If you want your business to stay afloat after a natural disaster or significant property damage, you’ll want to invest in commercial property insurance. However, many business owners will tell you that simply carrying this insurance may not be enough. You must also ensure you navigate the claims process correctly.
A commercial property claims lawyer can help you avoid these common mistakes regarding the claims process.
Misunderstanding Commercial Property Coverage
Before filing property loss claims, understand your coverage and whether it applies to the incident in question. Every commercial property policy is different. Request a copy of the policy from your insurer and review it closely with a commercial property claims lawyer to understand whether you have a covered event.
Commercial property insurance often includes the following coverage:
- Damage to the commercial building
- Damage to the personal property within the commercial building
- The costs incurred from business interruption due to the covered event
- Certain extra expenses from the covered event, such as the need to pay employees overtime or hire temporary workers
A thorough understanding of your policy helps determine whether the insurer offered you adequate compensation for all covered losses.
Underestimating the Value of Damage
When you submit an insurance claim, the adjuster will conduct a property damage evaluation to determine how much money to pay out. Conducting your own assessment of the damage can help you verify the adjuster’s valuation and avoid losing out on necessary compensation.
After combing through everything with your attorney, carefully evaluate all the losses you incurred from the incident. Avoid underestimating the value of the damage. Doing so could convince the insurer that the incident was not severe, leading them to lower your payout.
Neglecting To Document Damage Promptly and Comprehensively
Property damage documentation is key in any business property claim. You need clear evidence showing the extent of the damage to convince the insurer to provide an adequate payout.
Immediately after the incident, record yourself walking through the business property, assuming it is safe to do so. Show all of the damage on video, making sure to take close-up and panoramic footage. Then, take photos of all damaged areas as well. You can never have too much documentation.
Waiting too long to document the damage could lead to inaccurate depictions of it. You may have already mitigated the damage with tarps or temporary solutions, so taking photos at this point would not accurately represent your losses.
Instead, take footage as early as possible. If the insurance adjuster tries to deny any of the damage, you will have clear evidence showing its severity.
Failing To Challenge an Insurer’s Unfair Decision
Insurance companies seek to maximize profits and minimize expenses. This often means an insurer will fail to provide an adequate payout for your business claim.
You’re under no obligation to accept an insurance adjuster’s first offer for compensation. A commercial property claims lawyer can help you negotiate a higher offer that better reflects your damages. They can collect additional evidence to support your claim and communicate with the insurer on your behalf.
Neglecting To Hire a Commercial Property Claims Lawyer for Complicated Claims
While some commercial property claims are straightforward, many are complicated, involving a lot of back and forth with the insurance adjuster and unfair claim denials. If you’re navigating a complex claim, you need an experienced commercial property claims lawyer on your side.
At McLaurin Law PLLC, we know Texas insurance law inside and out. We’d be happy to help you handle a commercial property claim and maximize your payout.
Contact us today at 713-804-7598 to schedule a consultation with our insurance attorneys.
