Claim Preparation Costs
All major strata policies contain cover for Claim Preparation Costs. The insuring clause will be along the lines of the following:
“We will pay the reasonable costs you necessarily incur for the preparation of a claim under this policy.”
What does this mean?
At first glance, you may think that this cover is limited to costs associated with ‘preparing’ your claim - perhaps filling out a claim form. However, it in fact encompasses the professional services provided by a Claims Preparer such as Strata Claims Services.
A Claims Preparer provides services such as:
Taking instruction from the insured
Investigating the facts surrounding an event
Reviewing policy coverage
Providing expert advice on policy response
Making submissions to the insurer
Responding to insurer requests for information or policy defences raised
Negotiating the claim until finalised including dispute resolution
Essentially this clause provides you cover for costs you incur associated with investigating, analysing, submitting and negotiating settlement of your claim.
In Practice
The process we use to ensure the highest likelihood of our fees being covered by your insurer is as follows:
We advise your insurer of our appointment and obtain their consent to cover our fees.
Our services are provided and we invoice you.
We make a claim on your behalf to ensure you are reimbursed for our fees.
Our goal is to ensure that you receive the maximum policy benefit and are never out of pocket.