The Texas Lawbook
5 . Document and Mitigate Losses
Carefully documenting losses , especially before you undertake major restoration efforts , is important . Take notes . And pictures . If you are using a phone , transfer the pictures to a more secure device . Document actions taken and why . Track expenses for professional fees , mitigation and clean-up costs , using separate accounts . Save invoices and receipts .
You must make reasonable efforts to protect property from further losses , including mitigating additional damage . Because this is required , mitigation expenses are usually covered , and as long as your efforts are reasonable carriers are usually reluctant to second-guess an insured .
6 . Consider Financial Impacts Did revenues drop ? Did expenses go up ? Were sales lost ? Business interruption and related coverages reimburse insureds for financial impacts like these .
7 . Engage Experts
Insurance carriers use teams to deal with claims , usually a mix of adjusters , coverage lawyers , accountants and engineers . Insureds should have that same team , so they match up with the carrier , especially when at least some of these fees , such as those of accountants , are typically covered .
Having experienced coverage counsel that represents policyholders rather than carriers can guide you through the process , and also help protect communications as privileged . Counsel may work in the background or take a front-facing role as needed . Insurers typically do the same thing . Cooperate with the insurance company ’ s team , but do not forget that they work for the insurer , not you . If you need experts , do not borrow the carriers ’. Hire your own .
8 . Follow the Policy to Preserve the Claim
Policies sometimes require the insured to submit a proof of loss or take other actions within a set period of time . Insurers are usually amenable to modifying these if requested , but make sure that any agreements are properly memorialized in writing .
9 . Control Your Claim
It is your claim . Try to avoid having the insurance company categorize or characterize it before you have had an opportunity to do that yourself . If that happens anyway , then remember that insurance claims are an iterative process , and you can make any necessary corrections .
10 . Communicate Keep an open dialogue with your team and the carrier ’ s representatives . Stay professional and civil . Ask for and provide clarifications when needed .
11 . Property Has Value When it comes to older equipment , or equipment in poor condition , carriers sometimes try to claim scrap value is all they owe . But check your policy — some policies provide replacement cost coverage , and that is a valuable right even if it results in betterment . Speaking of upgrades , look for code upgrade coverage , which often applies as building standards are held to higher scrutiny following hurricane activity .
12 . Relationships Have Value , Too Your relationships matter . Your broker ’ s team can also help . Even the relationships between coverage counsel or the accounting specialists and their counterparts on the insurer ’ s side can make a difference . These are important and should be drawn upon as needed .
13 . Government Funds Might Be Available for Nonprofits Providing Essential Services
FEMA and other government-based programs are potentially available for nonprofit organizations that provide essential services , such as healthcare providers , educational institutions , emergency services , utilities , libraries , museums , zoos , community centers , airports and other services that , in their
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