In the complex landscape of property management and insurance claims, the role of a building consultant is often underestimated. However, hiring a building consultant can be a game-changer, offering financial and time-saving benefits.
In this blog, we'll delve into the average costs a carrier might incur in a litigated file and the delays that can occur in the claim process. We'll also discuss how a building consultant can mitigate these issues.
The High Cost of Litigated Files for Carriers
The Financial Toll
Litigation is an expensive affair, and the costs can skyrocket when it comes to property claims. A litigated file can cost a carrier anywhere from $50,000 to $100,000. These include legal fees, court costs, and the resources spent on extensive investigations and negotiations.
The Hidden Costs
Beyond the obvious financial burden, there are hidden costs, such as the time and effort spent by the carrier's internal team. This diverts resources from other essential tasks, affecting the overall efficiency and productivity of the organization.
The Delay in Claims and Its Domino Effect
Time is Money
A litigated claim doesn't just cost money but also costs time. A litigated claim can be delayed by 6 to 12 months. This delay can have a domino effect, causing subsequent delays in repair work, further damage to the property, and increased costs.
The Emotional Toll
The delay also takes an emotional toll on the policyholders waiting for their claims to be settled. This can lead to a strained relationship between the carrier and the policyholder, affecting customer satisfaction and retention.
The Role of a Building Consultant: A Cost-Effective Solution
Expertise and Efficiency
A building consultant brings a wealth of expertise to the table. They can conduct thorough evaluations, provide unbiased reports, and offer accurate estimates for repair costs. Their involvement can streamline the claims process, reducing the likelihood of litigation.
Timely Resolutions
Building consultants are adept at identifying issues early, allowing for timely resolutions. Their involvement can significantly reduce the claim's lifecycle, ensuring quicker settlements and happier policyholders.
Financial Savings
Building consultants can save carriers a substantial amount of money by avoiding litigation and expediting the claims process. The long-term financial benefits often outweigh the initial investment in hiring a consultant.
An Investment Worth Making
Hiring a building consultant is not an expense—it's an investment—an investment in expertise, efficiency, and, most importantly, in the satisfaction of your policyholders. At Legacy Building Consultants, we are committed to providing accurate, transparent, and efficient assessments tailored to your needs.
"Building consultants are deployed at two major times. They are deployed when the insurance company has begun its initial investigation of the large or complex loss and realizes that a higher quality investigation and an accurate cost assessment are needed. The second reason for engaging a building consultant is in the early stages of a dispute between the insurer and insured on a complex or large loss. Insurance companies understand the value that can be provided to settle the claim potentially is a pre-dispute resolution." - Tim Simmons
Don't navigate the complexities alone. Let Legacy Building Consultants be your trusted partner in building solutions.
Contact us today to schedule your consultation and take the first step toward a more efficient and cost-effective claims process.
