In an ideal world, an investor will never have to file an insurance claim on any of their investment properties. Unfortunately, if you have multiple properties within your real estate portfolio, filing a claim is inevitable. The larger your portfolio is, the likelihood of a claim only increases. Thankfully, you can take some simple steps before and during a claims process to make sure it is processed as quickly as possible.

Not Being Familiar with your Policy Coverage and Limits before its Inception

Review of your policy, review of coverages afforded under the policy, and review of the policy limits are crucial steps in being prepared for possible claims. Although you may not be an insurance expert, having a general knowledge and understanding can help determine if you wish to claim a loss. Although coverage cannot be accepted or denied without a full investigation of your insurance carrier’s claim, you are encouraged to make an informed decision when considering filing a claim.

Not Reporting a Crime

If you suffer a loss because of a crime, filing a police report should be done as soon as you are made aware of the loss. Delay of filing could slow the claim process or even result in a denial of the claim. Review and become familiar with your “Duties After a Loss” under the applicable policy terms and conditions and ensure the duties are performed accordingly.

Not Reasonably Protecting any Undamaged Property from an Incident

Additionally, if there is an increase in additional loss exposure because of a loss, reasonably protecting any undamaged property from potential damage is a standard condition in most insurance policies. For example, if a water pipe bursts in one unit, making sure the water supply is shut off immediately to prevent damage in neighboring units is a step that should be taken.

You may be interested in our article: Protecting Homes Under Renovation and Vacant Dwellings

Not Filing the Claim Quickly

Quickly filing a claim is an essential and straightforward practice to ensure a smooth claims process. Most policies have a specific time frame in which a loss must be reported within. The sooner you file a claim, the better. The reasoning behind this is because an insurance adjuster will have a much easier time determining the details of a loss if the damage is fresh. As weeks or months pass by, the details of the loss can be distorted with time. Again, understanding your “Duties After a Loss” under the applicable policy terms and conditions will assist with the overall claims process and, in some cases, help to reduce your loss exposure.

Check out our article: Protecting Your Real Estate Assets

Not Fulfilling Requests for Additional Information or Documentation Right Away

After the claims process begins, your insurance company may request additional documentation to clarify the details of the loss. Quickly providing those documents and information will help avoid delays. You and your staff can be better prepared before a loss occurs by developing an organization system that is regularly updated will help assist when documentation is needed quickly.

Maintain a Relationship with your Insurance Provider

The most crucial factor that can help to have a smooth claims process is a partnership with an insurance company with your long-term real estate investment interests in mind. When you have an insurance partner whose goal is maintaining a relationship with you for years to come, you can have confidence that any claims made will be handled in a professional, fair, and timely manner. Finding an insurance partner specializing in insuring real estate investment properties and understands the importance of a quick claims process is key to ensuring your business runs smoothly.