As a property manager, you will have many decisions to make in the first few weeks after a building loss. Public adjusters (PAs) are the sounding board for all your difficult decisions and can give you immediate guidance on most topics. PAs also expedite the process. This is critical, because if you’re managing a property with 30 units, you can expect tenants from each unit coming at you with questions and concerns. Do you know how to make a claim for tenant relocation? For a PA, this is simple – they can provide the necessary information to easily navigate this and other areas, such as personal property coverage and moving expenses.
Just as you would get expert attention for a pressing legal or tax matter you may face, you will benefit from having a public adjuster manage your claim through the entire insurance adjustment process. How does a PA work with you? Let’s look at the various phases of a property management claim to find out.
Immediately upon learning of property damage to one of your buildings, you should contact your PA before anybody else. This is absolutely the best first step you can take. This is because they have expertise in handling the preliminary steps to organize the post-incident triage. They can get the emergency cleaning and board-up companies lined up and ensure other critical details are firmly under control. Your PA will arrange for the windows to be boarded up, or have any standing water removed from the basement.
Perhaps most importantly, your PA will thoroughly read your insurance policy to determine how much coverage you have, and estimate the amount of your claim. What happens if you have $1 million in property insurance coverage, but it’s shaping up to be a $2 million claim? You’ll need to closely manage and monitor the clean-up subcontractors to ensure they are working within the proper budgetary scope. The PA will do that – and make sure you’re only spending what is necessary.
Your PA will then coordinate with the insurance company representatives. If you don’t have a PA, the insurance adjuster – who represents the insurance company – is likely to come in, look around, and reserve funds based on a quick scan of the damage. Problems can arise if the reserve funds are set inadequately for the full reconstruction. If you have a PA, they will work with the insurer from the onset of the claim to ensure adequate funds are in reserve.
The next step is meeting with the insurance company and restoration company to develop an accurate moisture map of the property. A moisture map is a document that spans a building, unit-by-unit and room-by-room, identifying the specific building materials that are wet and need to removed. This is used as a road map to help estimate the repairs to the property. Without a PA involved, the property owner is responsible for overseeing this process – where’s the potential problem there?
If not done in the proper order, the train could come off the tracks in an early phase and cause detrimental effects along the way. For example, would you as the owner start repairs to the property without having an agreement with the insurance company as to the scope and cost to repair the property to pre-loss conditions? Are you aware of the risks you’re taking if you do so? Your PA can answer all these questions and more.
Once an agreement is in place between the PA and the carrier, it will be arranged for the restoration company to begin demo. If during that demo, half the ceiling is removed from a room, for example, the carrier might not approve the need for a full replacement. Your PA’s job is to make sure the insured is fully indemnified after a loss. Your PA will also serve as the ongoing point person for all communications with your insurance company. Never talk to an insurance company by yourself. Insurance adjusters are savvy in asking you questions that optimize the carrier’s position – a PA will deftly avoid that trap.
If you’re managing a condo building, every condo owner should have their own HO6 policies. Hence you’re potentially facing a huge time suck dealing with 30 different insurance companies, investigators, and subrogation attorneys. Each of these requires specific information (condo bylaws, etc.). How is the deductible going to be applied? What does the HOA master policy cover? What is covered by unit owner insurance? Your PA can handle all that.
You will also need a PA’s help in dealing with the condominium association as a whole. The PA will attend board meetings and answer all condo owner questions as needed. Most PAs have a full team that works together to manage how the funds should be allocated. Consider all the units’ collective damage – is there one contractor, or does each unit hire their own? What do you do when condo owner estimates are WAY higher than the master policy estimate? It’s a logistical nightmare UNLESS you have a PA who regularly deals with such issues and knows how to handle them. It’s a lawsuit waiting to happen – but that’s avoidable if you hire your PA.
At SMW, you can rely on us to provide you with the same level of personalized advocacy that you get from your team of attorneys. As the premier public adjusting company in Massachusetts, we pride ourselves on premium client service and bottom-line results. SMW will go the extra mile to ensure that our property manager clients come away from this process highly satisfied. We are always available to meet with property managers under no obligation to discuss any of your possible insurance claims. We’re also happy to answer any property claims questions that your legal colleagues may have. Don’t hesitate to contact us at any time to discuss such matters.
