Are you prepared for your first (or next) claim in your rental community? It’s helpful to know that you’re not alone in the claims process. ePremium® Insurance Agency is here to help you navigate through the journey.
The Insurance Information Institute reports that the most frequent and costly losses for homeowners (and rental properties) are fire, lightning, freezing and water damage. While we know you cannot control the weather, this info gives us a good starting point for an example:
Erica in apartment 4c comes home from vacation to find water-soaked carpet on the first floor of her living space. Understanding how a claims process works may help you speed up the process of restoring your residents back to pre-loss condition, gaining Erica and others peace of mind.
A Claim’s First Steps
The claim process involves multiple steps and, while the steps aren’t one-size-fits-all, there are 2 key parts to look out for:
- Date of Loss vs Date of Coverage: Most denials on claims are because coverage did not exist on the date that the damage occurred. This often happens when a resident such as Erica has their own renters insurance policy which lapses, but you, the property manager, didn’t know about it. Coverage is assumed to be in force; however, the policy cancelled before the loss date.
- Cause of Loss: This is arguably the second-most reason claims are denied. It’s important to know what happened to cause the water damage and if insurance will apply. The cause of loss is clearly defined in the policy and can tell you under what circumstances a claim may be paid. Just because water has soaked the floor doesn’t mean that it’s a covered cause of loss. Knowing the following regarding the water damage is key:
- Was the damage caused by a resident?
- Did the damage occur due to a sudden event or was it accidental?
- Was the damage a result of illegal activity?
Note that all claims are subject to the terms, conditions and exclusions of the coverage applicable to the loss. Each resident should carefully review the terms and conditions of the policy.
A Precious Process
The other steps are process driven:
Filing a claim against a third party may be different than filing with your own insurance company. That said, the steps are still similar:
- A licensed claims professional will review what has been submitted and provide an initial assessment, which may include date of the loss, statements, photos, documents, etc.
- Additional information could be required.
- The claims team will then compare the circumstances of the loss against the policy language, coverages, and limits on the policy.
- The final step of the process is a payment and, sometimes, a release form. In this last stage, the claims professional provides an assessment and instructs a payment. Once the payment is accepted, the claim is considered settled.
The claims experience can range from simple and easy to complex and frustrating. Understanding the process steps of a claim may help you navigate your next claim.
Raising our PMC Partners Up Right
Our team at ePremium® Insurance Agency has nearly two decades of working with property management companies (PMCs) and residents alike in helping to provide guidance, education, and customizable policies to help ensure that you and your rental community have coverage if a loss occurs. Request a call to learn more!
ePremium Insurance Agency, LLC, a limited liability company organized under the laws of Ohio, is a licensed insurance producer in all states, except Alaska with its principal place of operation at 4770 Duke Drive, Suite 200, Mason, OH 45040 (NPN 9925625, California License No.: 0G66570, Texas License No.: 1549460). ePremium Insurance Agency, LLC does business under the following names: in NY dba – ePremium Insurance Agency LLC; in FL dba – ePremium Insurance Agency, LLC; in CA dba – ePremium IRIS Insurance Solutions, LLC.