Insurance Claim

Insurance Claim

The investment of a commercial property can be a significant one, and property values can range from several hundred thousand dollars to millions of dollars or more. You may use your commercial building to run your own business out of, or you may use it as an income-producing investment. Regardless of how you use this property, the fact is that you want to keep it in great shape to preserve and even improve your equity and to maintain its functionality for income-producing activities. However, all types of properties may be at risk for becoming damaged, and property insurance can minimize your financial risk associated with property damage.

Natural Causation for Property Damage
Property damage can occur due to everything from a vehicular accident impacting your building to a plumbing or electrical mishap, but mother nature may be a significant causation that results in many insurance claims. During a major storm, severe wind, heavy rains with hail and even flooding can result in a partial or even a complete loss for a commercial building. In fact, the cost of damage due to some of the most severe storms may equate to millions of dollars in some cases.

How Property Insurance Can Help
As a commercial building owner, you may be required to maintain a real estate insurance policy on the property. Most commercial lenders require that a property owner maintains at least a minimal level of coverage. This may be used to pay for most of the repair work or replacement construction work on a property after a major storm or other natural weather event strikes. In most cases, a commercial building owner will need to pay a deductible, but the proceeds from the insurance claim may pay for most or all of the remaining costs associated with repairs or replacement. A deductible, however, may be rather high on a commercial property, so it is important that property owners keep the amount of the deductible on hand to deal with a worst-case scenario.

When You File a Claima
A commercial building owner generally should file an insurance claim as soon as possible after the property has been damaged. The fact is that the use of the building may be partially or completely impaired until the repair work has been completed, and it can take time for a claim to be fully processed and approved. You can file a claim by contacting the insurance company's claims department. The agent will obtain general information about the claim and your insurance policy, and the damage assessment will be scheduled.

The Completion of a Damage Assessment
Before a claim on a commercial insurance policy can be processed and approved, an agent from the insurance company will need to visit the property and assess the damage. During a damage assessment, a trained professional will inspect the damaged areas with a detailed eye. This may require the professional to inspect the roofing, basement or other areas of the property that have been affected. Through the assessment, an estimate for the cost to repair or replace the property will be determined. In addition, the actual cause of the damage will be assessed. For example, the assessor may be able to determine if the storm caused the visible damage or if the area was already damaged before the storm struck. Keep in mind that the assessment will ultimately be used to determine if the damage is covered by your insurance policy and the amount of the benefits that may be provided to you for the repair or replacement work.

Repairing the Damage to Your Property
In the best case scenario, your claim will be approved, and the benefits check will be processed and sent to you. In most cases, the insurance company will send you a lump sum amount for the total amount of the estimated repairs less the amount of your deductible. You will then be able to control who you select to complete the work and making payments to those professionals or contractors. In most cases, the amount of your claims check will be sufficient to pay for the repairs that are required. However, some contractors and service professionals have higher rates, and you may need to shop around to find contractors who have a reasonable price. If you have obtained several quotes for the repair work and none are priced within the same level that the assessor has estimated, you may contact the insurance company to appeal the amount of the claim. In some cases, the insurance company will work with you to account for market costs for labor and materials for your repair or replacement work.

If a Claim is Denied
While many claims will be processed speedily and approved without drama or concern, some property owners will learn that their insurance claim denied. It can be stressful and even devastating to learn that your insurance company is not willing to pay out on your claim, but you do have some recourse if your insurance claim denied. For example, you may file an insurance claim dispute with your insurance company. First, you should learn what the reason for the denial is. Remember that the causation for the damage must be a covered event by your policy. For example, the damage may have been caused by flooding, but your policy may not cover flood damage. If you believe that the damage should be covered by your insurance policy, you may need to obtain documentation to support your claim. Because the amount of claims benefits may total hundreds of thousands or even millions of dollars in some cases, it may be beneficial to seek professional legal assistance when you are dealing with an insurance claim dispute.

Property damage can be detrimental to the use of the property as well as its value, but your insurance policy may provide you with benefits that can remedy the situation. By filing a claim, you may be able to collect proceeds that can be used to repair damage to your building with minimal cost to you.

Please contact flobopro.com for more information.