In the aftermath of the unprecedented flooding experienced by Colorado this fall, which exacted a hefty toll upon our local community (residential and commercial real estate owners alike), many property owners are re-evaluating their levels of preparedness and looking for ways in which they can be better equipped to deal with future disasters.

1. Check your insurance coverage. Comprehensive insurance coverage is essential in both commercial and residential real estate. It is important to keep in mind that even comprehensive insurance often does not cover flooding and other natural disasters, so if you’re at risk for these things, you may need to obtain additional insurance. While some parts of the coverage may be very rarely used, when they are necessary, you’ll be glad for the assistance as claims resulting from natural disasters can often run to hundreds of thousands, if not millions, of dollars in damages.
2. Assemble a support team. This can be your most valuable asset as you assess the damage and formulate a plan for recovery. Your team should include yourself, legal counsel, an insurance agent, and management staff from your property for starters. It can also be a good idea to establish relationships with a general contractor, electricians, plumbers, and other laborers. This team can help you develop emergency plans before disaster strikes and to maintain business as usual in the aftermath.
3. Forge relationships with trusted restoration companies. Restoration firms can bring experience and crucial services to salvage your assets and lessen the chances of further damage. It is best to research reputable companies and establish contact with them before disaster strikes when the pressure is off and demand is lower. Choose at least two companies so that you will be able to compare proposals for both price and scope of work.
4. Look after your tenants. A healthy tenant-landlord relationship is a good business practice during normal times, but it becomes even more essential in times of trouble. If your tenants trust you (and your management staff) to listen to them and respond to issues quickly, they will be more patient, understanding, and supportive while you’re recovering from the disaster and fixing up the property.

The key to weathering almost any storm is to be prepared. If you plan for the unexpected, then you’ll have smoother sailing when (natural) disaster strikes.

This blog was written by Bob Amter, President of Montegra Capital Resources, LTD., a Colorado hard money lender.  [google_authorship] has been in the private capital lending business for 41 consecutive years.