Claim
A newly constructed property experienced a burst in a sprinkler elbow pipe, which had frozen. The sprinkler system had recently undergone testing, but after the test, water became trapped in a sprinkler pipe that had been installed incorrectly. This pipe was located on the ceiling of the fourth floor and eventually burst, causing water to cascade through multiple floors. The water damage affected a total of 14 units, including all units located below the affected area and even extended to the neighboring building. The extent of the water damage was substantial, prompting our hiring on the same day as the incident.
Hurdles Faced
The property had recently completed construction and was in the process of welcoming new tenants. However, a significant challenge arose when all 14 renters, who had just signed their leases, were forced to vacate during the mitigation and restoration period. This unexpected situation meant that the property owners, who had just completed the construction phase, now found themselves having to reconstruct a portion of the building. Additionally, the owners were grappling with a substantial loss in business due to the interruption caused by this incident. Moreover, they lacked expertise in handling insurance claims. Consequently, we provided assistance in managing tenant communications and expectations, as well as facilitating relationships with vendors
Strategy Implemented
Without delay, we promptly visited the property to evaluate the extent of the damages and strategize on mitigation measures to prevent any additional harm. We maintained close collaboration with the property owners to effectively handle the displaced tenants and supervise the essential emergency services required following the incident.
Once these immediate needs were addressed, our team of seasoned building consultants diligently documented the damages and effectively negotiated a comprehensive settlement with the insurance company. This ensured that the owners received the appropriate compensation necessary to restore the property to its pre-loss condition.
Successful Outcome
The process of finalizing the $1.4 million claim and securing the essential funds for both rebuilding and compensating for business interruption, which included loss of rental income, spanned a duration of six months.
