What to do after Fire Damage to your Commercial Property

Fire damage to a commercial property sets off a chain of decisions that most business owners are not prepared for. And they are under time pressure, loads of stress. In the days that follow, the choices you make will shape the outcome of your commercial fire damage claim. This guide covers the steps that protect your position, from the moment the fire service releases the scene to the point where your claim is fully settled.

The insurance process begins the moment you report a loss. What you say, what you sign, and what you allow to be removed or repaired from that point forward all become part of the claim record. Business owners who act without independent advice in the early hours often find themselves locked into positions that are difficult to reverse.Very very difficult.

Your insurer has experienced professionals on their team ready to move quickly once a loss is reported. The loss adjuster, who works on behalf of your insurer, may be on site within days. Their role is to investigate the loss and recommend a settlement figure. Their professional obligation runs in favour of the insurer, not to you the business owner or policy holder.

Appointing an independent loss assessor as early as possible is the single most important step you can ever take. See our commercial property claims service for full details on how we handle this process from day one.

When the fire service releases the premises for you to access, the order in which you act matters. Moving too fast, or in the wrong sequence, can compromise your claim before it has properly even begun.

• Confirm the building is safe to enter. Do not re-enter until the fire service or a structural engineer has confirmed the structure is safe. Fire-damaged buildings can be unstable even where they appear intact. Safety first here.
• Notify your insurer, briefly. Your policy requires prompt notification. Report that a fire has occurred, but give no detailed account of the cause, agree to nothing and decline to make any statement beyond the basic facts at this stage. It can be emotional at this point, but try to keep the emotions in check.
• Appoint a loss assessor before the loss adjuster arrives. Once your insurer appoints a loss adjuster, their investigation begins. An independent loss assessor appointed at the same time can attend joint inspections and ensure your interests are represented from day one.
• Secure the property. Board windows, lock entrances and arrange emergency hoarding where the building is exposed. Keep every receipt. These costs are almost always recoverable under your policy. It can also avoid further damage being done, incurring further losses for your insurer or for you, depending on your policy.
• Document everything before anything moves. Photograph and video the full extent of the damage before any clearance, cleaning, or removal takes place. This evidence base is central to a successful commercial fire damage claim.

A well-prepared claim extends well beyond the visible burn damage. Many business owners are surprised by the full scope of what commercial property policies can include.

The cost of reinstating the physical structure to its pre-loss condition, including improvements made before the fire. Professional fees for architects, structural engineers, and planning consultants are usually claimable where reinstatement requires them.

Machinery, computers, trade equipment and stock all form part of your claim. Where items are destroyed rather than damaged, you will need to demonstrate their pre-loss value. Where records have been lost in the fire, a loss assessor can help reconstruct valuations from supplier invoices, purchase records, and industry benchmarks.

If you are a commercial tenant who fitted out your premises, those improvements may be claimable under your contents policy, even where they are physically attached to the building.

The mistakes made in the days immediately after a fire are often the ones that cost the most.

• Do not dispose of damaged items before they have been inspected and recorded, even if they appear worthless. The insurer and loss adjuster are entitled to inspect them.
• Do not instruct reinstatement contractors appointed by your insurer without first understanding the full scope and specification of the proposed works.
• Do not agree a settlement figure under time pressure. A figure presented quickly may not reflect the full extent of your losses.You need the full picture before agreeing any figure.
• Do not make statements about the cause of the fire without professional advice. The cause can affect coverage under some policy wordings.
• Do not ignore the loss adjuster. Cooperate fully, but be clear in your head that they represent the insurer, not you. Even the nice guys.
• Do not assume your policy wording means what you think it means. Commercial policies contain exclusions, conditions and sub-limits that can significantly affect your entitlement.

Two professionals are typically involved in a commercial fire claim. They are not on the same side.

The loss adjuster is appointed by and paid by your insurer the Insurance Company. Their role is to investigate the loss, verify the claim, and make recommendations about what should be paid. They are not necessarily acting against you, but their professional obligation is to the insurer.

The loss assessor is appointed by and paid by you. Their role is to prepare, document, and present your claim in full, to ensure nothing is overlooked, to challenge any undervaluation, and to negotiate the best possible outcome on your behalf. The earlier you appoint one, the more effectively your position is protected.

Claims 365 is a regulated and authorised loss assessing practice. We are regulated by the Central Bank of Ireland (No. C510265) for clients in Donegal and the Republic of Ireland. We are regulated by the Financial Conduct Authority (FRN 1011189) for clients in Derry and Northern Ireland. We are also a Member of the Chartered Institute of Loss Adjusters.

The commercial property scene across Donegal and Derry is varied and this affects how claims are handled.

A fire in a listed building in Derry's historic walled city carries different reinstatement challenges to a claim arising from a warehouse unit in Letterkenny Business Park or a retail premises in Donegal Town. Planning permissions, protected structure constraints and contractor availability in rural parts of Donegal can all affect how quickly and how fully a claim is settled.

Business interruption calculations vary significantly depending on the nature of the business. A hospitality venue in Derry City centre, a seasonal tourism business on the Donegal coast or a trade supplier serving the wider North West will each have different trading patterns, fixed costs, and exposure to interruption losses. Accurate calculation of these losses requires sector knowledge as well as insurance expertise.

For commercial landlords managing properties across the region, from units along the Letterkenny Road to premises in Limavady or Strabane, loss of rent provisions and the interaction between building owner and tenant policies can add further complexity. Our commercial property claims service covers all of these scenarios across Donegal and Derry.

• Commercial property claims - Donegal and Derry
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• About Claims 365 - regulated loss assessors for Donegal and Derry
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Speak to Claims 365 before agreeing anything.

We handle commercial fire damage insurance claims across Donegal and Derry. We work entirely on your behalf, from initial documentation through to final settlement.

Call us on 087 655 1124 (Donegal) or 07787 794533 (Derry), or share a few details and we will arrange a call at a time that suits you.