NUTS & BOLTS
PROPERTY INSURANCE
claim, additional investigation, and claim denials. Have no fear, though: Following this list is very easy. 1. Notify the police if a law may have been broken. Your insurer will want a copy of the police report when you have a break-in or fire. You must report them and allow officials proper access before you attempt a walk-through on your own. Never enter a damaged building until they tell you it is safe to do so. 2. Take all reasonable steps to protect the property from further damage, keeping a record of any expenses. This is called “mitigating the loss” and involves protect- ing the property from further damage. Re-secure doors and windows, tarp the roof, and board up the property to keep trespassers, animals, and weather out. Fail in this and the resulting excess damage will complicate the investigation pro- cess and may diminish your settlement or void your claim. 3. Cooperate with the insurer in the investigation or settle- ment of the claim. It is always in your best interest to cooperate with your insurance company, but handling disagreements professional- ly expedites the process. Keeping everything above board will protect you if they require your testimony under oath. 4. Give prompt notice of the loss or damage, including a description of the property involved. “Prompt notice” means as soon as you are able. Most insurers allow ample time, usually 60 days, to report your loss after dam- age discovery. Wait too long and your claim may be denied. 5. As soon as possible, give the insurer a description of how, when, and where the loss or damage occurred. Most insurers have a designated form to report an incident and initiate the claims process. (This is different than the Sworn Proof of Loss discussed later). Be as thorough as pos- sible when describing damage on this form. Small details that may not seem significant to you may be important to your insurer and will help them adjust the loss fairly. 6. If requested, give a complete inventory of the damaged and undamaged property, including quantities, costs, val- ues, and amount of loss claimed. Satisfy this requirement by getting a bid from a contractor or several contractors for any repair work needing to be done. Ideally, the adjuster’s assessment will line up with your bids.
damaged property for inspection, testing, and analysis. Allow your insurer access to any items needing physical ex- amination to appropriately settle the loss. If you must remove damaged materials during mitigation, they must remain on site so the adjuster can view them. 8. Permit the insurer to inspect the property as often as may be reasonably required. They have the right to inspect your property more than once to perform a complete investigation and settle the loss accurately. 9. Allow access to and copies of books and records. If you are already monitoring the progress of a renovation
How to MaximizeYour Insurance Benefits DON'T LET A MINOR OVERSIGHT VOID YOUR DISASTER CLAIM.
> Continued on :: PG 97
BreAnn Stephenson is assistant vice president of Affinity Loss Prevention Services (ALPS). Contact her at breann@affinityLPS.com and sign up for the ALPS monthly newsletter at www.affinitylps.com.
by BreAnn Stephenson
I
nsurance shouldn’t be your only strategy for managing risk, but it can be a lifesaver if you experience cata- strophic property damage. To take full advantage of this risk management tool, it’s crucial to know what your insurance policy holds you accountable for. Fail to follow the provisions of the policy and you could end up having an otherwise-cov- ered claim denied. Fulfilling certain key responsibilities will help ensure your valuable coverage remains fully available when you need it most! FOUNDATIONS: THE INSURANCE CONTRACT & THE PURPOSE OF INSURANCE Before we investigate your responsibilities, it is important to understand the fundamental nature of the insurance con- tract. The insurance policy is a contract between the insured (you) and the insurer (insurance company). It basically works like this: You pay them a premium, and they promise to pay you when your property is damaged under the circumstances defined in the contract, with a few caveats that we’ll deal with in a minute. You must grasp the foundational purpose of insurance. In- surance is not intended to profit you, but rather make you whole. The rates you pay are based on the cost to restore your property to the condition it was in just prior to your loss.
Some investors mistake their insurance premium as payment for a maintenance contract, which helps with expenses associ- ated with “wear-and-tear” on a property over time. Insurance is for sudden, unforeseen, unintended, and unplanned events. Now, let’s talk about a few responsibilities typically found in your property policy. It is important to know them and abide by them if you want to maximize your insurance benefits. GET FAMILIARWITH PROTECTIVE SAFEGUARDS “Protective Safeguards” are conditions at your property that must be met for coverage to be available in the event of a loss. Without them in place, you may not be covered for any dam- age associated with their absence. Two common examples of protective safeguards are:
A single burglary on a vacant or renovation property can cost over $8,000. That’s over 4 times the national average per break-in! Real estate investors can experience higher losses due to stolen appliances, HVAC Equipment, wiring, plumbing and more. 56% OF THIEVES BREAK-IN THROUGH A DOOR. WE'RE IN YOUR CORNER.
Prevent costly break-ins. Reinforce your doors. Layer your Security with products from:
WORKING SMOKE DETECTORS IN EACH UNIT VACANT PROPERTIES BOARDED AND SECURED
NO. 1
NO. 2
Visit AffinityLPS.com for more tips and discounts on products to help you protect your assets.
KNOWAND PERFORMYOUR DUTIES INTHE EVENT OFALOSS
AffinityLPS.com | 816.398.4114 Learn more at:
If you have a loss, the insurance company is counting on you to comply with certain duties itemized in your policy. Failing to do so can result in delays while processing your
7. Permit the insurer to take samples of damaged and un-
90 | think realty magazine :: august 2018
thinkrealty . com | 91
Made with FlippingBook flipbook maker