Property Insurance Claims Blog

Considering an Apartment Insurance Claim Settlement Offer?

Most apartment building owners lose tens or even hundreds of thousands of dollars by accepting the insurance company’s initial damage estimate and offer.

In my previous posts, What is Business Interruption Insurance?  and 5 Business Interruption Insurance Requirements, I have covered what this type of insurance is and the requirements needed to file a claim. I would say by now we all have a clear understanding of how this insurance policy helps your business if there is damage to the property, such as fire damage or a ton of bricks falling from a roof and damaging the walkway. These examples qualify for a business interruption insurance claim.

Often, you will need to hire an adjuster or an insurance attorney to help with the claim process. While business interruption insurance covers you sometime the insurance company does not readily hand off the money.  Let's examine the actual filing process so you receive what you are due.

It’s that time of the year when the winds pick up speed, the clouds start rolling in and the water level starts to rise. It’s hurricane season. As a manager or building owner of an apartment complex, you prep for these situations. You buy the right types of property insurance, which includes fire, flood, and other damage. You think you have done everything you needed to do to be prepared for a storm.

Then you get the word from the local news station, “Category 4 Hurricane. Must Evacuate.” You pack up your things and leave before the hurricane hits the Greater Houston area. You return to the apartment complex and find mulitple trees down, no power, flood damage to every apartment on the first floor, and holes in some of the roofs. Fortunately, your insurance company takes care of all of the property damage.

But what about business operations? Bills must still be paid even though much of the apartment complex is unihabitable. Your business is temporarily shut down severally limiting incoming income. Fortunately, there’s insurance for that, it is called Business Interruption Insurance.

"Don't run before you walk."

Your apartment building is affected by a citywide flood or maybe a fire that makes the local news.  You file an insurance claim and soon realize this is a bigger job than expected and you need professional help.  You begin interviewing public adjusters and attorneys you are interested in hiring.

All of a sudden, everyone starts throwing numbers, strategies and promises at you. It becomes too much, and you just want to stick your head in the sand. This is the point when you stop talking to everyone.

Sit down and lay out everyone's offer. 

The point of hiring an experienced professional is to relieve your stress and help make better decisions.

To help make this decision less overwhelming, here are some thoughts to keep in mind when you are about to hire a public adjustor or attorney.