You hire a contractor, plumber, restoration company, landscaper, moving company, or another business expecting the job to be completed correctly. But what happens when that company’s work causes damage to your home or commercial property?
A plumbing company could accidentally cause a major leak. A contractor could damage your roof during construction. A service technician could damage electrical equipment. In other situations, work performed on a neighboring property could cause damage to yours.
When a business causes property damage, determining which insurance coverage may apply can quickly become complicated. Understanding your options and properly documenting the loss are important steps toward protecting your property damage claim.
What Types of Businesses Can Cause Property Damage?
Almost any company performing work on or near your property could accidentally cause damage.
Common examples include:
- General contractors
- Plumbers
- Roofing companies
- HVAC contractors
- Restoration companies
- Electricians
- Landscapers and tree services
- Moving companies
- Cleaning companies
- Construction companies
- Property management companies
- Maintenance providers
The type of business involved is only one part of the situation. How the damage occurred and what insurance coverage applies can also affect how the claim is handled.
Examples of Business-Caused Property Damage
Consider hiring a plumbing company to replace a pipe inside your home. If a connection is improperly installed and later fails, water could spread through walls, flooring, cabinetry, and other areas of the property.
Or imagine a roofing contractor working on your commercial building. During the project, part of the roof is left improperly protected and rain enters the building, damaging ceilings, walls, inventory, or equipment.
Other examples could include a moving company damaging floors and walls, construction equipment damaging a neighboring structure, or a tree service accidentally damaging a roof.
In each case, a business’s actions may have contributed to the property loss.
Who Pays When a Business Damages Your Property?
There isn’t one answer that applies to every situation.
Depending on how the damage occurred, there may be several potential sources of insurance coverage.
These could include:
- The business’s liability insurance
- A contractor’s commercial general liability coverage
- Your own property insurance
- Insurance maintained by a property owner or association
- Other applicable coverage
Some incidents can involve more than one insurer.
Determining legal responsibility is different from documenting and presenting an insurance claim. If there is a dispute regarding negligence or liability, you may need to consult an attorney.
Should You File With Your Insurance or the Business’s Insurance?
Property owners often wonder whether they should contact their own insurance company or pursue a claim through the business’s insurer.
The appropriate approach depends on the circumstances of the loss and the insurance policies involved.
Before making assumptions about which company should pay, gather as much information as possible about the incident.
Ask the business for its insurance information and document the name of the company, the individuals performing the work, what they were doing, and when the damage occurred.
If your own insurance carrier is notified, keep records of all communications and claim information.
Document the Damage Immediately
Evidence is extremely important when property damage may have been caused by another business.
As soon as you discover the loss, photograph and video the affected areas.
Try to document:
- The source of the damage
- All visibly affected areas
- Equipment or materials involved
- The work being performed
- Damaged personal property
- Water intrusion or structural damage
- The condition of surrounding areas
You should also save contracts, invoices, work orders, emails, text messages, receipts, and other documents involving the business.
If employees or contractors were present when the incident happened, record their names and any relevant information about what occurred.
Be Careful About Cleaning Up Too Quickly
Property owners understandably want to begin repairs immediately.
You should take reasonable emergency measures to protect the property and prevent additional damage. However, avoid destroying important evidence whenever possible.
For example, if a contractor damages a plumbing line and causes water damage, removing all affected drywall and flooring before the loss is documented could make it more difficult to establish the original extent of the damage.
Photograph everything before cleanup begins and preserve damaged materials when practical.
Hidden Damage Can Make the Claim More Complicated
Damage caused by a business may extend far beyond what you can see.
Water can travel behind walls and underneath flooring. Construction work can affect underlying structural components. Electrical damage may not become obvious immediately.
A complete evaluation may uncover damage involving:
- Drywall
- Insulation
- Flooring
- Cabinets
- Electrical systems
- Plumbing
- Roofing components
- Structural materials
- Personal property
An initial insurance estimate may not necessarily account for every affected area.
That is why thoroughly evaluating the loss before agreeing to a settlement can be so important.
What Is a Third-Party Property Damage Claim?
When a business or another outside party causes damage to property you own, the resulting insurance matter may involve a third-party property damage claim.
Rather than dealing exclusively with your own property insurance carrier, you may be pursuing compensation through applicable coverage maintained by the company that caused the damage.
Third-party claims can involve questions about the cause of the loss, responsibility, applicable insurance coverage, repair costs, and the complete extent of the damage.
Having organized documentation can make it easier to present what happened and demonstrate the amount of the property loss.
What If the Business Says It Isn’t Responsible?
A company may dispute how the damage occurred or argue that someone else was responsible.
Don’t allow a disagreement to prevent you from documenting the loss.
Continue preserving photographs, videos, correspondence, contracts, reports, estimates, and other evidence.
If determining responsibility becomes a legal dispute, an attorney may need to evaluate the circumstances. A public adjuster’s role is different. Public adjusters assist with qualifying property insurance claims rather than making legal determinations about negligence.
Can a Public Adjuster Help When a Business Causes Damage?
Depending on the circumstances and applicable insurance coverage, a licensed public adjuster may be able to assist with the property damage portion of the insurance claim.
Florida’s Best Public Adjusters can help qualifying claimants with tasks such as:
- Inspecting the damaged property
- Documenting affected areas
- Preparing a detailed scope of loss
- Organizing claim documentation
- Evaluating property repair costs
- Communicating with insurance representatives
- Negotiating covered property damage when appropriate
Most importantly, a public adjuster represents the claimant’s interests rather than working for the insurance company.
Don’t Accept a Settlement Before Understanding the Full Loss
If an insurance company makes an offer, review exactly what is included before accepting it.
Ask whether the estimate accounts for all affected areas and whether additional damage could be hidden behind walls, underneath floors, or elsewhere in the property.
A settlement that appears reasonable initially may not be sufficient if additional repairs become necessary later.
Properly evaluating the loss before resolving the claim can help reduce the risk of unexpected out-of-pocket repair expenses.
Get Help With Business-Caused Property Damage in Florida
When a contractor, service provider, construction company, or other business damages your property, dealing with the insurance process can add another layer of frustration to an already difficult situation.
Florida’s Best Public Adjusters helps property owners and qualifying third-party claimants document covered property losses and navigate the insurance claim process.
We work for you, not the insurance company.
If a business has damaged your Florida home, condo, rental property, or commercial building, contact Florida’s Best Public Adjusters to discuss your situation and determine how we may be able to assist with your property damage claim.
Frequently Asked Questions
What should I do first if a contractor or business damages my property?
Document the damage immediately with photographs and videos. Collect the company’s contact and insurance information, preserve contracts and work orders, and take reasonable steps to prevent additional damage.
Can I file a claim against a company’s insurance?
Depending on the circumstances and applicable coverage, the business’s liability insurance may be one potential source of recovery for property damage it caused.
Should I contact my own insurance company?
Your own property insurance may also be relevant depending on the circumstances and your policy. Because multiple insurance policies can sometimes be involved, review your specific situation before assuming which insurer should handle the loss.
Can a public adjuster prove the business was negligent?
A public adjuster does not make legal determinations regarding negligence or liability. A public adjuster may assist with documenting, preparing, and negotiating a qualifying property damage insurance claim. Legal disputes regarding responsibility should be discussed with an attorney.
