Back HomeUnderstanding property damage insurance claims
Knowing how to deal with property damage insurance is an important aspect of property management. College Station property owners can find ways to make the most of their insurance policy by learning about coverage, claims, and more.
WHAT DOES PROPERTY DAMAGE INSURANCE COVER
In general, the homeowners’ policy covers the entire physical structure of your property. It offers protection for the physical structure of your house against damage unless it is specifically excluded. Rental property damage can include anything from cosmetic issues like chips, scratches, or scuffs on walls and floors, to complex ones like water leaks and structural problems.
Some of the most common types of property damage include:
- Vandalism and graffiti
- Theft (i.e. break-ins or tenants taking items without permission)
- Fire damage (due to negligence or faulty appliances)
- Smoke damage
- Electrical damage
- Water damage (due to leaks or burst pipes)
- Mold damage
- Structural and foundation issues
- Damage from natural disasters
- Damage caused by pets or wild animals
- Infestations (i.e. termites, rodents)
- Broken appliances
Knowing how to address different types of damage will help you minimize disruptions to daily operations and prevent substantial financial loss. Insurance coverage varies with each provider. Other factors, such as deductibles, policy limits, and the severity of the damage may also affect your ability to make a claim.
For example, a standard home policy typically may not cover damage from street flooding and earthquakes unless you have a separate policy. It may not cover personal belongings contained within the home or the costs of relocating from the property when it is heavily damaged.
WHAT TO DO
When getting ready to file a property damage insurance claim, start by making an inventory of your rental. Create a comprehensive list of damage to the structure and any valuables, such as appliances, electronics, furniture, and vehicles. Specify the parts of the property that have been damaged. Take clear photos or videos of the damage to help support your claim.
Keep any receipts for damaged items and additional living expenses or emergency repair costs incurred as a result of the damage. Lastly, do not remove any damaged portion of the property before your insurance provider could get the opportunity to inspect it.
If the damage is covered by insurance, you could work with a competent and fully licensed contractor to deal with repairs and emergency cleanup. The contractor should provide quality work and materials to ensure that the repairs hold up well over time.
It is generally advisable to get an insurance agent to assess your property’s value each year. They will also help you determine whether your existing policy is still adequate for the rental so that you could make upgrades as needed.
OTHER INSURANCE POLICIES AND FORMS OF PROTECTION
There are different insurance policies that offer protection to real estate investors, property managers, and their tenants:
- Liability Insurance – This type of insurance provides coverage for claims that may arise from accidents or injuries sustained on the property.
- Rental Income Protection – Also known as rental reimbursement or fair rental value, this type of insurance helps you recover a certain amount of lost income while your rental property is under repair. Most insurance policies have a 12-month cap for lost rent.
- Renters’ Insurance – This provides coverage for tenants’ possessions and liability should a guest get injured on the property. It does not cover any damage to the building itself.
Texas laws offer protection to individuals dealing with property damage. These laws enable property owners to seek financial reimbursement through tort law, which is meant to protect persons who have suffered damages due to the negligence of others. Texas tort law is characterized by the following:
- Statutory limits – Individuals must file a claim within two years of the date of the damage. There may be extensions for claimants who have not been in Texas for an extended period or if they can prove that they were physically unable to file a claim within two years.
- Comparative negligence – Claimants may not receive compensation if they were at least 51% responsible for the damages done to the property or if they could prevent it.
- The Texas Tort Claims Act – This tort reform allows persons to file damage claims against the government.
If you are seeking damages or compensation for property damage, consult a lawyer.
Learn more about Texas property management when you get in touch with Berkshire Hathaway HomeServices Caliber Realty, a full-service brokerage firm. Their real estate professionals are ready to assist you. You may contact them at 979.694.8844 or send a message for inquiries.
