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Cover Story

A Box of Chocolates?

Know What to Expect with Condominium Association Losses

A Box of Chocolates?

Hurricane season. While these two words evoke apprehension in the hearts of some, there are those who look forward to this time of year with unusual excitement and anticipation. For insurance adjusters, this time of year always gets the old gears rolling.

 

No matter how many years a field adjuster has been handling losses, no two claims are ever the same. From water-damaged homes to hurricane-damaged oil refineries, there is a myriad of losses in between and beyond that an adjuster might handle on a daily basis. Tom Hanks’ line in the movie Forrest Gump may well be the insurance adjuster’s mantra: “Adjusting claims is like a box of chocolates. You never know what you’re gunna get.”

 

This is especially true when it comes to handling condominium association losses. But there are some guidelines and red flags to look for when handling such losses. Whether you are a newbie or a veteran in the insurance adjusting playing field, consider the following strategies to keep surprises to a minimum.

 

Time Is of the Essence

Upon receiving the new loss, make immediate contact with the insured to schedule an initial inspection. Due to the large and complex nature of condominium losses, public adjusters will usually be involved. Beware that public adjusters often attempt to keep you from inspecting a property to delay the process until their estimate is complete. This common tactic will put you up against a very tight deadline, which they can use against you to press a quick settlement. Therefore, it is imperative to be familiar with individual state claim deadlines, such as Florida’s New Emergency Order. This order was passed in May 2007 and requires all residential claims — including condominium associations and unit-owner claims — to be handled within 90 days.

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