Commercial property is at risk of many of the same losses as any other type of property, including theft, vandalism, or natural disasters. Prompt repairs and cleanup are necessary following commercial damage, but not before you properly document the damage for the insurance company. Even the smallest mistakes during the claims process can lead to unnecessary delays and more financial losses.
Mistakes During and Immediately After Commercial Property Damage
Experiencing a commercial loss is stressful, but your steps immediately following damage can significantly affect your outcome. Failing to quickly review the damage and notify the insurance company about the loss can be expensive. Here are a few potential pitfalls to avoid during and immediately after experiencing commercial property damage.
Not Ensuring the Safety of Employees and Tenants
Safety should be a priority. Before doing anything else, ensure your employees and tenants are safe. This may include checking for gas leaks, water damage, or potential mold growth. Some commercial property losses may also result in structural damage, which makes the building uninhabitable. Avoid allowing your employees or tenants into the building until it is deemed safe to do so.
Not Protecting Property From Further Damage
Another reason to take immediate action after property damage is to avoid further damage. Left untreated, water damage can turn into mold. Insecure structural components can weaken and lead to a property becoming condemned. Ensuring your roof is tarped or windows are taped up can help avoid additional damage and costs to your property.
Some properties may require emergency repairs to keep everyone safe. If this is the case, it’s crucial that you work with an experienced property restoration company so you can begin the repairs as quickly as possible without affecting your insurance claim.
It’s important to note that some insurance policies may even require property owners to complete any reasonable temporary repairs to prevent further damage.
Mistakes During Insurance Claims Process
Most business owners will file a property damage claim following a commercial loss. It’s crucial to pay attention and carefully monitor your claim to ensure it accurately describes your losses and that the insurance company is upholding its part of the contract. Avoiding the following mistakes can help you protect yourself during the claims process.
Missing Property Inventory
Commercial property loss claims require an inventory of damaged items. Following extensive damage, it can be difficult, if not impossible, to recall all the items in your commercial building. For this reason, we always recommend keeping a full inventory of items and the replacement cost of each.
Missing property inventory is one of the most common causes of underestimated property claim payouts. When filing a commercial claim, it’s crucial to include all property. This includes smaller business items like desks, computers, or electronics, as well as larger equipment like work trucks or tools.
Many insurance companies also pay out things like business interruption during the claim process. Make a thorough list of losses incurred before submitting your commercial claim, even if you’re unsure whether or not it’s in your coverage. Knowing the ins and outs of your insurance policy can also help you navigate it easier.
Not Documenting Damages Appropriately
The commercial property damage claims process requires careful, detailed documentation. All damages should be reported, regardless of what you believe to be their value. Smaller valued damages can quickly add up, and some damages may be even larger than they initially appear. A commercial property owner should also account for business interruption, depreciation, and total replacement costs.
You can document damage by taking a photograph of each item or loss. Video evidence can provide even more support for your claim.
Failing to document your business damages appropriately can lead to lower commercial property damage claims. Make sure you fully investigate the damages before settling with the insurance company. Too many businesses make the mistake of closing their claim prematurely before fully understanding the extent of the damages.
Throwing Away Damaged Materials
Many property owners understandably want to begin the cleanup process as quickly as possible after damage. However, it’s crucial that you carefully document the damage before throwing anything away. Commercial insurance claims require photographs and sometimes video evidence of damaged property, and cleaning up too much can make this impossible.
Instead of throwing away damaged items, consider separating the damaged from undamaged items. This allows you to protect property that hasn’t been exposed to damage without ruining your claim.
Not Establishing a Police Report
If your commercial building experiences losses due to theft or vandalism, your insurance company may require you to file a police report. A police report may be required during your claims process, so contact the local police as quickly as possible. Keep a copy of the police report for your claims records.
Mistakes During the Commercial Property Repair Process
After documenting the damage and filing an insurance claim, it’s time for the cleanup and repairs to begin. Avoiding mistakes during the repair process is just as important as it is throughout the rest of the claim process.
Your insurance company may choose a property restoration company on your behalf, but you have the right to choose your own. It’s often better to veto an insurer-provided company because you need a company willing to represent you and your interests — not the insurer’s.
Going for the Cheapest Restoration Company
Some business owners may be tempted to choose the cheapest restoration company, but this is usually not the best idea. Choosing a company that’s too cheap may mean they don’t have the best equipment or experience you need to restore your property fully.
Cutting corners or insufficient repairs can put your property at risk of further damage. More qualified property restoration companies also have better connections with contractors, which can help you secure better-priced repair estimates.
Not Following Regulations
Whatever restoration company you choose must follow all legal and regulatory requirements for repairs. Otherwise, the insurance company may not cover its costs. This is another reason to choose a professional restoration company.
Not Performing an Inspection of Repairs
A post-repair inspection ensures your property is in good working condition and safe for your employees or tenants to reenter. By inspecting the repairs, you can protect your business from future damage or expensive lawsuits.
Need Commercial Property Damage Restoration?
PacWest Restoration has the expertise you need to navigate a commercial claim and avoid many of these common mistakes. Contact us today at 503-746-6546 to maximize your claim payments and protect your property from additional damage. Don’t wait because cleanup, repairs, and notifying the insurance company are all tasks that require you to act quickly.
