The Importance of Documenting Property Damage for Insurance Claims

Unforeseen events can wreak havoc on a short-term rental property. But on top of the devastating physical damage, property managers must contend with significant financial losses, property depreciation, and legal issues.

As you navigate through the aftermath of such a catastrophic event, it’s important to make detailed documentation for insurance claims, especially since your rental property hosts different people and families. Proper documentation of your damages reduces the chance of confusion and dispute while facilitating the entire claims process. As such, it can be of great aid in ensuring your rental property gets back on its feet.

The information below will explain why and how detailed records are so beneficial after property damage occurs. It will also detail how to document insurance claims to make sure the process moves smoothly.

Why Documentation for Insurance Claims Is Necessary

Making an accurate damage report helps your claims process by accomplishing the following:

Show Proof of Damage to Insurance Adjuster

While relatively few appreciate the prospect of writing or reading detailed documentation, the more information you can provide, the easier it becomes to back up your claim. An adjuster will see direct evidence of the damage you’ve suffered, so the more clear and organized documentation you can produce, the more they’ll have to work with.

Make Accurate Estimates of Damage

Detailed evidence of the damage makes assessing the financial costs of said damage much easier to arrive at. A comprehensive record can clarify how much you’ll need for repairs and restorations, which can help adjusters determine an accurate reflection of how much you can expect to receive in claims.

Speed Up the Claim-Filing Process

Accurate documentation gives insurance adjusters more details about the extent of the damage. The more information you can provide, the lower the chances your claim will require additional investigation and inquiries. And that, of course, makes the process much easier (and faster) to resolve. 

Avoid Disputes With the Insurer and Other Parties

Short-term and vacation rental properties see dozens, possibly hundreds, of visitors over their lifetime. Before-and-after photos from the disaster, therefore, will show how the property was damaged and can support an accurate timeline of events. 

That kind of transparency between the property manager and the adjuster can lessen the possibility of arguments and disputes. It also facilitates trust between the parties involved and can absolve renters from responsibilities they shouldn’t have to take on.

Protect Your Investment

Investing in a short-term rental property takes plenty of hard work and capital. Detailed documentation of any damage can preserve your reputation and minimize the potential loss of revenue during extended downtime. It also helps you manage risks and protect your long-term financial investment, which will hopefully work to regain (and retain) its overall value.

Steer Clear of Fraud

The time-consuming and often confusing insurance claims process can expose all parties to fraudulent or misleading assessments of property damage. The costs of the repairs can be exaggerated or misrepresented. Thorough documentation can, therefore, be a safeguard against dishonest practices and errors, as it gives a verifiable, factual basis for damages the adjuster can rely on.

Tips on Documenting Property Damage for Insurance Claims

How does one go about making an accurate damage report? “What documents do I need for insurance claims?” you might ask. Generally speaking, the more ways in which you can make and deliver evidence of property damage, the smoother the claims process will be. 

Here are a few strategies and suggestions to consider:

Produce Visual Proof

A collection of evidence spread across a diverse range of visual media is always a good idea for short-term rental managers. When taking over a property, take as many photographs as you can in all your units to establish its proper working condition.

After any substantial damage is incurred, take more photos and videos as you walk through the affected property. If you have the means, arrange for a 3D virtual tour so the adjuster gets a better idea of how it looks to someone walking among the wreckage. You can also draw up a blueprint detailing the floor plan, general measurements, and schematics.

Take Inventory of Damaged Items

A well-organized inventory needs to be conducted on a room-by-room basis. Just start in one room and take stock of every damaged item, writing down each in a notebook.

You must be thorough, though. Determine the year in which the damaged objects were purchased, as well as their costs. If at all possible, document the brands and serial numbers of the physical objects after you assume management of the property. When a disaster occurs, you’ll have a documented basis for establishing the worth of the items in question.

Remain calm, attentive, and objective as you move from area to area. Don’t rush the inventory process. It’s crucial to have complete and comprehensive information, so proceed deliberately.

Collect Proper Documentation

Along with generating your own report, it’s vital to get and retain documentation made by others to back up your insurance claim. Some of the paperwork you should compile includes the following:

• Receipts for the purchase of the property
• Receipts for expenses incurred in the repair process
• Estimates from the repair contractor
• A list of costs for removing debris, cleaning, and rebuilding the property
• Expenses for temporary living arrangements while the property is repaired if needed
• Complete documentation of any conversations with the adjuster, including the date, time, and subjects covered in the discussions

Having a workable file organization strategy in place before damages happen will also help to clear up confusion and mystery about how to handle things.

Safely: Helping Property Managers Get Back on Their Feet

Safely works with short-term rental property managers across the country to get the best insurance coverage in case of disaster and damage. Vacation rentals are our area of expertise, and managers who run multiple rental units can benefit from our complete slate of insurance products and processes. We offer full support to clients who are rebuilding their properties after unexpected accidents.

To find out more about Safely’s offerings and services, get in touch with our sales staff via our contact page. If you’re already a Safely customer and need help after a disaster, contact our support staff.