During a natural disaster, one could lose their home or business in a matter of seconds, be it a complete destruction of property or property that’s severely damaged. Either way, they will need help. Four of the major classifications for property damage to file a claim are:
- Residential property damage
- Commercial property damage
- Motor vehicle damage
- Personal property damage
For example, when a friend of mine was a property manager of a large outfit, during a significant snow and hailstorm, the plow crews tore up the grass at the main entrance area. They denied any wrongdoing, but the surveillance cameras said otherwise. The property manager had a private adjuster manage the insurance for the commercial claim and the lawsuit that had to be filed. In the end, the snow removal company had to pay to repair the damaged commercial property, plus their legal fees.
Adjusters helped them during all disasters, whether they were due to hurricanes, fires, hailstorms, building collapses, tornadoes, or a reckless snow removal company; they had a team that thoroughly reviewed their policies and evaluated any and all damages. It is highly suggested to find one that works with your carrier and secures the best settlement possible to repair or rebuild.
Another example I knew of was when my mother’s construction company was in the middle of a new construction project, and in the process, a tornado ripped through the customers’ property. We did not know who was liable: our insurance or theirs?
A fellow contractor had this advice to offer, “A competent attorney should be able to research this for you. If this were totally new construction, normally contract clause 52.236-7, Permits and Responsibilities, places the cost risk on the Contractor for such damage to the work while in the Contractor’s possession. I don’t know for sure about damage to existing buildings in possession of the Contractor,”.
He went on to add, “Here is the Permits and Responsibilities Clause: The Contractor shall, without additional expense to the Government, be responsible for obtaining any necessary licenses and permits, and for complying with any Federal, State, and municipal laws, codes, and regulations applicable to the performance of the work. The Contractor shall also be responsible for all damages to persons or property that occur as a result of the Contractor’s fault or negligence. The Contractor shall also be responsible for all materials delivered and work performed until completion and acceptance of the entire work, except for any completed unit of work which may have been accepted under the contract. (End of clause),”. *Per Acquisition.gov
Thankfully, my mother’s company had a team that worked with her insurance company on her behalf. They understood that the property damage affected us (her family), her employees and their families, her business, and her customers. A lot of people depended on her, so timeliness was of extreme importance.
When it comes to property damage, the impact can be far-reaching and complex, affecting not just the physical structures but also the individuals and businesses associated with them. Residential property damage can disrupt the sense of security and comfort that one’s home provides. In contrast, commercial property damage can lead to financial losses, business interruption, and strain on relationships with clients and partners.
What is classified as property damage?
Property damage is an injury to real or personal property. An example could be a chemical leak on a piece of real estate or damage to a car from an accident. Property owners can obtain property insurance to protect against the risk of property damage.
We talked about commercial property damage; let’s go a little deeper into the others.
Motor vehicle damage is another common form of property damage that individuals may face, whether it be due to accidents, vandalism, or natural disasters. In such instances, having comprehensive insurance coverage and a reliable adjuster can make a significant difference in navigating the claims process and getting the necessary repairs or compensation promptly.
Personal property damage, such as theft or damage to belongings, can also be emotionally and financially distressing. In these situations, having a detailed inventory of possessions, along with the right insurance coverage, can help in documenting losses and expediting the claims process.
In the event of a natural disaster like a tornado, hurricane, or wildfire, the extent of property damage can be catastrophic, impacting entire communities and necessitating immediate assistance and resources. In such cases, having a proactive approach to insurance, including understanding policy coverage and having a clear plan of action in place, can be crucial in the recovery process.
Property damage claims can sometimes lead to disputes over liability and coverage, especially in cases involving multiple parties or complex contractual agreements. Seeking legal advice and representation can be essential in resolving such disputes and ensuring that all parties fulfill their obligations and responsibilities.
What is the most common type of property damage?
From an analysis of Travelers Insurance policyholders, the most common causes of home insurance claims are wind, nonweather water damage, hail, weather-related water damage, and theft. Altogether, these five causes make up 77% of all homeowners insurance claims.
Wind and hail are some of the most common types of property damage claims, where around one in thirty-five homes will make a wind or hail property damage claim this year. The causes for these claims include fallen trees, broken windows, damaged siding, and other damages to homes as a result of high winds and hailstorms.
Other common causes of property damage not mentioned in the initial analysis include fire, earthquakes, and vandalism. Fire can be devastating, causing extensive damage to homes and belongings. Earthquakes, although less common in certain areas, can lead to structural damage and costly repairs. Vandalism, such as graffiti or intentional property destruction, can also result in insurance claims for homeowners.
Homeowners need to be aware of the potential risks that can lead to property damage and take preventive measures to minimize these risks. This can include proper maintenance of the home, such as trimming trees and securing loose objects that could be potentially hazardous during high winds. Installing security systems and cameras can also help deter vandalism and theft.
4 major classification of property damage
In conclusion, property damage can occur in various forms and contexts, each presenting unique challenges and considerations. Having a proactive and informed approach to insurance, claims management and legal recourse can help individuals and businesses navigate the complexities of property damage effectively and recover their losses in a timely manner.