INSURANCE company GK Insurance is reminding Jamaicans to prepare for their insurance claims. K. Michelle Reid, claims and legal manager, is urging people to report damage promptly after the hurricane, warning that delays in reporting can lead to delays in producing reports for the insurance company.

“I don’t want to tell you that insurance claims for property damage from hurricanes can take, say, a month or longer — the time frame can vary depending on the claim — but what I will say is that the insurer plays a huge part, a strong role, in the presentation of claims,” she told the Jamaica Observer.

Both Reid and Chaluk Richards, general manager of GK Insurance, warned against delaying the process by waiting to gather estimates and all documentation before notifying the insurance company, which can take a week or two and slow down the process. Instead, they advise policyholders to notify the insurance company as soon as they suspect a loss, providing any available photos or videos. The insurance company will then appoint an adjuster to start the process while the policyholder gathers the remaining documents.

“To speed up the claims process and the investigation process it would be useful to have your information ready to show the state of your property and motor vehicle before the incident occurred. This will help support your claim,” said Reid.

However, Richards reminds insurers that photographed evidence, while helpful, does not replace the need for damage assessment as it merely proves the pre-loss condition of the property. Reid advises homeowners to get evaluations to ensure they are insured for the replacement value of their property. Insurers must also maintain their property, including the roof, to prevent further damage. Policies cover damage caused by loss, not neglect. Homeowners should address pre-existing issues like leaks before a hurricane strikes.

The insurance company encourages policyholders to take proactive steps to mitigate risks and be aware of their property’s current state. Reid also reminds consumers of the ‘catastrophe deductible’, which is typically five per cent of the insured amount for motor owners, depending on coverage and insurance company, and two per cent for property owners.

“The deductible is the portion of the claim that the insured individual is responsible for paying themselves, and it’s not covered by the insurance company,” stated Richards in explaining the concept of a deductible. He illustrated this point with a practical example: “Let’s say a building worth $30 million is damaged in a hurricane, resulting in $100,000 in damages. If the deductible is two per cent of the building’s value, the insured would be responsible for paying the first $600,000 themselves. Only if the damages exceed that amount can they submit a claim to the insurance company.”

In other words, if the damages are within the deductible range the insured would have to bear the costs themselves and wouldn’t be able to file a claim with the insurance company. Richards stressed that understanding deductibles is essential for policyholders so they can avoid unexpected financial burdens. He also used the opportunity to highlight a startling trend in Jamaica’s insurance market. He revealed that a staggering 90 per cent of home insurance policies are held by individuals with mortgages, emphasising that insurance is a requisite for securing a mortgage. While Jamaicans are more likely to opt for comprehensive car insurance even without a mortgage, the same cannot be said for home insurance. In fact, many homeowners stop paying insurance premiums once they’ve paid off their mortgage.

Richards urged homeowners to crunch the numbers, pointing out that insurance costs typically amount to less than one per cent of a house’s value. He highlights that it would take over 100 years to save the equivalent of a house’s value in insurance premiums, underscoring the importance of continued coverage.

“A lot of people will say, ‘Well, I don’t own the property; I just rent it.’ But you can ensure the content. If you’re renting, we encourage you to insure the content,” he advised renters.

The team at GKGI has notified Business Observer that they have already begun reviewing and processing claims, prioritising them based on urgency.

“We’re very conscious of the fact that we are still in the beginning of the hurricane season, and the longer it takes for people to recover, the more exposure they have for future damage,” explained Richards. “We also try to mitigate that as well., so it is our overall focus to get the customers on their feet as quickly as possible. And so once we get the information, we’ll be closing those matters through and pushing them through with our independent adjusters.”

K Michelle Reid, claims and legal manager, GK Insurance.

Everton Evanks walks through his living room on Thursday, July 4, after the roof of the home was blown off by Hurricane Beryl’s winds in St Elizabeth, Jamaica. Joe Raedle/Getty Images

A man clears water from a damaged restaurant in Hastings, Barbados, on Monday.Randy Brooks/AFP/Getty Images

GK Insurance Company Managing Director Chaluk Richards (Photo: Adrian Creary)