An Interview with Dr. Jerry Spindel After Fire Tore Through His Derry Medical Office (1/21/25)
- Dealing with a complex claim like this one required insurance experts who were well versed in that area. Hiring public adjusters with expertise in the more complicated parts of the claims process was key.
- Businesses should have a good disaster recovery plan in place – before disaster strikes. This company now has a more robust internet hub and computer backup so they can get back up and running in a few hours should they need to run the practice remotely.
- Having a public adjuster on their side helped greatly when the carrier’s adjuster’s inventory list contained only a fraction of their items. To lose $2 million of equipment would have been crippling.
- It may be worthwhile to extend your business interruption coverage to 24 months.
- Businesses should review their leases. If they can, they should insist on not continuing to pay rent if there is a fire and the building becomes unusable.
- Make sure your records (leases, bank statements, etc.) are in order and kept offsite or in the cloud so they won’t be destroyed in a fire.
A Guide to Valued Policy States (2/4/25)
- In a valued policy, the dwelling limit of liability is agreed to by both the carrier and the policyholder so that, in the event of a total loss, the policyholder need not prove the value of the property to recover. Instead, the insurer cuts a check for the amount of the limit of liability on the declarations page of the policy.
- Massachusetts is NOT a valued policy state, but many policies contain extended replacement cost (usually 25% or 50% more) or guaranteed replacement cost endorsements (this has no ceiling and will be what’s fair and reasonable to rebuild).
When The Nantucket Stroll Goes Dark – Can Businesses Get Coverage? (2/25/25)
- Most commercial policies contain “time deductible” language that limits recovery to damage that occurs after a certain period of time has lapsed – usually 72 hours.
- Because even one day of lost revenue can be crippling, we advise our business clients to get a utility endorsement.
- It can be beneficial to an insured to keep and have the option to salvage damaged equipment that might still have value in instances where there might be a shortcoming of property insurance coverage.
- Be wary of the carrier’s “equipment experts”. In the case of this claim, he never visited the loss site, and priced the equipment with refurbished items from overseas.
- Having a public adjuster complete a thorough inventory after a loss can save you a lot of money. The carrier in this claim offered payment for only one of the three pieces of equipment the insured owned. Luckily, we had pictures to back it up.
- If a property insurance claim exceeds the limit of liability, additional coverage extensions in the policy kick in – these include coverage for computers, cell phones, debris removal, fine arts, employees’ tools and personal effects.
Loss Of Use Coverage (4/15/25)
- Loss of use coverage covers living expenses above and beyond normal living expenses – but not every additional living expense is covered.
- When you go to CVS after a fire to buy a manual toothbrush, this would be considered an emergency expense if you lost a fancy, electric toothbrush in the fire.
- After the fire, you go to The Gap to get clothing. If you had those brands in your home, you’re just replacing damaged items with those of “like kind and quality”. Therefore, these would be replacements rather than emergency expenses.
- If you buy groceries while staying at a hotel after a property loss, that would be considered a replacement of the food you had at home. But eating at restaurants would be an additional living expense if you’re spending more than you normally would.
Does Your Condo Association’s Master Policy Provide Sufficient Coverage? (7/8/25)
- When a condo’s Master Policy is on an “all-in” basis, coverage extends to any upgrades or improvements made by the unit owners.
- If this loss had been catastrophic, the building would have been underinsured. Whether it was the fault of the trustees, the property manager or the agent, we wanted them to know about it.
- Increasing your ordinance or law coverage is key if you have an older building, as the cost of bringing a building up to code can be very high.
- Those buying expensive condo units are making a huge financial investment. If the entire condo association isn’t adequately insured, that investment could be totally undermined.
Why Do Insurance Carriers Issue Non-Renewals Of Existing Policies? (9/2/25)
- Residential policies may not be renewed if the policyholder submits several claims, whether they are minor or severe.
- Residential policies may not be renewed if the carrier sees high-risk issues, such as a deteriorating roof or cracks in the foundation.
- A change in how the property gets used can also prompt a non-renewal of the policy – think homeowners who decide to rent out their home, or people opening a daycare in their home.
- Making unpermitted changes to the property could prompt a policy non-renewal. This could include adding a trampoline or zipline, or failing to fence in a pool.
Does Your Business Have Enough Ordinary Payroll Coverage? (10/1/25)
- If a property loss causes your business to shut down for a period of time, your Ordinary Payroll coverage will allow you to continue paying certain employees while you make repairs.
- Even employees who aren’t highly skilled workers or managers may be key to your business operation and hard to replace. You should consider an endorsement to extend your Ordinary Payroll beyond the standard 60-day window of coverage.
The Ordinary Payroll Trap (11/4/25)
- If your ordinary payroll coverage lasts for only 60 days past the date of the loss, it could be difficult to maintain staff during a lengthy renovation or rebuild.
- Watch for rental value only traps. Policies written for rental income alone may ignore non-rent revenue streams which could total thousands per month.
- If you can’t afford to lose certain staff, list them as key employees or extend your payroll coverage.
- Consult with experts before a loss happens. Don’t rely on post-loss logic – get your policy reviewed before disaster strikes.
