Property Insurance Claims (Fire, Flood & Storm Loss)

Property damage is one of those things most people never expect to deal with until it happens to them. One day, a home or business is functioning normally, then the next, a fire, flood, or severe storm changes everything in a matter of minutes. Because dealing with the fallout of a loss often takes priority, issues involving the preparation and a submission of an insurance claim and coverage may be overlooked.  Property insurance policies may require that the insured take specific measures within a certain time to fully preserve coverage, so having a team of Maryland insurance lawyers who have extensive experience handling property insurance claims by way of fire, flood, and storm loss in your corner is paramount. Contact Brown & Bullock today.

Types of Property Insurance Policies in Maryland

Property insurance policies vary depending on the type of property involved and the insurer issuing the policy. While many policies share similar labels, their actual coverage can be very different depending on coverage endorsements and exclusions.

Commercial property insurance policies are typically held by business owners and may cover buildings, equipment, inventory, and income losses resulting from a covered event, subject to policy language, endorsements and exclusions.

Homeowners insurance policies generally apply to owner-occupied residences and often include coverage for the dwelling itself, personal property, liability, and additional living expenses when a covered loss makes the home uninhabitable.

Landlord and rental property insurance is designed for non-owner-occupied properties and frequently differs from homeowners coverage in valuation methods, exclusions, and how losses are paid.

Policy language also varies between insurers and regions. Coverage disputes often turn on how a single phrase or definition is interpreted, so it is critical to understand and identify potential gaps in coverage before a loss occurs.

Common Causes of Fire Loss Claims

Fire damage claims are among the most heavily scrutinized property insurance claims, often due to the severity of the loss. Common causes of fire loss include, but are not limited to:

• Electrical system failures
• Kitchen fires caused by unattended cooking
• Malfunctioning heating systems or space heaters
• Appliance defects or overheating
• Chimney or fireplace-related fires
• Accidental fires involving candles or smoking materials

Common Causes of Flood Loss Claims

Flood losses are especially challenging for property owners, particularly in coastal and low-lying areas. Common causes of flood loss claims can include:

• Heavy rainfall causing surface water intrusion
• Overflowing rivers, streams, or tidal waters
• Storm surge associated with hurricanes and tropical storms
• Sewer or drain backups
• Groundwater seepage into basements or foundations

Unfortunately, many homeowners insurance policies exclude flood damage, which often surprises policyholders after a major weather event.

Storm and Weather-Related Claims

Severe weather is a frequent cause of property damage throughout Maryland, and these claims often involve disputes over causation, age and scope of loss.  Common causes of such claims can include:

• Hurricanes and tropical storms
• Severe wind damage to roofs and exterior structures
• Hail damage affecting shingles, siding, and windows
• Ice storms leading to collapses or water intrusion
• Falling trees and storm debris impacting buildings

What Property Insurance Typically Covers

Coverage depends on the specific policy, but property insurance commonly addresses several categories of loss. First party property insurance policy often provide coverage for:

• Structural damage to buildings caused by a covered peril
• Personal property losses
• Additional living expenses
• Damaged other structures (i.e., garages, out-buildings, and other similar buildings on the covered property)

Structural damage to buildings is often covered when caused by a covered peril.

Personal property losses may also be included, though valuation methods such as actual cash value versus replacement cost can significantly affect claim payouts.

Many policies provide coverage for additional living expenses or business interruption losses when a property cannot be used following a covered event.

The Property Insurance Claim Process in Maryland

After a fire, flood, or major storm, most property owners are left trying to balance repairs, displacement, and financial stress while also navigating the insurance claim process.

The Maryland Insurance Administration provides information and advice for what to do after a loss.  Among other things, the MIA recommends that policyholders:

1. Report the loss to the insurance company as soon as possible. Most policies require prompt notice, and delays can give insurers an excuse to question coverage. When reporting the claim, it is important to provide basic facts without speculating about causes or minimizing damage.
2. Protect your property from further damage. This does not mean completing full repairs right away, but rather taking reasonable steps to prevent additional loss, such as boarding up openings, tarping damaged roofs, or shutting off water sources.
3. Carefully document the damage as soon as it is safe to do so. Take photographs and videos of all damage. Keep a written timeline of events and save all recipes related to temporary repairs, cleanup, and alternative living arrangements.

Once a claim has been filed, the insurer will typically assign an adjuster to investigate the claim. This may involve site inspections, interviews, and requests for additional information. During this stage, you must respond accurately and keep copies of everything provided.  The insurer will then evaluate coverage and issue a decision, which may include partial payment, full payment, or denial. Unfortunately, it is not uncommon for initial payments to fall well short of what is needed to fully restore the property.

When property damage claims cannot be fully resolved through the claims adjustment process alone, it may be necessary to initiate a formal claim against your insurer, whether through an administrative claim with the MIA or in the Maryland circuit courts. During this process, it’s paramount to have a knowledgeable Maryland insurance lawyer in your corner to advise you of your rights and fight for the full and fair damages to which you are entitled.

Contact Brown & Bullock for Assistance with Property Insurance Claims

Ultimately, property insurance claims involving fire, flood, and storm damage are rarely straightforward.  Contact us for an initial consultation today.