Commercial Builder's Risk Claim: $122k offer to $424k Settlement

On March 22, 2024, disaster struck. A fire erupted in the kitchen of a nearly completed row home—part of a larger commercial development our client had meticulously been building. With a buyer already under contract and the finish line within sight, the blaze threatened to unravel months of hard work and jeopardize the sale, casting a shadow of uncertainty and pressure over the entire project.

Aftermath of a fire in the kitchen, revealing extensive damage and destruction that halted the nearly completed project.

The claim presented several challenges, particularly related to subrogation. Multiple contractors, who might have been responsible for the fire, had to be gathered for a comprehensive inspection, leading to a four-month delay. This added significant pressure on the project. During this period, EB Adjusting stepped in to negotiate with the insurance company. We successfully secured approval to mitigate damage on the second and third floors, a crucial step in preventing further deterioration and ensuring the project could resume once the investigation concluded. Additionally, we secured an advance payment, allowing our client to order necessary materials and prepare their crew for the rebuild, helping minimize the impact of the delays.

Second-floor bedroom showing heavy smoke damage and broken drywall.

Initially, the insurance company offered just $122,000, covering the first floor and basement while claiming the rest of the property could simply be cleaned. Recognizing the true extent of the damage, we requested further inspections, including testing the drywall and other fixtures for smoke damage. Through persistent documentation and communication, we were able to professionally demonstrate the full scope of the fire's impact on the entirety of the property.

Kitchen post-mitigation, waiting to be sealed and have drywall put up 

As a result, EB Adjusting successfully negotiated an increased settlement of $424,000, covering all floors of the property as well as addressing the total extent of the damage.

The kitchen with new drywall installed, awaiting paint and finishing touches.

By July 2024, the settlement was finalized, allowing the rebuild to proceed and the property sale to stay on track. This successful outcome highlights EB Adjusting's expertise in managing complex commercial claims, extending far and wide beyond  the residential construction space.