Most property insurance policyholders anticipate that freezing weather brings burst pipes, intense storms that can test a roof’s integrity, and other unforeseen emergencies that may require filing an insurance claim to complete repairs. But occasionally, damages originate from neighboring properties that may also impact your own property and necessitate a claim.
Imagine if the house next door or a building nearby caught fire. Firefighters contained the flames and prevented them from spreading, but part of your property was left covered with soot and smelling like smoke. In the insurance industry, this type of damage is not uncommon, particularly in urban areas where homes and commercial storefront properties may share walls or have little space between them.
The first step in recovering a settlement from this type of damage is recognizing it quickly. If a fire occurs at an adjacent property, thoroughly examine your property to check for signs of damage.
Carefully walk through the areas of your home or business that were closest to the damage and look closely for signs that your property might have been impacted.
Wall surfaces and synthetic carpet are susceptible to smoke odor and permanent stains. In appearance, smoke damage can vary. Sometimes it is obvious with physical signs on walls or surfaces such as:
Other times, smoke damage is more challenging to identify:
Don’t forget to check air ducts, attics and exteriors, and other areas that might go unnoticed.
For example, when large fires occur, neighboring properties often experience smoke damage that appears as soot or black marks near air vents and on internal and external walls and surfaces. But visual damages are not the only thing that can signal a physical loss after a fire.
The following are also types of damage that can constitute a loss, in specific instances and depending on your policy language:
Scott G. Johnson, a partner with Robins Kaplan LLP notes, “Most property insurance policies require ‘physical loss or damage’ to insured property as a threshold requirement for coverage. In most property damage losses, this requirement is easily met. When, for example, insured property is damaged by fire, water, or wind, there always will be a physical change or structural damage to that property. But when the insured property’s structure is unaltered, at least to the naked eye, and the insured claims the property’s value, usefulness, or functionality has been lost or diminished, questions arise whether coverage is triggered” (Johnson, 2019, p. 96).
Johnson goes on to highlight that “courts have not uniformly interpreted physical loss or damage requirements” (Johnson, 2019, p. 96). He cautions that some courts apply a literally definition of “physical” as a guide, while “other courts have determined that the loss of use, functionality, or reliability can, under specific circumstances, constitute physical loss or damage even in the absence of any demonstrable structural damage or other alteration to the insured property” (Johnson, 2019, p. 96).
Generally, smoke damage is considered a “covered peril” and is covered by insurance (Louderback and Lee, 2023). Regardless of where the incident originated (a wildfire or a neighbor’s home), if you discover smoke damage to your property, you will need to reference your policy document and file a claim with your insurance carrier if you believe it is a covered loss. But you don’t have to navigate your policy alone to seek the settlement you are entitled to.
The team at Tiger Adjusters is well-versed in identifying and documenting fire and smoke damage and can take the lead on negotiating with your insurance carrier to settle your claim as quickly as possible. We thoroughly inspect the damage and then spearhead the claim process to ensure your insurance company acts according to your policy terms.
If you need assistance recovering a fair settlement for your property damage claim, we can help. Contact us today to discuss your claim with a licensed public adjuster.
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BIBLIOGRAPHY
Johnson, S. G. (2019). What Constitutes Physical Loss or Damage in a Property Insurance Policy? Tort Trial & Insurance Practice Law Journal, 54(1), 96-123. Retrieved from: https://www.robinskaplan.com/-/media/pdfs/what-constitutes-physical-loss-or-damage-in-a-property-insurance-policy.pdf
Loudenback, T., Lee, R. (May 3, 2023). Homeowners Insurance Covers Your Home, Personal Property, Personal Liability, and Additional Living Expenses. Business Insider. Retrieved from:
https://www.businessinsider.com/personal-finance/what-does-homeowners-insurance-cover
