Property Insurance and Disaster Recovery - Part 3

The vast majority of businesses purchase commercial property insurance. Depending upon the type of coverage bought, this insurance can cover loss or damage to insured property, time element losses, research and development, public relations costs, loss adjustment expenses, loss mitigation and many other items.

To both preserve and maximiz e this coverage, develop a checklist of certain action items to address with your property insurance companies (including your excess insurance companies) that includes the following:

 

Time requirements to rebuild or replace: Similar to the point above, see if there is a deadline by which policy seeks to have the rebuilding or replacement of the affected property completed.

 

Preservation of evidence: Sort out in writing how evidence is to be preserved if destructive testing or immediate remedial work needs to be undertaken.

 

Loss mitigation: Address in writing the loss mitigation steps you intend to take. If there is no time to do this in advance, then address it in writing soon thereafter, memorializ ing the urgent conditions that required you to act immediately.

 

Demands for partial payments: Some policies have express provisions requiring the insurance company to make partial payments or claim advances. Invoke these clauses so that cash flow issues are ameliorated.

Property Insurance and Disaster Recovery - Part 2

The vast majority of businesses purchase commercial property insurance. Depending upon the type of coverage bought, this insurance can cover loss or damage to insured property, time element losses, research and development, public relations costs, loss adjustment expenses, loss mitigation and many other items.

To both preserve and maximiz e this coverage, develop a checklist of certain action items to address with your property insurance companies (including your excess insurance companies) that includes the following:

 

Notice: Provide timely notices of claim to all insurance companies.

 

Proofs of Loss: Schedule and meet deadlines to file proofs or statements of loss. If the proof of loss deadline appears unrealistic, be proactive and get extensions (in writing). If there is not enough time to do so, file a partial proof of loss reserving the right to amend/supplement the proof.

 

Suit Limitation: If your policy contains a suit limitation clause (and almost all do), this date must be conservatively calendared, no matter how friendly your local underwriter seems to be while handling your claim.

 

Election of valuation method: Check your insurance policy to see if there is any deadline on the date by which the insurance policy seeks to have you elect the valuation method for the loss claimed.

Property Insurance and Disaster Recovery - Series Part 1

Whether man- made or naturally occurring, a disaster can imperil even the most rock- solid business. Not shockingly, the very survival of a business often hinges on how quickly and how completely it is able to recover from the catastrophe.

In today’s competitive environment, it is easy to get wrapped up in the daily details of running a business. While this mind- set helps get the job done, it can be overdone, particularly when it leads to tunnel vision. As recent disasters have vividly demonstrated, the choice between focusing on daily operations and planning for future disasters is no choice at all — planning is essential to the survival of the enterprise.

As such, developing a disaster recovery plan and assembling a team to implement that plan, before the loss occurs, is invaluable. While generally no single disaster recovery plan will be right for every business, this week we bring you some insurance and property considerations that require prompt action when a disaster occurs.

 

Damaged Home? How To Get An Insurer To Pay Up - Part 3

Tornadoes. Hurricanes. Wildfires. Over the past decade, insurance companies have paid more than $450 billion in property damages to policyholders. But now, some insurers are looking for ways to limit their losses by denying claims and sticking homeowners with the bill.

Today's tips conclude simple and valuable steps you can take to help make sure you get paid when filing a property claim.

Consider hiring a public adjuster: If the claim is large, you might want to hire a public adjuster.

Public adjusters work for policyholders, not the insurance company. Typically, they are veterans of the insurance industry or they worked as contractors or engineers. In most cases, they are paid with a percentage of the claim, usually 5% to 15%. They can prepare objective estimates, describe the extent of the losses to the insurance adjuster and help you withstand pressure from insurers to settle.  Often, policyholders accept low-ball offers from insurers because they don't know what they're entitled to, don't realize how much repairs cost or they're just worn down.

 

If all else fails, get help.  If your claim is turned down, you can lodge a complaint with your state regulator. Or hire an attorney to take a look at the denial letter. And if you succeed in proving your claim, it doesn't have to cost you too much money.