Hotel ownership can be highly profitable, but a single storm can place the entire enterprise in jeopardy. Hailstorms can break windows, damage shingles and siding, and ruin the carefully constructed landscape that makes your property inviting and attractive to customers. Unfortunately, insurance companies often delay, deny, or underpay hail claims, leading to the loss of the entire property. Attorney Bill Voss takes a look at the most common reasons hotel claims are denied after a hailstorm
Hotel Owners Often Have Trouble Collecting Payment for Hail Damage
Repairs to your property are not only necessary for the safety of your guests, they can impact your customer confidence. Even if visitors appreciate your efforts to repair and improve the property, they may still be reluctant to stay with you, draining your profits at a time when you need them most.
Owners in the hospitality industry may have trouble collecting fair value on their claims due to:
- Reporting requirements. Owners have a duty to inform insurance companies as quickly as possible to give the insurer time to investigate the extent of the damage. If your staff does not give you prompt notice of the damage, your insurance payment may be undervalued or denied completely.
- Third-party investigators. Large commercial insurance companies will often outsource their investigations to third-party firms. There can be varying degrees of quality in these contracted adjusters, and they may not have the knowledge or training to make an accurate estimation of damage.
- Policy disagreements. Insurers and policyholders often interpret insurance policies differently. For instance, roof replacement after a hailstorm may include replacement of damaged shingles and dented flashing only—while the same policy may be read as including coverage for water damage suffered as a result of the storm.
- Unfair denials. Insurers can may a variety of excuses as to why they have denied claims, including a failure to mitigate damages (such as covering roofs with tarps and blocking broken window panes) or claiming that the damage was caused by something other than a storm (such as a manufacturing defect or maintenance issue).
Hoteliers can suffer significant and unnecessary economic losses due to an insurer’s failure to provide fair payment. If your claim has been denied or undervalued, the Voss Law Firm can investigate the details and fight on your behalf. Simply fill out the contact form on this page today or order a free copy of our book, Commercial Property Owners Must Read This BEFORE Filing an Insurance Claim.