Hotel/Motel & Apartment Complex Claims
Understanding Hotel/Motel Insurance Claims
Losses to resort properties can often be enormous in terms of monetary damages as they are often built in areas that may have high risk factors such as flooding, windstorm damage, hurricanes and exposure from earthquakes. Given the complex and often expensive construction and finishing in high end hotels, it is important that a thorough risk analysis be completed on a regular basis with an update on coverage limits for contents as well as building limits.
One of the challenges in this class of property is when a loss occurs, the complete property may have to be shut down even if some areas are still operational. One factor that may come into play are building officials, who in the interest of public life, health and safety issues, may require the property to be completely closed until all repairs are completed to building and health code requirements currently in place. This is especially true for older properties who lose their grandfather status regarding building codes. If this happens, the hotel may have to be brought up to the new code which can be very expensive. Things like fire systems, sprinklers, and many others may have to be completed before the building can be reopened. Property owners need to discuss the insurance issues that will be involved in a post-loss environment such as actual cash value, law and ordinance issues, as well as large hurricane deductibles.
Our experience indicates that special care should be taken when undertaking emergency repairs. Hastily attempted permeated repairs done incorrectly may result in more damage later and at greater repair cost. Special consideration needs to be given to emergency service contracts as it is not uncommon for unlicensed or unethical contractors to overcharge or do a poor job in order to make a quick buck in an emergency situation. Make sure you do it right the first time.
Understanding Apartment Complex Claims
Apartment complexes by their very nature require unique adjusting experience and consideration. When an apartment complex is damaged there is a high likelihood more than one unit will be involved. A good example is a fire loss where we have found that while the fire loss may be contained to the unit involved, chances are the complete building will be impacted by a combination of water and smoke. Another example is the impact of a wind event when roofs are damaged and the inside of the units are soaked from water entering from above.
Renters in these complexes must be moved and their personal property has to be removed in order to make the necessary repairs.
Owners turn to us due to our experience and understanding of the issues involved in these types of property losses which can be complex. While on-site property managers can be a good source of information when a loss occurs, we have found their priorities center on dealing with operations and tenant issues following a loss. Adjusting a claim is best left to Corbitt Public Adjusting, LLC who is retained by the owners or property manager who is typically seen as a beneficial addition to the team handling the loss in an expedient manner.
In addition to the physical damages documentation and negotiations, we also have experience in the “loss of rents” claims calculations that recur when the property is not rentable.