Multi-Family Claims

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The goal of any multi-unit investment property should be twofold…

1. In the short term, maximize income while the property is restored
2. Restore the property in a way that increases monthly cash flow and property equity.

Your Property Management Companies Wants To Be Involved

Although they have a little experience and are not licensed to do so

There are unique challenges to multi-family housing as many property owners/condo associations don’t realize that a property management company could be working against them when dealing with an insurance claim. When the property owner is receiving rental reimbursement from insurance, the property manager who is normally collecting a commission on rent paid, is no longer making money. If they are trusted in the negotiation process, they are far more motivated for a quick settlement and quick construction process. Insurance company adjusters know this and use it to their advantage if the property management company is involved.

A simple question we often ask multi-family property owners, “If your property management company is so great at getting good settlements, why is the insurance company so happy to work with them?” By law, the insurance company is required to work with an attorney or Public Adjuster retained by the property owner. They become the legal representative with regards to the insurance claim. This requirement does not apply to property management companies, as they are completely unlicensed and unregulated in representing property owners. The answer to the earlier question is that insurance is more than happy to work with property managers because it’s in their better financial interests to do so.

Other challenges

Other challenges in multi-family housing include personal property releases for multiple tenants, shared amenities, neighboring tenants to affected properties, stacking insurance policies, coinsurance, and how tenants throughout a complex are affected when only part of the property is affected by fire or flood. Some of these issues can become very complex and are great examples as to why hiring a quality public insurance adjuster such as Reliance Property Damage Consultants can be both very effective in increasing your settlement while also decreasing your headaches.

The steps to a favorable claim outcome

A quality Public Adjuster takes many steps in making the two goals at the top of the page a reality. What a property owner is looking for is someone who can handle the major steps in getting the claim to a favorable outcome. 

These major steps include:

●  Damage assessment: Determining the structural damage. This includes damage to HVAC and unit appliances and assessing tenant property damage and removal.

●  Policy interpretation: Analyzing and interpreting insurance policies to uncover all coverage options.

●  Claim documentation: Tracking verbal and written correspondence and compiling a detailed list of evidence, 3-D imaging, photos, repair estimate, subcontractor estimate and inventory of damages. This often includes independent third-party evaluations and estimates.

●  Negotiation: Working with the insurer to develop a fair, complete and comprehensive settlement that meets the needs of our client.

Tips for maximizing your multi-family property/apartment unit insurance claim:

●  Document all damages: There is no such thing as too many pictures. High resolution photos and videos as soon as possible after a fire or flood are essential. There should be emphasis on all affected areas to include all affected units and neighboring units that could be impacted by vacancies and repairs.

●  Keep detailed records: Texts and emails are easy to track, but notes from phone conversations are critical. Any conversations over the phone should have a follow up email summarizing the conversation. Additionally, any letters, estimates, and phone conversations with people/subcontractors that help determine the value should also be documented. This includes plumbers, HVAC technicians, landscape professionals and contractors.

●  Understand your rights/understand the policy: Take the time to carefully review your policy focusing on coverage limits and exclusions in the terms of the policy. For example, some policies exclude certain types of water damage or require specific documentation.

●  Hire professionals: If your property is being audited by the IRS, make sure your CPA is involved. If someone was injured on the property, you should probably consult an attorney. A large-scale insurance claim is no different. We recommend at least an initial consultation, which is free and without obligation with Reliance Property Damage Consultants, to better understand your policy, your rights in the insurance claim process and the true obligations of the insurance company.