Crucial Tips for Filing Your Hurricane Damage Claim

An Adjuster’s Insight into a Board’s Fiduciary Duties

By Ken Shriberg / Published September 2024

As another hurricane season sweeps across Florida, condominium associations (COAs), homeowners’ associations (HOAs), and their residents brace for potential storms. With predictions for a particularly intense season, preparation is paramount. From understanding your insurance policy to knowing the critical steps to take before and after a hurricane, being prepared can make a significant difference in handling damage claims as a board navigates their fiduciary duties.

     This article provides key considerations from an insurance adjusting perspective to help navigate the complexities of hurricane damage claims effectively as well as damages caused by flood, fire, water pipe leaks, wind, hail, and other weather occurrences.

Pre-Hurricane Prep

Document Your Insurance Policy

     Before a storm hits, ensure you have a complete and easily accessible paper and digital copy of your association’s insurance policy. This includes the declaration pages, main policy jacket, and all endorsements and exclusions sections. It’s advisable to have a certified copy. Reach out to your commercial insurance agent for help in obtaining this. When a hurricane occurs, you’ll need to know exactly what your coverages are. Having this documentation handy saves time and stress during a crisis.

Review Your Policy with Professionals

     Conduct a thorough review of your policy with your insurance agent. Understanding your coverage details, potential exclusions, and the time-sensitive steps to take in the event of a weather-related loss is crucial. As a second set of eyes with a professional perspective, consultation from an association specialist licensed public adjusting firm can provide additional insights into potential gaps in your coverage and suggest necessary changes to your policy before a weather event occurs. These initial consultations are free of charge and can be done virtually.

Consider Policy Adjustments

     Based on the policy review, consider making changes if necessary. This might involve increasing coverage limits, adding endorsements for specific risks, obtaining discounts and credit, or clarifying any ambiguous terms. Making these adjustments ahead of time ensures that you are adequately covered and can assist in preventing complications during the claims process.

Know Your Fiduciary Duties and the Updated Law

     Both condominium and homeowner associations have pre- and post-loss hurricane fiduciary duties, such as making good faith efforts to prepare and keep the property protected, to preserve and protect official records prior to the hurricane and to recover official records which are lost or destroyed, and to recover all insurance monies owed to the association. Because damage is not always apparent to the visible eye, trained experts should be consulted.

     The 2024 legislative session introduced several key changes addressing various aspects of community association governance relating to hurricanes. Florida Statute Chapter 718.113, as amended, calls into question who pays to remove and reinstall hurricane shutters in condominium associations. It is important that the association confer with counsel and, if necessary, amend the declaration to clearly define the responsibility for the removal and reinstallation costs of hurricane protection before it becomes an issue during a repair or renovation project.

     Likewise, Florida Statute, Chapter 720.3035 for HOAs was amended to require HOA boards to adopt specifications for hurricane protections on homes and to prohibit associations from denying applications for hurricane protection by a parcel owner that conforms to specifications adopted by the board.

Post-hurricane Actions

     Communication is vital. After making sure that everyone is safe, provide frequent updates for the shareholders and explain what steps the board is taking.

Contact a Qualified Public Adjusting Firm

     Right after the weather event, contact a public adjusting firm that is experienced in large-loss association claims handling. If you are acting as a property manager or board member on behalf of your HOA, you have specific fiduciary duties to perform after a loss. These include documenting the damages, evaluating the property, and mitigating damages. It is best to familiarize yourself with all the required duties and adhere to the required timeframe as failure to do so can result in claim denial.

Engage Emergency Services

     A qualified public adjusting firm can coordinate all your emergency needs, including scheduling experienced emergency mitigation contractors for you. These emergency service companies include tarping, boarding up, water removal, mold remediation, debris removal, and possibly structural stabilization among other tasks. Having a professional public adjusting firm that specializes in emergency claims handling will help to smoothly guide you through the process from start to finish, ensuring that all necessary steps are taken and documented correctly.

Develop a Repair Budget

     A qualified public adjusting firm will guide you in determining the dollar value and scope of work required to bring the property back to its pre-loss condition. Once you have these details, the information can be used in preparing a base budget, in which you can solicit “apples to apples” bids from at least three qualified contractors.

     Remember, you should not execute a contract for final restoration repairs unless you have the necessary funds allocated in reserves, or alternatively have a written agreement for full payment from your insurance company!

Pitfalls to Avoid

Beware of Unlicensed and Uninsured Contractors

     In the aftermath of a hurricane, desperation can unfortunately lead to poor decisions, resulting in chaos. Avoid hiring contractors who knock on doors randomly as they may not be properly licensed, insured, and bonded or have adequate workers’ compensation. Initially bringing in a licensed public adjusting firm can help guide your decisions towards selecting qualified contractors who bid the damages in alignment with insurance scope of work so that all contracts are up to those same standards.

Use a Standardized Bidding Process

     For the building reconstruction, especially the larger losses, it is advisable to have a standardized bidding process. This ensures that all bids are uniform and comparable. A standardized process also helps in making informed decisions and prevents disputes over the scope and cost of the work.

Attorney Review of All Contracts

     Never sign any contract for reconstruction without having it reviewed by your lawyer or legal team first. Signing without legal oversight could lead to losing your rights regarding the reconstruction work and/or payment of same. This also ensures that the terms are fair and that your interests are protected.

Do Not Dispose of Damaged Items Prematurely

     Insurers have the right to inspect damaged property to assess the claim. Document by taking photos and do not throw away any damaged items except materials like porous, water-damaged drywall and carpeting (keep a sample) before they have been documented by your public adjusting firm and insurance company. Premature disposal can complicate your claim and potentially reduce the compensation you receive. Make sure this has been communicated to everyone who lives in the building.

     Navigating a hurricane or other property loss can be challenging, but being prepared and having the assistance of a qualified public adjusting firm can make a significant difference. Becker’s Hurricane Preparedness and Recovery Guide also helps boards and managers prepare for the approach as well as the aftermath of a storm or other weather disaster. 

Ken Shriberg

Public Insurance Adjuster, Affiliated with Becker’s Association Adjusting

     Ken Shriberg is affiliated with Becker’s Association Adjusting, a licensed and insured public adjusting firm exclusively and specifically experienced in serving community associations throughout Florida. They assist with claims from all weather-related events, including hurricanes, storms, water damage, fire, theft and vandalism, and mold and roof leaks. Association Adjusting provides pre-loss policy review consultations, on-site damage analysis and documentation, loss estimate valuation, negotiation, and claim settlement with insurance companies. Ken has been a licensed public insurance adjuster specializing in association loss claims since 2006 and is a longtime member of the Florida Association of Public Insurance Adjusters (FAPIA), including as a retired board director. Ken also has 40 years of experience in multi-unit commercial property restoration/reconstruction projects. For more information visit www.associationadjusting.com.