Commercial Property Damage: Part III

Keep a Claim Journal

Filing a commercial insurance claim takes time and attention, and there is much that can go wrong. Be sure to keep meticulous records of all your claim-related activities. Should a dispute arise, you’ll have documentation, which is far superior to memory when evidence is needed

Keep records of all:

• Phone calls. Note the date and time, details of the conversation and with whom, the results, and any promised or needed follow-up; document every call, even if you don’t speak to anyone, or if you leave a voicemail.
• Letters and emails. Most insurers save every email they receive, so always think carefully about what you are communicating. Keep a copy of all written and electronic communications regarding your claim. Make sure everything is dated
• Face to Face Conversations. Write summaries of all in-person conversations; include the date, time, location, and names/titles of everyone involved in each conversation. When possible, follow both telephone and face-to-face conversations with an email of your summary to all involved
• Estimates. Keep copies of all damage estimates and bids you’ll collect for materials and repair work. Be sure all work promised is included in the estimate.
• Expenses. Save every receipt for every expense related to your loss.

Document your damages

Before entering any property that is damaged, contact your local fire department and utility companies to make sure it is safe to enter. Fire and water damage, in particular, can make a site toxic. Know what you’ll be walking into. Wear appropriate protective clothing, and always use extreme caution when you’re on a damaged site. Do not allow anyone to move or remove anything from your site until you thoroughly document your damages.

• Take photographs. Many and from all different angles, of your damaged building(s), equipment, and other property. If you are without electricity, be sure you bring a light source, so you can see clearly what is in each picture. Good photographs of your damages can make the difference between whether or not it’s covered.
• Write detailed descriptions about how the loss occurred and the resulting damage. Be thorough and specific about everything that was damaged
• Make a video of the damage. Walkthrough and pan the camera slowly, recording all the damage. Again, use artificial lighting if necessary.
• Determine and declare whether your property is damaged or destroyed. List and describe items individually. Pair these descriptions with the appropriate photographs.

NEVER discard any of your damaged property — even if you know it is totally destroyed — until you’ve thoroughly documented the damage AND your insurance company clears you to do so. It is impossible to claim for damages to your property if you cannot prove the existence and condition of all the property in your commercial insurance claim.

Now that we've talked about how to document your loss, next week we'll tackle Verifying your coverage and limits! Stay tuned...