Administering Insurance Claims

by Alan Alexander and Richard Muhlebach, CPM

The following excerpts are from IREM�s Key Report, Lease Administration Simplified (IREM Copyright, 2009).

The property manager is almost always responsible for the administration of insurance claims for the property. Some property owners will have very specific policies and procedures to be followed in the event of an insurance claim. Many of their policies and procedures also will apply to an uninsured loss; however, this discussion will be directed primarily to insured claims.

If an event takes place within the property that may lead to an insurance claim or legal action, it should be reported to the owners of the property immediately. The property manger should take immediate steps to protect any people involved by removing them from the situation, if it is prudent, and getting medical help, if needed. The second priority is to protect and secure the property. Even though the property manager is guided by a budget and spending limits they do not apply in emergency situations. The property manager may spend any reasonable amount to protect life and then to secure the property.

It is prudent to take pictures when possible and document the incident by keeping good records of what actions and the date they were taken and a very detailed accounting for the expenses incurred. When there is a claim, the properties' insurance company will insist on being contacted at the earliest possible date, as they will be able to offer assistance to protecting the property and they may have specific procedures for reporting and handling the claim and the property repairs.