Catastrophe strikes at the most inopportune times. Dealing with insurance for repairs as a property owner of a multifamily property or HOA building can become tricky and confusing, making repairs after a storm a daunting task.
Interacting with insurance companies is inevitable and will be necessary to get the repairs started. To help aid through this journey, we have detailed a few things that you will need to know.
The owners will need to notify the insurance company
The first step is to notify the insurance company that there’s been some damage to the property. Most policies will state a specific time frame for reporting damages and if your people fail to report them within this time frame, it might result in the denial of the claim.
Even if your residents have to leave the property for safety reasons, the owner or HOA Board president will still need to reach out to the insurance company within the specified amount of time.
Make sure your owner or Board member has many photos that clearly detail the damage, as well as comprehensive notes and remarks that they can provide the insurance company with. The insurance world is all about the little details so be very thorough.
The insurance company will likely want to send an adjuster from their own firm to handle that portion of the process, know that this person doesn’t always have the best interests of the owner or Board in mind.
In case you are unaware, your people have the right to hire a public insurance adjuster. In the case that you decide to hire a public adjuster, make sure they are trustworthy and can help get the most from the insurance company.
Find out what your budget is going to be
The insurance adjuster will let your insurance agent know what needs to be repaired or replaced and how much it will cost. This is why it’s so important to look for an adjuster that has your property owner’s best interests at heart.
When you get this report, know that the adjuster is only going to repair or replace what was already on the property with comparable materials. If the owner or the homeowners of a HOA want any upgrades to the property, these will likely be coming out of their own pockets.
It will be your job to find a contractor
Not all contractors are equal. You might be tempted to go straight to your preferred vendor list when looking for someone to help you fix up the property, but that might be a mistake.
When it comes to insurance claims, you’ll need to look for a contractor company that is used to working with people in the insurance industry. Typically, these contractors are known as restoration contractors.
Restoration contractors have years of experience and the knowledge necessary to repair homes that have been damaged by fire, water, smoke or wind. In these situations, it is essential to keep in mind that there is a distinct difference between restoring a damaged home as opposed to remodeling or renovating an existing home. General contractors are not nearly as familiar with the insurance claim procedure.
Classic Construction & Restoration Inc. is one of North Texas’ most well-known restoration contractors. If you’d like more information on navigating an insurance claim or on restoration project, please give us a call today.
Sources:
https://www.insurance.wa.gov/hiring-general-contractor-homeowner-insurance-claims
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