There are some insurance policies that include cover for claim preparation costs, often policyholders who are fortunate enough to have this cover, are unaware that this benefit exists or how it can be used.

If your business, commercial property or investment property has suffered damage following a fire, flood, escape of water or another insured event, claim preparation cost cover may help contribute towards the professional costs of preparing and presenting your insurance claim. While this cover is most commonly associated with commercial insurance policies, some specialist property and landlord policies may also include similar benefits. Standard residential home insurance policies do not usually provide cover for claim preparation costs.

What are claim preparation costs?

Claim preparation cost cover is an additional insurance benefit designed to help policyholders cover, or contribute towards, the reasonable professional costs involved in preparing, presenting and supporting an insurance claim following an insured loss.

A major property insurance claim can involve a significant amount of work. Gathering evidence, documenting damage, preparing schedules of loss, obtaining repair estimates, assessing financial impact, such as business interruption and increased costs of working for commercial policyholders, and negotiating with insurers, all require time, expertise and attention to detail. Claim preparation cost cover is designed to help policyholders access professional support during this process.

What do claim preparation costs usually cover?

Although every insurance policy is different, claim preparation costs typically contribute towards professional services such as:

  • Preparing and presenting your insurance claim
  • Compiling detailed schedules of damaged property
  • Gathering supporting evidence and documentation
  • Analysing and preparing business interruption data, where applicable
  • Liaising with insurers, Loss Adjusters, Forensic Scientists and other professionals
  • Negotiating the settlement of your claim
  • Managing the claims process from initial assessment through to settlement

The level of cover available varies between insurers and policies. Some policies provide cover based on a percentage of the overall claim value, subject to a maximum limit, while others specify a fixed amount. Always check your policy wording carefully, seek advice from your Insurance Broker, or a professional Loss Assessor like Morgan Clark, if you are unsure what cover applies. An independent industry expert will be able to advise you on the level of cover available and how best to utilise it.

Does every insurance policy include claim preparation costs?

Unfortunately not. While claim preparation cost cover is becoming more common within certain insurance policies, particularly for businesses, commercial property owners and landlords, it is not included in every policy.

Standard residential home insurance policies do not usually include this type of cover, although some specialist or high-value home insurance policies may provide similar benefits.

Your policy schedule and wording will confirm:

  • Whether claim preparation costs are included
  • The amount of cover available
  • Any limits, exclusions or conditions that may apply

If you are unsure, your Insurance Broker or an independent Loss Assessor, like Morgan Clark, will be able to confirm whether this benefit forms part of your policy.r should be able to confirm whether this benefit forms part of your policy.

Can you choose your own Loss Assessor?

Yes. You are free to appoint your own independent Loss Assessor to represent your interests. You do not have to use the individual or firm recommended by your insurer. Even if you choose to appoint your insurer’s recommended firm, it is wise to consult an independent Loss Assessor to ensure you are aware of everything you are entitled to.

Insurance policies that include claim preparation cost cover should contribute towards the cost of appointing your own professional, independent Loss Assessor. The amount payable and any conditions will depend on the wording of your policy. An independent Loss Assessor works solely for you, helping to prepare, present and negotiate your insurance claim. Unlike the insurer’s Loss Adjuster, whose role is to investigate the claim on behalf of the insurer, your Loss Assessor represents your interests throughout the claims process.

Why appoint an independent Loss Assessor?

Following a major property loss or business interruption, policyholders are often dealing with disruption, repairs, temporary arrangements and the practical challenges of restoring their property and/or preparing their business interruption claim.

For business owners in particular, this may also include keeping operations running, supporting employees and managing the wider impact on the business.

An independent Loss Assessor works for you, the policyholder, helping to prepare, present and negotiate your insurance claim.

A Loss Assessor can help by:

  • Assessing the extent of the damage
  • Preparing detailed schedules of loss
  • Coordinating specialist reports where required
  • Managing communication with insurers and their representatives
  • Negotiating a fair settlement
  • Reducing the administrative burden during an already challenging time

Seeking professional support allows policyholders to focus on recovery while their claim is being professionally prepared and managedofessional support allows policyholders to focus on recovery while their claim is being properly prepared and managed.

Does claim preparation cost cover apply to homeowners?

Not commonly. Claim preparation cost cover is primarily found within commercial business, commercial property owner and some specialist property insurance policies. Standard residential home insurance policies do not usually cover professional claim preparation fees. However, homeowners can still benefit from professional support following a significant property loss. Morgan Clark, for example, has assisted thousands of residential clients with complex insurance claims. Independent Loss Assessor fees would be agreed with the policyholder at the outset, rather than being funded through claim preparation cost cover.

How Morgan Clark can help

Morgan Clark has over 25 years’ experience helping business owners, homeowners and landlords prepare and manage complex insurance claims.

Our experienced team supports clients throughout the claims process, from the initial assessment through to settlement, helping ensure claims are properly evidenced, professionally presented and negotiated effectively. If your insurance policy includes claim preparation cost cover, our team can explain how this benefit may apply and whether our services could be funded, in whole or in part, under your policy. If you are unsure whether your policy includes this benefit, we would be happy to discuss your circumstances and explain the options available with no obligation.

Popular Questions

Claim preparation costs are an insurance policy benefit that may contribute towards the professional costs of preparing and presenting an insurance claim following an insured loss.

No. They are commonly found within commercial property policies, and may also appear in some landlord and specialist property policies. Standard residential home insurance policies do not usually include this cover.

Yes. You can appoint any independent Loss Assessor you choose to represent your interests. If your policy includes claim preparation cost cover, some or all of their fees may be covered, subject to the terms and limits of your policy

That depends on your policy. Some policies provide cover up to a specified limit or percentage of the claim value, while others may only contribute towards the overall cost.

Check your policy schedule and wording or speak with your insurance broker. If you already have a claim underway, Morgan Clark can also help you understand whether this benefit may apply .

For more FAQs visit: Insurance claims FAQs – Morgan Clark