Tips for Commercial Property Owners to Maximize Insurance Recovery

Before You Have a Loss

Select a competent insurance broker. Look for someone specializing in commercial insurance, not an agent selling homeowners or automobile insurance. Look

for the Certified Insurance Counselor or Certified Property Casualty Underwriter

designation as these are stamps of quality and training.

Make sure that all buildings are insured for full replacement value, not actual cash

value (unless you are willing to self-insure for the difference). Select the broadest code and ordinance endorsement that you can get. Make sure that you have business interruption and extended business interruption coverages.

Consider having your replacement cost calculated by a commercial builder.

Take pictures and document the conditions of all properties including the condition

of the roof. This can be captured by drone relatively inexpensively.

After the Loss

File a claim promptly. Often your broker will handle this for you but you should also

look at the page of your policy that discusses claims reporting. It likely will provide a

phone number, fax number or e-mail address. Ensure your claim is reported as

soon as it can be reported. If it is not, the insurer may attempt to assert a late notice

defense which may negatively impact your claim.

If your claim is large, consider hiring a public adjuster (in states in which

they are allowed) or a policyholder’s insurance recovery attorney, like Johnstone

Trial Law, to supervise your claim and avoid pitfalls. Ask a competent licensed and bonded commercial contractor with experience working with insurance companies to prepare an extensive estimate to repair or replace the property to its pre-loss condition.

This estimate should include all damage and applicable mitigation standards.

Often, insurance companies will try to limit damage payments to damage that can be

seen by a cursory visible inspection, large losses contain less obvious damage

that could endanger building inhabitants if not addressed early. For instance, a fire loss

can cause the release and spread of carcinogens throughout a structure as smoke and

soot travel throughout a building. In addition, water losses and water used to extinguish

a fire must be mitigated thoroughly to prevent rot and mold. This moisture can permeate

the underlayment of the floors, sheetrock, framing and other hidden areas. If not dealt

with it can cause major structural or health problems later. There also are extensive safety standards that contractors must follow to ensure that a building is restored or rebuilt properly to protect life and safety. These included OSHA, ANSI, IICRC, ASTM, and NEMA.

Review the estimate from the insurer with your contractor and have them answer

any questions that the insurer has. If you have an attorney or public adjuster, you will

want to have them conduct communications for you.

If, after comparing estimates and answering any questions from the insurer, you

still disagree with the insurer on the amount of payment, contact an attorney, if

you don’t already have one, to assist you with resolving the dispute. Your policy and the

law contain time limits and it is important not to let them pass. There are ways short of litigation to resolve your dispute, including negotiation and appraisal. We can help you with these approaches. However, litigation may be necessary to obtain full and fair compensation. We will go the distance to obtain complete compensation for our policyholders.

As always, contact us with any questions.