Insurance Companies Use 5 Basic Factors to Estimate Fire Damage

4/20/2020 (Permalink)

Commercial fire in Leawood, KS

Insurance Companies Use 5 Basic Factors to Estimate Fire Damage

After a commercial fire in Leawood, KS, your first thoughts should be about preventing more damage. Typically, this includes tarping and boarding areas exposed to the weather, plus keeping employees and customers away from smoke and fire damage.
After things have been stabilized, you’ll need to get an estimate on the cost of restoration. Broadly speaking, this cost will be based on five factors:

1. Cost of lost structure
   
2. Cost of lost personal items
   
3. Amount of fire damage
   
4. Amount of smoke damage
   
5. Amount of water damage
   
   

1. The Value of the Commercial Structure Is Most Relevant
Obviously, an older building with 1,000 square feet won’t cost as much to replace as a larger, newer one. Some policies will cover a full replacement of the building, while others will only pay for market value of the lost areas. Make sure the estimate you’re given matches what the policy covers.
2. Your Policy May Cover Personal Items
Some insurance companies cover personal property as a matter of course, while others may require a rider. Review your coverage with your agent for clarification.
3. Fire Damage Is the Most Obvious
While there can be hidden heat damage, most of the time the areas burned are fairly obvious. This is always covered by a commercial policy, except in cases of arson.
4. Smoke Gets Everywhere in a Fire
Smoke damage can be hidden and is commonly found far beyond the limit of the flames. This is also always covered.
5. Water Damage Can Be the Most Extensive
In a major fire, huge amounts of water are used to smother the flames. All the impacted drywall and wood will absorb standing water, usually requiring replacement. Mold damage is also normal after a fire. Water damage directly from firefighting efforts is always covered, but mold may or may not be.
Also, beware of low-ball estimates. Less reputable companies like to tempt business owners with unrealistic prices, then add on all sorts of extras. Always use an experienced, professional local company with realistic costs to restore your business to its former condition.