower were built by local farmers on an un-engineered raised concrete foundation, the original construction could not be rebuilt under current code. Biggs High School engaged Adjusters International Pacific Northwest (AIPNW) to recover the funds needed to make the new stadium code compliant.

• The insurance company held a firm position that the Biggs High was only entitled to rebuild an identical building; constructing additional bathrooms and different bleachers were beyond the scope of its policy.
• Without the code upgrades, the stadium’s new construction would violate Americans with Disability Act (ADA) regulations. Biggs High would need to install new ADA-accessible bathroom facilities to be compliant, which would require adding sewer and water lines. It would also need to add lighted ADA access from the parking area and remove the existing foundation before installing ADA-accessible bleachers.

• Adjusters International Pacific Northwest responded that Biggs High was entitled to recover the funds necessary to rebuild the lost structure with the code upgrades, including an ADA-complaint access to the raised bleachers, press box, and tower, and new ADA-compliant restrooms. These costs could be applied toward the proposed bleachers and facilities. The current design resolved the ADA issues by including new ADA-accessible bleachers, restrooms, and a snack bar.
• A new sewer line would run from the street a quarter-mile away; water lines would be installed; lighted ADA access from the parking area added; and the existing foundation removed before installing ADA-accessible bleachers. The sewer line had to include a lift station to pump sewage to street level as the stadium was below the street grade. The stadium design included an increase in the size of the bleachers, and the insurance company took the position that the entire cost of rebuilding should be prorated by the size increase. Adjusters International Pacific Northwest countered that most of the project costs would have been comparable had the size of the bleachers been unchanged, and only the costs associated with the increase in the bleachers should be prorated.

The insurance company had initially reserved $300,000 for the claim and, based on the proration of the entire project, had offered $560,000. Adjusters International Pacific Northwest successfully argued its position and was able to secure a final settlement of $1.9 million, allowing the school to execute a new design of their football stadium including accessible bleachers, concession stand and a renovated restroom building.