On August 1, 2025, Wheeler, DiUlio & Barnabei continued their First Party Fridays webinar series with a deep dive into one of the most challenging claim scenarios in the industry: adjusting unique commercial losses.
In this session, Partner Tony DiUlio broke down how to approach claims involving complex or unconventional commercial properties—like hotels, condo associations, municipalities, schools, and places of worship—and the specific considerations that make these losses so difficult to adjust.
What Makes a Commercial Loss “Unique”?
Not all commercial buildings operate the same way, and that affects how their insurance claims are handled.
According to Tony, a “unique” commercial loss typically involves:
- A non-standard structure or use (e.g., churches, schools, or government buildings)
- Multiple policyholders or interested parties
- Challenges related to business income, zoning, or ADA compliance
- Complex internal systems or mixed-use purposes
These properties often require not just deep policy knowledge—but also practical strategies and creative thinking to help clients get fully compensated.
Hotels, Churches, Condos & More: Property Type Matters
Hotels present unusual business income challenges. Loss of use is about more than just room damage—it’s about total guest experience. If the pool, lobby, or breakfast area is unusable, that can affect revenue even if the rooms are fine. Tony emphasized documenting losses tied to the loss of appeal and understanding how each amenity contributes to income.
Churches are another category with nuances. Many don’t generate income in the traditional sense, but the inability to hold services or events still creates losses—sometimes emotional, sometimes financial. Insurers may not view these losses as significant unless they’re clearly documented and tied to specific policy language.
Condo associations present a challenge in scope: who owns what, and who files the claim? You must clearly define common elements vs. unit owner responsibilities, especially when policies overlap or exclude certain areas. Tony recommends reviewing governing documents, like bylaws or declarations, alongside the policy to determine proper coverage.
Municipalities and schools add another layer of complexity: taxpayer dollars, budget cycles, and public accountability. Getting these claims resolved quickly requires clarity, accuracy, and a well-organized claim file that answers every possible question before it’s asked.
Approaching the Adjustment: Strategy Over Speed
When adjusting these types of losses, Tony stressed the importance of slowing down and thinking strategically. Every policy is different, and the stakes are higher when public safety, residents, or students are involved.
Some tips he shared:
- Ask who’s covered and who owns what right from the start
- Pull governing docs and lease agreements early to resolve scope conflicts
- Document partial losses carefully (e.g., a school with one wing damaged still faces disruption)
- Engage specialists when needed—such as engineers, accountants, or ADA consultants
The goal is not to rush to an estimate, but to build a file that tells a complete story of the loss.
Common Pitfalls to Avoid
Tony also shared several traps that can delay or devalue claims involving unique commercial properties:
- Failing to understand how the building is used in day-to-day operations
- Not adjusting business income or extra expense claims to match real-world consequences
- Overlooking shared ownership or mixed-use complexities
- Not accounting for code upgrades, accessibility, or functional replacements
- Using a one-size-fits-all approach to documentation
He emphasized that insurance adjusters may not have experience with these building types—so it’s on you to present the loss in a clear, logical, and well-supported way.
Final Thoughts
Adjusting a unique commercial loss requires more than just policy knowledge—it demands empathy, problem-solving, and a willingness to dig deeper. Whether you’re helping a municipality reopen a public building or guiding a business owner through a multi-million dollar hotel loss, your work makes a real difference.
If you’re working through a complicated commercial property claim, the team at Wheeler, DiUlio & Barnabei is here to help. Our attorneys know how to navigate unique losses—and how to help you recover what you’re owed. Speak with a member of our team today to get started.
