Hiring a professional to oversee your claim for reinstatement works can save you a lot of money in the long run, writes KEVIN HOLLINGSWORTH
MOST PEOPLE at some stage will have to deal with a property-related insurance claim. It could be a break-in, a burst pipe or, as we’ve seen recently, flooding.
The recent flooding is unprecedented and the clean-up is a huge challenge for those affected.
For an ordinary claim, the process is relatively straightforward. First of all, the policyholder contacts the insurance company and is advised to prepare and submit a claim. The policyholder has the option of appointing a loss assessor to assist them in preparing and submitting the claim. But the policyholder must pay the cost of hiring the assessor. The insurance company appoints a loss adjuster to review the claim.
The loss assessor and loss adjuster then negotiate the claim and a settlement figure is arrived at. The policyholder then proceeds to get the work done within the budget allowed for.
If the reinstatement works are complex policyholders are entitled to hire a surveyor to supervise the works as part of the insurance claim. This decision will rest with the loss adjuster. Most people don’t realise this and undertake the management of the works themselves. In many cases the work proceeds unsupervised.
The loss assessor may or may not be brought back in to sign-off on the completed works to enable a final payment from the insurance company. At this point it is too late to establish if anything has been overlooked which might cause progressive damage in the future. If the adjuster approves the fees for a chartered surveyor, he/she can arrange for the strip-out works and drying-out works to be undertaken and for the reinstatement to be tendered and consequently managed.
This route has substantially less risk for the policyholder as the claim will be the cost returned in the tender and the stripping-out/drying-out works. This means that the policyholder does not have to try and fit the works into a predetermined budget which was arrived at without all of the facts being known.
Therefore, it is in your interests to ascertain if a surveyor can be retained under the claim to supervise the work. Even if it isn’t, it could be worth your while to engage or even consult a surveyor as he/she might save you money in the long run and ensure the reinstatement works are carried out correctly.
A key part of any claim is to determine a reasonable and accurate scope of works. It is essential that there is a speedy response to any flooding in order to minimise damage and restoration costs.
In particular with a major flooding incident, the secondary effects – such as mould growth, corrosion and structural deterioration – can be potentially more significant than the initial damage.
As well as dealing with the incident as quickly as possible, it is also important to determine the extent of the damage. This can be problematic, especially in the early stages. For example, if you strip-out a floor to look at the sub-floor a call has to be made on how far to go with the replacement of timbers. Your loss assessor may not have the experience to make that decision and often he/she will not be able to agree an immediate figure with the adjuster because the extent of the damage is not visible. Other areas where surveyors can provide very useful assistance are in the hiring of appropriate contractors, managing the contract and contract administration, organising pre-start site meetings and ensuring final payments are not made to the contractor until the property owner is fully satisfied with all aspects of the work.
Naturally, most people are keen to return to their homes as soon as possible after a traumatic incident such as flooding. But homeowners should also consider what is best in the long term. For example, before any building work can start a property needs to be thoroughly dried out. If short cuts are taken here, odours and problems with damp can persist for a long time. Depending on the severity of the flooding, drying out periods can vary from four to 16 weeks.
Overall, the most important issue is to minimise the progressive damage and to ensure that nothing is overlooked which could lead to further problems often months after the homeowner moves back in.
Kevin Hollingsworth is a member of the Society of Chartered Surveyors (www.scs.ie) and works with McGovern Surveyors in Dublin
What to do if you're flooded
1) Switch off electrical mains before entering the property
2) Remove free-standing water
3) Photograph all damage, including contents
4) Remove damaged items to a skip and personal items to storage
5) Ascertain if a chartered surveyor can be hired to supervise reinstatement works
6) Decrease relative humidity to stabilise the environment
7) Dry out affected areas thoroughly
8) Sanitise all affected areas
9) Reinstate damaged elements of the building and fittings
10) Test, certify and commission all services (electrical, plumbing, heating and drainage)
