What is a Property Damage Release Form?
Property damage release form is a document that is typically used to settle or release claims arising out of a property damage claim. A properly worded property damage release generally provides that the party releasing the claim is relinquishing his claims to seek additional compensation for the property damage in question. The property damage release should also provide that the party releasing the claim is releasing the other party from any punitive or consequential damages related to the property damage.
A properly worded property damage release protects both parties and provides the parties with peace of mind that there will be no future litigation relating to the property damage. Property damage releases are often utilized when settling a property damage claim with an insurance company. Some common situations in which a property damage release form might be required are auto accidents , collisions with property and personal injury claims.
Before signing a property damage release form, it is important to closely review and understand its terms. In the event you have a question about the property damage release, it is important to reach out to an attorney prior to signing the release.
Essential Elements of a Property Damage Release
A well-drafted property damage release form is essential for any successful resolution of a claim for damages to property. Every situation is different, but most will involve the following elements:
Parties Involved
A description of the parties involved in the underlying matter that resulted in the damage to the property. This should always include the landlord or property manager as one party and the party causing the property damage as the other party.
Description of Damages
A simple sentence or two explaining how the property was damaged should suffice. A picture may also be included with the release form.
Description of Compensation Received
A short explanation of how compensation was received should also be included. If the release form is being used to finalize the release of a claim for property damage that was issued by an insurance company, the amount of the check could be listed. Otherwise, a simple "secured a claim for damage" statement may be all that is necessary.
Identification of All Tenants Signing the Release
If the rental property is owned by several tenants rather than just one, all tenants listed on the lease for the premises should also be listed as recipients of the release form.
How to Complete a Property Damage Release
Begin with your information as the claimant, the name of the insurance company who issued the policy, the name of the insured, the date of the loss (keep in mind your claim may be barred if you forget this), the policy number, the claim number, the date of payment or, if litigation is involved, the date of the judgment. Properly completing the witness information and the notary block is made exceptionally easy if both of them are directly adjacent to one another, so make sure to have a strong opening statement to the insurance lawyer. The release should then go on to state, in clear and unambiguous terms that the claimant is discharging the insurance company from any further liability with regards to the specified claim.
Common Pitfalls to Avoid
There are a few common errors I see people making when it comes to executing a property damage release form and I thought I’d pass on some simple tips to avoid those pitfalls.
First, don’t sign the release form if you didn’t intend to settle your claim 100%! There is absolutely no reason to execute a release form if you believe there may be further damages discovered in the future. As you know, if you sign the release form without retaining certain rights, like the right to recover from other insurance, you are waiving those rights now and forever.
Secondly, don’t sign the release form if it doesn’t explicitly state that you are reserving your rights in relation to the potential for injury or illness. As mentioned above, signing the release form without retaining the right to fully present your claim for bodily injury is a big mistake. However, even this right will be waived and can be very difficult to reverse if the release form does not contain language explicitly reserving the right to do so. It is imperative that the proper reservation language be contained in all settlement documents.
Lastly, always read the release form before signing it; don’t just pass it on to your public adjuster or attorney. You should always read the entire document before signing it so you know exactly what you are signing and to make sure that the release form contains all the reservations you intended to make.
Legal Considerations When Signing a Release Form
At a more nuanced level, the signing of a release form may also bind the parties in subsequent litigation on the same claim. Specifically, when a release agreement is signed, it will usually contain language releasing any claims related to the incident. For example, a property owner who signs a release relating to mold remediation would be precluded from bringing a subsequent action against the insurer involving the same loss. The party’s consent to a release is a bar to later claims.
Ultimately, the majority of the legal implications surrounding the signing of a release form by one party in an insurance matter are that the adverse party may be barred from a claim that may come into dispute down the line. This is particularly so between a carrier and its insured, where the fact of execution and the terms of the release form are relevant in a subsequent breach of contract case .
In addition, to be effective, a party must execute the Release form voluntarily. This means the release is only valid if the party freely, voluntarily and without compulsion gives up any right of action. Insurers often get hung up on this legal nuance, where they may want to rely on the absence of fraud or undue influences and duress, but keeping in mind the general rule that the release should be voluntary is key.
One special instance worth noting is the case of a party signing a release while under the influence of drugs or alcohol. New Jersey courts have held that a party who is so intoxicated that he/she cannot understand the import of his or her actions will be rendered incapable of ratifying the contract. Courts will examine the circumstances surrounding the intoxication of the signing party to determine if that individual knew what they were doing at the time of the signing of the release.
When to Use a Property Damage Release Example
Examples of Property Damage Release Forms: When You May Need Them
A picture or a video can be worth a thousand words. Similarly, a form, especially a form that is used in the legal context, can be more easily understood when you have an example of the document. This applies to property damage release forms. Whether you are dealing with a car accident, a defect in property, mold, asbestos, a fire, or other categories of property damage, having an example of a property damage release form to guide you during preparation or review may be helpful. For instance, if you happen to be faced with a specific question about a potentially relevant property damage release form, the question may be answered by reviewing a relevant example as to its terms or how particular circumstances might affect your own case as compared to the example. In general, the more knowledge you have about a property damage release form, the more interesting questions you might develop about your own situation. Again, the purpose of a property damage release form is to avoid future litigation or disagreements arising out of a particular situation. The subject matter escapes litigiousness prior to the signing of a property damage release form, and it is a hopeful suggestion that the subject matter will remain non-litigious after the signing of the property damage release form unless an exception to the release is set forth in the form.
Tailoring the Property Damage Release Example for Your Needs
When it comes to property damage releases, there is no one-size-fits-all form that will work for every situation. Depending on the jurisdiction and the specific circumstances of your claim, you may need to modify a generic form to fit your needs. Here are some tips for tailoring a property damage release form: Consider the statutory requirements in your state. Every state has different requirements for what should be included in a release. For instance, some states require that a release be signed in the presence of a notary public, while others do not. Make sure that your form complies with the statutory requirements in your state. Be specific about the claims being released. It is important to be as specific as possible when defining the claims being released. The more specific you are, the more likely it is that the release will be upheld by a court. Be sure to clearly identify the parties involved in the claim, the amount of damages being claimed, and any other relevant details. Include an acknowledgment of full payment. It is not uncommon for insurance companies to try to settle a claim for less than it is worth. If you believe that your claim has been fully paid, it is important to include an acknowledgment of full payment in the release. This will help to protect you in the event of a lawsuit. Make sure that the form is properly signed and dated. If the release is not properly signed and dated, it may not be legally binding. Be sure to follow the instructions for signing the form carefully. Consider the use of a notary public. In some cases, it may be a good idea to have a release signed and notarized. A notary public can help to ensure that the release is being signed voluntarily and that all of the required information is included in the document. Obtaining a release of your property damage claim offers protection from any future litigation regarding the same issue. Working with an experienced lawyer can alleviate the stress associated with drafting a release.
Where to Locate Reliable Examples of Property Damage Release Forms
Credible and Legally Sound Online Resources
The most effective property damage release forms may be found through governmental, academic, church, or other non-commercial entities. The reason for this is that the form has likely been vetted by an expert that serves solely in an advisory capacity. In addition, any non-tangible property for the benefit of another cannot be sold , transferred, or assigned during a flood or other emergency pursuant to United States Code Title 42 Sections 5201 et seq.
Some recommended sources include:
• Agri-Life University: An Outreach of the Texas A&M University System
• The Federal Emergency Management Agency (FEMA)
• Non-Profit and Charitable Organizations
• Your Local Law or Medical School
