How Large Property Loss Claims Can Become Larger -- And How to Avoid It
Thursday, October 13th, 2022 PropertyA large property loss claim can be worsened by theft or adverse weather events during the initial logistics stage if insurers don’t act quickly, a contractor expert warned during the Ontario Insurance Adjusters Association’s claims conference in Toronto Wednesday.
Insurers need to be especially prudent about handling claims right now, because, as an industry, ‘we’re just stretched max capacity,’ says Tom Streek, owner and founder of Rebuild Response, an Ontario-based contracting service.
Insurers can mitigate worsening claims costs by completing a thorough initial logistics stage to mitigate and manage further risks -- such as theft, heat or rain -- and sourcing and comparing rebuild estimates.
‘This [initial logistics] stage can go horribly wrong, and a claim can continue to get even worse and more expensive,’ says Streek. ‘[This process] has liability written all over it.’
Theft of large property loss sites is an issue, particularly in rural areas, says Streek. ‘I’ve seen the worst cases in rural [areas], especially where there are outbuildings and garages that haven’t been damaged and neighbours are picking through stuff, stealing whatever they can.’
