My Business Just HAD Pipes Burst Where Do I Begin?
1. Mitigate the Damage: Hire a water mitigation company to remove the water. If you sign a contract, they will be paid directly by the insurance company. If you don’t you will be able to hold them more accountable. Do not hire out of towners, only local companies.
2. Business Interruption: Most businesses will have BI coverage. Engage your accountant now to start averaging the last 3 years of revenue to provide an average of future revenue for the next 12 months. This includes outflows as well, such as payroll. This takes time, start the process now.
3. Blueprints: If you have blueprints of the property this will be an amazing time saver in reconstructing the property on paper. Your GC needs to provide an estimate based on what the structure’s current state is. The carrier will not pay for upgrades you may plan to do.
4. Code Compliant: If you have non-code compliant items on your property that now need to be upgraded due to new city ordinances, you should have coverages for this in your policy. Request the policy and review this section to see how much coverage you have.
5. Prepare as Though You Are Going to Trial: Keep meticulous notes concerning every interaction, receipt, estimate, time frames, mitigation, accountant fees, attorneys fees, public adjuster fees, GC fees, and permits. Be organized and realize this claim is now your new job for the next few weeks/months unless you hire someone to manage it.
