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The Costly Mistakes You Can Make While Managing Your Own Commercial Property Insurance Claim

The Costly Mistakes You Can Make While Managing Your Own Commercial Property Insurance Claim

Commercial property insurance can come into play if your business premises are damaged by an insured cause of loss. Majority of people decide to let the professionals handle their insurance claims in such cases. However, not everyone agrees on this strategy. They mistakenly believe they can et a larger share of the claims if they handle it on their own. This way, they will not have to pay the middle man.

There are several other reasons you might wish to claim the commercial property insurance on your own, such as;

  • You are familiar with day-to-day operations of your business; therefore, you think you might have a better understanding.
  • You have a detailed knowledge of your business and property.
  • You have a significant financial stake in the claim outcome and you cannot afford to trust the middle man.

As a business owner, it is commendable if you are so intimately familiar with the details of your business and property. But that expertise does not extend to the inner workings of insurance industry. Therefore, it will be easy for you to make avoidable mistakes and lose any chance of receiving a significant paycheck. You might be prone to overlooking issues that might have been obvious to a professional insurance adjuster. Your financial interest in the situation might also cause you to lose focus and become prone to making poor negotiations. Therefore, you should hire professional insurance adjuster to handle your claim of commercial property insurance. Following are additional reasons for your to not handle a property insurance claim on your own;

Lack of Understanding in Policy

Only an experienced insurance professional can claim proper understanding of policy provisions and exclusions. You lack the insight that comes with being in the professional field. Therefore, you might miss a few things. You might miss deadlines or certain obligations. You won’t know your own rights, responsibilities and duties to complete extent. This might prove detrimental to your cause in handling the commercial property insurance claim.

Failure to Protect Your Property

When you sign up for a policy, there are several requirements that you are expected to follow. You must take all reasonable steps to protect the covered property from damage. If you fail to follow these requirements then your claim for commercial property insurance will come under “Neglect” exclusion. You will not be receiving any payment for the damages.

Poor Negotiations

You might be a good businessman or businesswoman, but that does not mean you know how to negotiate insurance claims. The commercial property insurance adjusters calculate actual cash value

using a special formula. There is a depreciation factor based on property age and several other factors. Then there is a coinsurance penalty. You might face if you fail to insurance property for less than 80% of its market value. You might inadvertently perform poorly in negotiations due to lack of knowledge in such factors.

Failure to Aggressively Pursue Your Claim

A professional property insurance adjuster will not back down from aggressive negotiations. You might become frustrated with their stubbornness and refusal over certain claim elements. You might need to pursue those commercial property insurance claims with equal fervor.

Read more Articles About Property Insurance:

1) Best Commercial Property Insurance Company in Dallas, Texas
2) Will Your Property Insurance Policy Cover COVID-19 Losses?
3) 6 Important Reasons Why You Should Get Homeowners Insurance
Make Better Commercial Property Insurance Claims with a Professional’s Help

You can make costly mistakes if you decide to manage your own commercial property insurance claims. you must realize that you have a choice. You can hire the excellent professional and cheap services of SG Financial Inc. We can handle important claim tasks. We can also negotiate an extremely fair settlement on your behalf for meagre fees.

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