9 Steps to Making a Property Insurance Claim
April 8, 2023 
Photo: Hortica
Managing a horticultural business is no easy feat. From ensuring your customers are happy to maintaining your property and balancing commitments to employees, there’s a lot to deal with. Unexpected property loss or damage can make this already difficult situation even more challenging.
The process of filing a property insurance claim may seem like a daunting task, but the steps are pretty straightforward. I’ll walk you through a best practices approach to filing a property insurance claim for your horticultural business.
When to File a Claim
No matter what led to the damage, submitting a claim to your insurance provider may be inevitable particularly in the following situations:
- Fire: A fire can quickly destroy crops and cause extensive damage to buildings and equipment — and cause major production delays. Your future income could be impacted if you’re not able to plant your next crop due to damage.
- Theft: Equipment and cash theft — whether by external thieves or dishonest employees — is a common source of losses at greenhouses and nurseries. You might think you’ve protected your equipment, but thieves are resourceful. If they do manage to steal something, your insurance can help you cover the cost.
- Weather damage: You’re in the type of business that continuously faces the threat of hail, lightning, high winds, and tornadoes. Depending on where you’re located, there may also be hurricanes and snowstorms. Significant storm damage repairs can be expensive and delay how quickly you can get your business up and running again. Your property insurance can help minimize your losses when covered storm damage affects your operation.
- Equipment breakdowns: Your equipment and tools — like your boiler, generator, and potting machinery — are vital for your operations. If they break down, you could lose weeks of productivity and revenue. Your equipment breakdown coverage can help reduce your repair and replacement costs and get your operations back on track.
Whether the damage is minimal or monumental, your commercial property insurance can help protect your bottom line during and after the recovery process.
How to File a Property Insurance Claim
First of all, dealing with property damage to your greenhouse can be an upsetting experience on several levels. You have the immediate worry of assessing the damage and protecting your employees and inventory. And you’re thinking about how to start the recovery process as soon as possible. Don’t be afraid to lean on your insurer during a crisis. Their claims professionals can guide you.
Here’s a step-by-step guide to filing a commercial property insurance claim:
- Act early: The less timely you are in reporting your claim, the more difficult it is for your insurer to properly investigate it. This could lead to a declination of coverage or possibly a reduced claim payment.
- Contact the proper authorities: In cases of property damage such as vandalism or malicious mischief, contact your local authorities and file a report. In some cases, insurance companies won’t pay for losses you incur due to events such as theft or vandalism if there’s no police report available.
- Notify your insurance agent or insurance company: The initial incident report to your insurance provider to begin a claims process is known as the first notice of loss (FNOL). This step is very important, as it sets the claims process in motion.
- Gather information: Be as thorough as possible in documenting the damage when you file your claim. Take photos or videos of the damage as soon as possible — and if your policy requires you to mitigate potential damages — keep any receipts or invoices related to your mitigation efforts. The following details can help support your claim:
- Date and time the damage/incident occurred
- Cause of the damage
- Location of the damage
- A description of the damage and affected property
- Photos and/or videos of the incident/damage
- Meet with the adjuster: Once the FNOL is in place, it’s assigned to a claims adjuster who gathers further information, inspects the damage, and ultimately determines the amount of the insurance claim settlement.
- Document and follow up: Don’t rely solely on the insurance company to keep track of all the details surrounding your claim. Complete your own company incident report. If this isn’t already part of your loss control program, add it. Be sure to:
- Document all of the details from the incident
- Track the claims process
- Consider getting an estimate from different companies for repairs
- Compare your report with what the insurance company provides you
- Contact your insurance provider with any discrepancies
- Stay in touch with your insurer: Be proactive and keep in contact with your insurer so you can stay updated throughout the claims process. If you have questions or concerns at any time, don’t hesitate to contact them.
- Review the settlement offer: Based on the property damage estimate and your insurance coverages, your provider may offer a settlement. This is the amount of money they agree to give you to repair or replace your damaged property minus any deductible amounts that you’re responsible for paying. You should carefully review the settlement and negotiate if necessary.
- Your claim is settled: If a settlement payment is issued, use the funds to complete your property damage repairs. Once the dust settles a bit, take some time to re-evaluate your property insurance coverage and work with your agent to update your policy as needed.
You Can Rely on Your Insurer
The tips above should give you a head start, but don’t be afraid to communicate with your insurer when a claim arises. Remember, your claims representative is there to answer your questions about the claims process.
In a niche industry where controlled environments are critical, a claim is often the moment you’ll see the greatest benefits of working with a specialized insurer. They’ll have the expertise and knowledge necessary to understand the nuances of your business. It’s also why insurance is so important for protecting your greenhouse.
As always, it’s still best to talk with your agent and local experts for any additional recommendations they may have regarding your claims management process.
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