Fire loss on commercial building

2 Replies

I recent had a fire in old out of code commercial building (food establishment) the insurance adjuster estimates for the Replacement cost value on the building is about 40% less than what it will actually cost us to repair the building to code as per our architects plans. 

My question is can I negotiate the cost of total repairs? or am I out of luck and stuck paying the remain cost to get us back open for business? 

The total cost of repairs is well below our insurance building coverage limit. 

I would appreciate any help that can be offered.


Have you tried an insurance adjustment company. You hire them to re-evaluate costs where they take a percentage in the end. I'm a builder and work on quite a bit of insurance claims. What area are you in? I know of a good company that can help you with this claim. For our jobs, they pay out in 3rds based on the completion of the project. They work against insurance companies all the time so I think this would be a good route to go. Let me know and I can put you in touch with someone. J

Absolutely hire an adjustor. They are worth their weight in gold, and will only charge at the end. We had a fire in a 16 unit, insurance company wanted to settle for pennies due to the condition of the property prior to the fire (it was in fact a dump), but the adjustor was able to pinpoint and prove that more damage had been done to the building by the (gung-ho / bored) fire department than the fire itself. Ended up getting settlements from both the insurance company AND the FD that covered 100%!

When you are meeting the adjustors, ask about their background. Hire the one that worked for an insurance company for 20+ years and you will be laughing all the way to the bank.

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