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CRE Insights Blog
5 min read
by Jeff Hamann

The Commercial Property Insurance Claims Process

My hope is that you don't need to file a claim. But if you do, here's what you need to know to get your claim handled as quickly and smoothly as possible.

In this article:
  1. Immediate Actions After Property Damage
  2. The Role of the Claims Adjuster
  3. Documentation: The Key to a Smooth Claims Process
  4. Negotiating Your Claim
  5. Claim Resolution and Payment
  6. After the Claim: Reviewing Your Coverage
  7. Final Thoughts
  8. Get Financing

Obviously, you hope never to experience a situation that requires filing an insurance claim. Still, when the unexpected occurs, it's important to understand the claims process — this can make a significant difference in how quickly and effectively you recover from a loss.

In this guide, I'll take you through the essential steps of filing a commercial property insurance claim and how to streamline the process.

Immediate Actions After Property Damage

The moments following property damage can be chaotic and stressful. However, your actions during this time can significantly impact the success of your insurance claim. Your first priority should always be safety. Ensure that all occupants are safe and that the property is secure from further damage.

Once safety is assured, your next step is to notify your insurance company as soon as possible. Many insurance policies have specific time requirements for reporting a loss, and prompt notification can help avoid potential issues with your claim. When you contact your insurer, they'll guide you through the initial steps and likely ask for basic information about the incident.

During this initial contact, ask your insurer about other immediate steps you should take. They may provide guidance on securing the property against further damage or recommend emergency services. Keep in mind that your policy likely requires you to take reasonable steps to protect your property from additional damage. However: Don't start any major repairs until the insurance company has had a chance to assess the damage.

The Role of the Claims Adjuster

After you've reported the loss, your insurance company will assign a claims adjuster to your case. This professional plays an important role in the claims process. They're responsible for investigating the claim, assessing the damage, and determining the amount of your payout based on your policy coverage.

The adjuster will typically schedule a visit to your property to inspect the damage firsthand. During this visit, they'll document the damage through notes, photographs, and possibly videos. They may also interview you and any witnesses about the events leading to the damage.

It's important to cooperate fully with the adjuster but also to remember that you can and should be an active participant in this process. Don't hesitate to point out all areas of damage and provide any documentation that supports your claim.

Documentation: The Key to a Smooth Claims Process

One of the most critical factors in expediting your claim and ensuring a fair payout is thorough documentation. The more evidence you can provide to support your claim, the smoother the process is likely to be.

Essential documentation includes property deeds and titles, which establish your ownership and the specifics of the property. Recent appraisals and valuations can help determine the property's worth before the damage occurred. If you've made any major purchases or improvements, having receipts on hand can ensure these are factored into your claim. It's really important to have an up-to-date inventory of everything you own in the property.

For commercial properties with tenants, lease agreements and tenant information are also crucial. These documents can help establish the property's occupancy and rental income, which may be relevant if you're claiming loss of income due to the damage.

Perhaps most importantly, visual evidence can be incredibly powerful in supporting your claim. If you have "before" photos or videos of your property, these can be compared with the post-damage state to clearly illustrate the extent of the loss. It's a good practice to regularly photograph or video your property and its contents as part of your ongoing risk management strategy.

Negotiating Your Claim

Once the adjuster has completed their assessment, they'll provide a report to the insurance company, who will then make an offer to settle your claim. It's important to remember that this initial offer is often negotiable.

Review the offer carefully, comparing it with your own documentation and assessment of the damages. If you disagree with the offer, don't be afraid to challenge it. Provide additional documentation or evidence to support your position. In some cases, it may be helpful to hire your own appraiser or public adjuster to provide an independent assessment.

Claim Resolution and Payment

Once you and the insurance company agree on the settlement amount, the claim moves to resolution. The time it takes to receive payment can vary depending on the complexity of the claim and your insurance company's processes. Some insurers may issue multiple payments, especially for large claims or if repairs are ongoing.

Be sure you understand the terms of the settlement before accepting it. Some settlements may have conditions, such as a timeline for completing repairs or requirements for how the funds are used.

After the Claim: Reviewing Your Coverage

After you've gone through the claims process, it's a good idea to review your insurance coverage. The experience may have highlighted areas where you were underinsured or revealed risks you hadn't previously considered. Use this knowledge to adjust your coverage as needed to better protect your property in the future.

Final Thoughts

Navigating an insurance claim for your commercial property can be complex, but understanding the process can help you achieve a faster and more satisfactory resolution. Remember, documentation is key, and being proactive in maintaining records and inventories can pay off significantly if you ever need to file a claim.

At Janover Insurance Group, we're committed to supporting our clients through every stage of property ownership — including the claims process. If you have questions about your coverage or need guidance on preparing for potential claims, don't hesitate to reach out. We're here to help ensure your commercial property investments are protected, come what may.

In this article:
  1. Immediate Actions After Property Damage
  2. The Role of the Claims Adjuster
  3. Documentation: The Key to a Smooth Claims Process
  4. Negotiating Your Claim
  5. Claim Resolution and Payment
  6. After the Claim: Reviewing Your Coverage
  7. Final Thoughts
  8. Get Financing
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  • insurance

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