Don't Delay Call the Insurance Today!

From Rachelle's Desk

Here's what just happened, and I learned something new. A house I manage flooded and neither me or the owner was thinking to call the insurance because we both thought that it wouldn't cost more than the deductible to fix.

Every policy requires you to report promptly.

Now the insurer is saying that they might not cover fully because mould may have grown before we called them and they had no chance to mitigate the damage and this may have increased the amount they would have to pay.

Do it the same day, in this order

1. Make it safe, then stop. Shut off the water, board up the opening, stop further damage. But don't throw anything away before you photograph it.

2. Mitigate Damages: If you can, try to stop further damage and dry the place up. If you can…and this depends on how severe the damage is.

3. Photograph and video everything, before cleanup. Rooms, damage, the source of the problem. More photos than you think you need.

4. Call your insurer or broker Every insurance company has a 24 hour claims report line you can call and they will send a Claims Adjuster and or a Contractor out in a day or two

5. If legal papers arrive, forward them to your insurer that day. A statement of claim, a lawyer's letter, anything with a deadline. Don't sit on it, don't try to sort it out yourself first, and don't wait to see if it goes away. Waiting makes everything worse and timelines are short, most courts give you 20 days to file a defense.

6. Write down what happened. Date, time, who was there, what you did. Keep every receipt.

7. Stick to facts. Don't admit fault and don't promise to pay anyone anything in writing. That part is for the insurer and the lawyers.

And one thing owners get wrong: For the houses and buildings I manage, the owners are the ones who know about the insurance company. Even if you think the claim is not worth it, it might turn into a bigger problem down the line, so when in doubt call.

The insurance company has specialized contractors that come and remove drywall and install fans and remove sewage water etc. until the regular contractors can come in and fix it completely. The pictures you see are standard work one of these contractors would do, remove the drywall and let the place dry out before it becomes a haven for mould.

Mould is very serious and ridiculously expensive to get rid of if you use "proper" mold remediation companies. The insurance companies are doing everything in their power to keep the mould from growing.

Opening a claim costs nothing. A late claim will cause you a lot of problems including not getting the financial coverage you paid for.

No matter how long I'm in property management, there's always more to learn.