Before and After Claims: Best Practices for Property Managers

This article was co-authored by Lauren Penn and Crishana Loritsch, CMCA, AMS, PCAM of Paul Davis and Sahouri Insurance, respectively.

Nobody ever wants to deal with a property damage claim. But if you manage properties long enough, one is bound to come your way. Whether it is a fire, flood, storm, or something as simple as a broken pipe that turns into a full-blown headache, preparation for this eventuality is critical to your success.

Over the years, we have observed first-hand, the peace of mind managers enjoy when they are prepared, and the consequences when they are not. The following best practices offer guidance on what property owners, managers, or operators should, and should not do before and during a loss.

What you will learn:

• Understanding your coverage
• Strong ties with a restoration team
• Staying ready before claims happen
• Staying ready during a claim
• What NOT to do

Before a Claim Happens – Have a Plan

If your building floods at 2:00 am, who do you call first? Who has access? How fast can you get help? An Emergency Response Plan (ERP) answers all these questions.

An ERP does not have to be complicated, but you do need one. Paul Davis Restoration of the National Capital Region and Sahouri will assist with your plan – at no cost to clients.

Know What Your Policy Actually Covers

We cannot tell you how many times someone’s caught off guard because they “thought” something was covered. Take 30 minutes and review your policy with your Sahouri account manager. You will thank me later.

When reviewing your policy with your Sahouri account manager, we will help you familiarize yourself with your policy's coverages and your deductible amount to manage your expectations. Additionally, should we identify areas of your policy requiring adjustment, we can help you make those changes prior to a loss.

Remember, our goal is to help minimize your costs at the time of loss, not just with your premiums paid. After all, no one ever asks, “how much did I pay in premium?” at time of loss. Rather, you want to be assured that you are properly covered at the time of loss.

Get to Know Your Restoration Team Before You Need Them

If you already have a trusted vendor in place, you can skip the scramble when something goes wrong. We respond faster when we already know your building, your team, and how you operate. Take 30 minutes to walk your property with Paul Davis to introduce the team and identify building access points.

Before a Claim – Take Photos and Keep Records

Walk the property and take photos of key areas. Pay special attention to mechanical rooms, basements, and rooflines. These areas get documented in the Emergency Response Plan (ERP). Keep a log of maintenance and inspections. Insurance adjusters love documentation, and it helps them to properly determine coverage and scope.

Before a Claim – What Not to Do

Do not assume “It won’t happen here.”

It. Happens. To. Everyone.

Do not leave emergency contacts outdated. That one wrong phone number can delay your entire response. Do not wing it. A little preparation goes a long way.

When a Claim Happens – Do This Right Away

Safety First: Make sure everyone is safe and out of harm’s way. Always make this the top priority.

Call Your Restoration Partner Immediately: The sooner we are on-site, the more we can mitigate damage. Water especially moves fast. Waiting just a few hours can double the cost of cleanup.

Notify Your Insurance Carrier:  Get the claim started. Most carriers want documentation right away, so do not delay.

Work with the Claims Adjuster:

• Be accessible: Provide your contact information and be available when the adjuster needs more information or wants to schedule a visit. Be sure to make arrangements with any affected unit owners to allow access to their units if necessary. Solicit cooperation in gaining access so that the claims process is smooth for all affected parties.
  
  
• Be present for inspections:When the adjuster visits to assess damage, be there to answer questions and ensure all damage is properly documented.
  
  
• Ask questions:Do not hesitate to ask about the claims process, what to expect, and how long it might take.
  
  
• Provide all relevant information:Be careful to only provide details directly related to the incident. Do not offer any conjecture about the incident nor assign blame for its occurrence. Rather, allow the adjuster to inspect and make the determination.

Document the Damage: Photos, videos, timestamped notes and capture it all before cleanup begins. We will do this too, but it helps to have both.

Keep Everyone in the Loop: Property owners, tenants, building staff will need updated. It helps manage expectations and reduces panic. Clarity and communication can make or break an emergency.

What Not to Do During a Claim

Do not wait around for insurance to “approve” cleanup before acting. Mitigation can (and should) start immediately. Secondary damage that occurs from waiting might cause coverage issues and increase the severity of the loss. Do not toss damaged materials before they are documented. That is evidence. Do not go silent. Communication is key with your residents and your vendors. Do not try to manage a large loss by yourself. That is what we are here for.

Filing the claim late: Delaying your claim can negatively impact it. It is best to file as soon as possible to avoid questions about the source or severity of the problem. 

If you have questions as to when it would be appropriate to file a claim (or not to file a claim), give your Sahouri account executive a call. We can help you assess the situation quickly and help you make a determination that is appropriate and timely.

Final Thoughts

The goal is not just to recover; it is to recover faster and with less stress. And that is possible when with preparation and established contacts on who to call when things go sideways.

If your business needs help designing a basic Emergency Response Plan for your properties or just want to know what to expect when a claim happens, click here to contact us. We do this every day, and we are happy to be a resource (even if you do not need us right now).

Remember, proper planning creates peace of mind when we need it most.