After a Commercial Property Loss in Hawaiʻi: A 30-Day Checklist for Owners and Property Managers

The first month after a commercial loss sets up everything that follows. Owners are juggling tenants, lenders and their own business. Property managers are juggling all of that for someone else. This checklist keeps the essentials in order. It is written for widely used commercial policies; your policy’s wording controls.

Day 1: Safety and protection

1. 01
   Make it safeGet people out of harm’s way. Shut off damaged utilities if it is safe to do so, and call the fire department or utility when needed.
2. 02
   Stop further damageTarp roofs, board openings, extract water and start drying. Your policy expects reasonable steps to protect the property.
3. 03
   Document before cleanupTake wide and close photos and walk-through video of every affected area, inside and out, before anything is moved or removed.
4. 04
   Keep every receiptEmergency services, materials, equipment rental and staff overtime. Open a separate expense code for the loss today.

Days 1 to 3: Notify and record

• Report the claim to the insurer and your agent in writing. Write down the claim number and the adjuster’s name, company and contact details.
• Notify your lender if the property is mortgaged. Insurance checks often name the lender too.
• Tell tenants what happened and what to expect. Remind them to contact their own insurer about their property, improvements and business income.
• Keep damaged materials and samples, such as roofing, flooring and drywall, until the insurer has had a chance to inspect them.
• Start a claim log: every call, email, visit and decision, with dates and names.

Week 1: Get the policy and build the team

• Request the complete policy, including the declarations and every endorsement. Check causes of loss, valuation, coinsurance, deductibles, and any business income, ordinance or law, equipment breakdown and flood coverage.
• Identify every policy that may respond: building, the tenant’s policies, flood, hurricane and equipment breakdown.
• Bring in the people who will define the scope: a contractor, and where needed an engineer, building envelope consultant or industrial hygienist.
• Loop in your accountant early if there is any business income or rent loss.

If any of those coverages are unfamiliar, start with What Your Commercial Policy Covers.

Weeks 2 to 4: Inspection and scope

• Be at the insurer’s inspection with your contractor or consultant. Walk the adjuster through every area, including the roof, attic spaces and mechanical rooms.
• Answer questions with facts you know. If you are not sure of a date or cause, say you will confirm it in writing.
• Ask for copies of the insurer’s estimate, photos and any engineer report.
• If you receive a reservation of rights letter, read it closely and respond in writing. It is not a denial, but it signals which policy terms the insurer is looking at.
• Build your own scope, priced for Hawaiʻi, including shipping, permits, code upgrades and general contractor overhead and profit where a general contractor is needed.

Deadlines to put on the calendar now

These are common defaults. Your policy, endorsements and any Hawaiʻi amendatory forms may set different deadlines, so check the wording and send important notices in writing.

For property managers: your role and the owner’s

• Know your authority. Check the management agreement for emergency spending limits and who can sign claim documents.
• Get approvals in writing for contracts, the claim strategy and any outside help.
• Separate the claims. Building damage, tenant improvements, tenant contents and each party’s business income often sit on different policies. Leases usually say who insures what.
• Be the single point of contact for the adjuster, vendors and tenants, so the story stays consistent.
• Report up. A short weekly update to the owner or board, with claim log highlights, prevents surprises.

Mistakes we see on commercial claims

• Cleaning up or demolishing before the damage is documented
• Guessing about dates, causes or prior repairs on a recorded call
• Accepting the first engineer report without reading it closely
• Mixing storm expenses into normal operating costs
• Missing a 180-day notice because the clock started on the date of loss
• Letting several people talk to the adjuster about scope without coordination

If the business closed or lost rent, see Business Income and Interruption Claims. If you manage a condominium, see AOAO Master Policy Claims.

Common Questions