How to Advocate for Your Property During an Insurance Claim Process

Your insurance policy helps protect your short-term rental from unexpected damage. And if you’ve never had to file an insurance claim before, it might seem like a quick, uncomplicated process. 

Unfortunately, that isn’t always the case. Between documenting damage, taking steps to prevent further damage, explaining your claim to the insurance company, and making sure you receive the full benefit you’re entitled to, navigating a claim can feel like working your way through a never-ending maze. 

However, when you understand how to stand up for yourself and your property, you have a much better chance of securing a positive outcome. Here’s a look at how to advocate during insurance claims.

Document, Document, Document

Safety is always the most important factor in any incident, so if the damage to your home is the result of a crime or someone has been hurt, always make a police report or summon medical help if necessary. 

After that, it’s important to document all damage as thoroughly as you can. When it comes to knowing how to advocate during insurance claims, having complete documentation is arguably the most important step. 

Photo and video evidence is crucial — make sure to take both close-ups of damaged areas and wide-angle shots that show the entire home. Make sure you save these photos and videos in multiple places to reduce your risk of accidentally deleting them.

You also should make a written list of all damages. This is especially important — you don’t want to forget anything when you file your claim!

Do Short-Term Damage Control

In order to make sure you give the insurance company a clear idea of the damage to your property, you should clearly document the damage before any short-term repairs. Once you’ve documented everything, it’s important to protect your property by taking immediate steps to prevent further damage:

• Make temporary repairs if needed (like covering a broken window)
• Take steps to protect damaged areas of the home
• Check for structural and electrical hazards

This kind of damage control isn’t just the logical thing to do — it’s also likely to strengthen your claim. For example, if your roof is damaged in a storm, your insurance would likely pay to repair it. 

However, if you do nothing to protect the home and the interior suffers water damage several days later, your provider may not want to pay for that damage.

Know Your Policy

Having a thorough understanding of your insurance policy is essential if you want to be an effective advocate for yourself and your property. At Safely, we advise all of our clients (and clients-to-be) to read the fine print of any policy they sign. 

Many people simply skim the fine print or don’t read it at all because they find it confusing or overwhelming, but we’re always happy to help you better understand your short-term rental insurance policy.

Stay Organized

If you aren’t quite sure how to advocate during insurance claims, keeping everything organized is a great place to start. Some claims can take considerable time (and many conversations with your insurance agent) to resolve, and having the details of your claim at the top of your mind each time goes a long way. Put together a folder (either digital, hard-copy, or both) with the following:

• All documentation of damages
• A log of all conversations with the insurance company
• Records of all costs associated with the damage
• A timeline of the overall process

Documenting your conversations with your insurer is especially important. It’s useful for your own records, but it can also come in handy if there’s a dispute or a misunderstanding.

Communication Goes a Long Way

When figuring out how to advocate during insurance claims, many people emphasize negotiation strategies. That’s certainly important, but knowing how to communicate with your insurance agent is a critical element, too. Remaining friendly and polite is more likely to get you a positive result.

However, you can be polite while still standing up for yourself and your property. Don’t be afraid to push back on decisions or payment offers that seem unfair. 

It’s also fine to call to check in on your claim if you haven’t heard back from the insurance company in a while. Insurance adjusters must juggle multiple claims at once, and it’s not unheard of for one to slip through the cracks sometimes.

Understand ACV and RCV

You should do your best to understand every clause of your insurance policy, but knowing the difference between actual cash value (ACV) and replacement cost value (RCV) policies is particularly important when you’re trying to negotiate a claim. Here’s the difference:

• ACV Policies: Pay the estimated value (accounting for depreciation) of the damaged property
• RCV Policies: Pay the cost of replacing damaged property with new property

Here’s an example. Imagine your short-term rental has a nice coffee table that a guest destroyed. You bought it new for $500 several years ago, but it had a cracked leg and significant wear before it was destroyed. 

If you have an ACV policy, you’d be reimbursed for what the table was worth at the time it was destroyed — and because of the damage, that would be much less than $500. However, an RCV policy would pay you the full $500 (or the current cost of a new, similar coffee table).

Obtain Independent Estimates

People who understand how to advocate during insurance claims know that some insurers will try to underpay claims. Many homeowners unquestioningly accept the payouts they’re offered because they don’t know any better.

During the negotiation process, it’s wise to get a few cost estimates from reputable contractors. Make sure to get these estimates in writing. If your insurance company isn’t willing to budge on a too-low payout, seeing estimates for what repairs actually cost may make them reconsider.

The Right Insurance Company Makes a Difference

Dealing with a damaged short-term rental and the insurance claim that follows it is never an enjoyable experience, but the right insurance company can make the difference between a frustrating, convoluted process and a seamless one. 

At Safely, we’re proud to offer insurance tailored specifically to the needs of short-term rental properties. As an owner or property manager, you face unique challenges and deserve unique insurance coverage to match.

If you’re ready to get started or just want to learn more about what Safely has to offer, get in touch today!