Navigating Insurance Claims for Historic or Older Properties

Historic properties are living stories etched in architecture. With their unique craftsmanship and irreplaceable materials, these treasures demand specialized care, particularly when disasters strike. Filing insurance claims for such properties presents unique challenges, including valuation disputes, coverage gaps, and complex restoration costs. Property owners must be prepared to advocate for fair compensation, often requiring the expertise of public insurance adjusters to navigate the labyrinth of policy requirements and insurance company tactics.

Historic Property Coverage Starts With Understanding Your Insurance Policy

Before delving into the claims process, it is essential to understand the nuances of insurance policies for historic properties. Many standard policies are designed for modern structures and fail to address the unique needs of older or historic buildings. This lack of specialized coverage can leave property owners underinsured and vulnerable to financial losses.

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For instance, many policies include depreciation clauses that significantly reduce payouts for older materials. Additionally, standard policies might exclude certain restoration costs required to maintain historical accuracy. An example would be “functional replacement coverage”. This means if your windows are older wood casement windows and you have “functional replacement coverage,” the carrier will only pay for cheaper vinyl windows because they provide the same “functional” use as the wood windows.

Public Insurance Adjusters: Advocates for Property Owners

Public insurance adjusters serve as advocates exclusively for property owners. Unlike adjusters employed by insurance companies—whose primary aim is to minimize payouts—public adjusters work to ensure policyholders receive full and fair compensation. According to the National Association of Insurance Commissioners (NAIC), public adjusters bring specialized knowledge that can be invaluable for claims involving historic or older properties. Their expertise spans valuation, documentation, and policy interpretation—key factors in achieving a favorable outcome.

Public insurance adjusters also provide a critical service by managing the often overwhelming documentation and negotiation processes. From filing initial claims to challenging denials or low settlements, they act as the property owner’s dedicated representative throughout the entire process.

Common Scenarios in Claims for Historic Properties

Severe Weather Damage

Severe weather events, such as windstorms or hail, can wreak havoc on historic properties. A property owner might file a claim, only to face pushback from the insurer, who undervalues the damage or disputes the restoration costs. In such cases, a public adjuster can provide expert assessments to substantiate the claim and advocate for fair compensation.

Fire and Smoke Damage

Historic properties are often built with materials that are no longer in use today, making fire restoration complex and costly. Insurance companies may argue that full restoration is unnecessary or limit payouts based on outdated policy language. A knowledgeable public adjuster can help ensure the claim accounts for historically accurate restoration costs, fire code compliance, and smoke damage remediation.

The Role of Documentation in Insurance Claims

Accurate and thorough documentation is the cornerstone of a successful insurance claim for historic properties. Property owners should maintain detailed records, including:

• High-resolution photographs and/or videos of the property before and after the damage.
• Receipts and invoices for past restorations or renovations.
• Expert appraisals highlighting the historical value of specific features.

Public insurance adjusters can assist in compiling and organizing these documents, ensuring they meet the requirements of the insurance company. This proactive approach can prevent delays and strengthen the claim.

Best Practices for Property Owners

To protect their historic properties and simplify the claims process, owners should adopt proactive strategies:

1. Maintain Comprehensive Records: Keep detailed documentation of all historic preservation requirements, including receipts, photographs, and expert appraisals.
2. Understand Policy Terms: Review your insurance policy thoroughly to identify potential gaps in coverage.
3. Conduct Regular Assessments: Schedule inspections to identify and address potential issues before they escalate.
4. Engage Experts Early: Build relationships with restoration professionals and public adjusters before a claim arises. Having trusted experts in place can streamline the process when disaster strikes.
5. Invest in Specialized Coverage: Consider upgrading your insurance policy to include endorsements or riders tailored for historic properties.

Insurance Industry Tactics: Deny, Delay, and Underpay

The insurance industry is notorious for practices that disadvantage policyholders, such as denying valid claims, delaying payouts, and underpaying settlements. Property owners must be vigilant and prepared to counteract these strategies by leveraging the expertise of public adjusters and consumer advocacy groups like the American Policyholder Association (APA) and the National Association of Public Insurance Adjusters (NAPIA).

For example, insurance companies often use ambiguous policy language to justify lower settlements. Public adjusters’ expertise in policy interpretation can help counter these tactics and ensure a fair outcome.

Protecting the Value of Your Historic Property

Historic properties represent financial investments and are cultural and architectural treasures. Ensuring their preservation requires a proactive approach to insurance coverage and claims. By working with certified public adjusters, property owners can secure the resources needed to restore and maintain these valuable structures.

Public insurance adjusters also offer peace of mind, handling the complex and often contentious claims process on behalf of the property owner. Their involvement can make the difference between a frustrating experience and a successful settlement.

Schedule a call for a free claim and policy review with Velocity Public Insurance Adjusters. With certifications in water damage, structural drying, fire damage, and smoke damage, we’re equipped to help you navigate the complexities of insurance claims with confidence.