When and why to call a restoration company?
Generally, when damage occurs, the sooner mitigation and stabilization begin, the less severe that damage may become. Restoration firms typically specialize in restoring damaged property to a “pre-loss” condition and should be familiar with navigating challenges like hazardous materials. Most qualified restoration firms are familiar with the insurance claim process.
If we file a claim, won’t our insurance company assign a restoration firm?
The strata corporation has the choice of working with whomever they like to mitigate, stabilize and restore damage to your property, as repairs to the property are the strata’s responsibility. If you are unsure who to call, HUB or your insurance company can offer recommendations. Note that the insurance company may require a review from one of its partner restoration firms as part of its claim assessment process.
Are all restoration firms the same?
No. Some restoration firms are well-equipped to handle small, simple losses and do so at a more attractive cost. Those same firms may not be equipped to handle large and complex losses with multiple interested parties. Some firms are capable of handling both ends of the spectrum by leveraging their size and range of specialties across different divisions. It is important to match the loss to the right restoration firm.
What are some potential consequences of choosing a firm not equipped to handle the loss?
We have seen many challenges develop in cases where either a firm was ill-equipped to handle the loss or could not sufficiently navigate the claims process. Some examples include:
- Insufficient mitigation or control of the loss/site that may result in:
- Aggravated damage, such as mold issues, increased demolition and loss of salvageable materials.
- Work inefficiencies and missed opportunities, security concerns and loss of evidence
- Overly aggressive demolition, such as:
- Missing permit requirements for fire safety and structural matters.
- Creating a larger job than was necessary.
- Documentation practices that do not meet insurers’ expectations, such as
- Extended claim timelines
- Insurers’ inability to validate and/or pay costs
In addition to stoppages, delays and longer timelines, we have seen these situations devolve further. Where unnecessary or insufficiently substantiated costs may not be covered by the insurers, we have observed legal action develop between the strata corporation, property management firms and contractors, including lawsuits and liens. The insurance company’s ability to assist in these situations is limited.
Is there a benefit to working with a restoration company in which my insurance company partners?
There certainly can be. By working with a company already aligned with the strata’s insurer, the claim process may be more efficient. Another thing to consider is that, despite best efforts, sometimes things go wrong. Misunderstandings arise, and work deficiencies occur. These elements are common to any project involving multiple parties. While such setbacks can’t always be avoided, working with a firm that your insurance company has a partnership with can bring added support to those situations that may not otherwise exist.
Disclaimer: This bulletin is intended to provide readers with general information only and is not a confirmation of coverage. Readers are urged not to rely solely on the content of the bulletin, but to consult with appropriate professionals on a case-by-case basis.