We Can Solve Your Underpaid Insurance Claims!
The Tr th is, mistakes can be made, mostly due to adjusters not looking at the total scope of the project, or they are not aware of comparable building products. Restoration Contractors know what to look for, on the surface and below the surface. This quick review will expose the common mistakes and bring up some solutions.
It's a common mistake for the insurance adjuster to mis-measure the roof, to not consider the course and scope of the restoration, and to not be aware of comparable building products. And for the home owners to accept the adjusters work as competent.
Do you find yourself thinking?
I Did Not Check to Make Sure the Calculations were Correct....
I Am Not Sure What My Roof Measurements Are...
I Do Not Know for Sure What Accessories are Needed...
Let's take a look at some examples using the software that most adjusters use. The roof measurement above is actually very common. The adjuster got the east-west ridge right, but did not see the north-south ridge, nor any of the different valley's. The square footage was measured at 29 squares, the drip edge was over-measured along with the eave starter. The valley's were not measured or included at all, and the rakes were under-measured.
Now let's take a look at the second picture. This measurement is the correct measurement. Now the reason adjusters don't get questioned on this measurement is because the total roof area measurement is basically the same and only off by a square. Using asphalt shingles for the replacement, the waste factors are not that much different. If the home owner is replacing the old shingles with an investment grade metal roof, the waste factors will change quite a bit. Depending on the material used the waste difference could be as much as 15%. This is where things really add up. It is in the parts and pieces aspect of the project. The ridge cap is off by 70 feet, the valley difference 101 feet, rake difference 49 feet, and the eave or starter in off by 35 feet.
The difference here in Dollars according to Insurance Company pricing is $3,348.00.
Now, depending on when and by whom this mistake is discovered it can mean several different things... None of them good! The Insurance Company will put up a fight, saying you accepted the settlement when you deposited the check, your contractor will scratch his head and hope that you have a solution and you will wish that you could start over. You may consider hiring a Public Adjuster to be your advocate but they charge as much as 30% of the project and that would be twice of what the difference is now. It has been my experience that most home owners will bite this bullet, so to speak.
Don’t be that home owner. Ask your contractor if they are approved to work directly with your insurance, are they savvy when it comes to supplemental invoices and will they be able to re-negotiate the right amount of money to complete your project per code with the quality of material you expect.
Let's start by getting the right measurements and product list in your hands. Just leave me your address and your best email or text below and we will deliver them directly to you inbox or text.
Understanding your Home Owner's Insurance Policy will help you get the most money after filing an insurance claim.
Actual Cash Value and Replacement Cost are two different formulas or policies that insurance companies use to calculate how much they will pay you to restore your home to pre-storm conditions or better. Insurance Companies want to pay you as little as possible, while home owners want to get as much money as possible. With Actual Cash Value or ACV Policies will pay you the original amount of the money the product was worth. Worse yet they will deduct from that amount another amount calculated to represent the wear and tear the product has undergone. Believe me, insurance companies want you to go this way because it behooves them, and they can give you less money.
Replacement Cost Value or RCV means that the insurance company will give you enough money to replace the product with the same type or a reasonable match of the product.
Think about it this way. Your replaced your old windows with top of the line, triple pane, Pella windows in the spring of 2000. For example purposes let's say that you paid $1,000 apiece for the windows. Last years storm wiped them out on two sides of your home. Let's say 8 windows are to be replaced out of the 16 windows your home has. With ACV Policies the insurance company will cut you a check for 8,000 minus the wear and tear of 20 years. So you get a check for $5,600. It is impossible to purchase 8 top of the line Pella windows with $5,600!
With a RCV type policy the insurance company pledges to pay you an amount equal to the cost of replacing the windows with a "reasonable match." (Reasonable match was amended into Montana Insurance Law in 1998 and was meant to apply only to roofing materials. Now Montana and National Courts apply this ruling to all building materials. Reasonable match mostly applies to roofing and siding materials but in many cases it can also be applied to windows.
Sometime Depreciation can be tricky. It is supposed to be the difference between the actual value of a product and the amount it would ir would cost to repair or replace the product. Let's look at it this way... Let's say the depreciated value of those 20 year old Pella window is $200 (the expected amount one could expect if they took the windows out and sold them to a re-manufacture). New Pella windows are now selling for $2,400 installed, the difference is depreciation. The pain point here is with ACV Policies the insurance company will pay you what the windows are now worth, $200, and in my opinion insurance companies are a long way from making you whole with the ACV Policy. With the RCV Policy Insurance companies pledge to pay to replace your windows with a similar window. This is sticky because the top of the line Pella in the year 2000 is drastically different than the top of the line Pella in today's market. Similar means they don't even have to be Pella. In the insurance companies eyes they could be a cheap, builders grade window. Be careful with this one.
Some RCV policies will include a recoverable depreciation clause. I think this clause is meant to again, protect the insurance company. If you have this clause in your policy it means the insurance company will only process your claim after the work is complete and you have sent them invoices or receipts.
At this point you have read and digested information about the in's and out's of insurance policies as they relate to storm restoration. Please feel free to leave your comments, Questions or Concerns below. We will do our best to address them as a priority.
Now let's look at upgrades and how to get them paid for...
It has been said that there is no such thing as making money off of an Insurance Claim. It is the Insurance Companies responsibility to make you whole again, meaning they will pay to bring you back to where you were before the catastrophic weather event took it toll. That sounds ok, but what if the products on your home have been discontinued or are not available, or say tornado blows thru town and completely demolishes your home that was built in 1963? Do Insurance companies rebuild the home using the products, materials, and building code from 1963? Yes, it is the adjuster that determines the quality of the materials used and recommends a reasonable match or a comparable as they may call it. This is where the seasoned storm restoration expert will be worth his weight in gold. They will be able to communicate the pro's and con's of comparable products and influence an adjuster that may not be so savvy with building products.
Check for an "Ordinance of Law" coverage clause in your home owner's policy. With that you will be able to use insurance money to rebuild your home to today's standards.
Are Now Ready to Upgrade?
-- Permanent Low or No Maintenance Exterior Sidings...
-- Window Systems that Withstand the Worst conditions on Earth...
-- Investment Grade Stone Coated Metal Shingles...
-- Standing Seam/Mechanical Lock Metal Roofing...
We have been securing the future of Montana and Wyoming homes using premium, low maintenance, permanent building products for 41 years now. Our Contractors and laborers are all our employees. We do not use sub contractors or storm chasers. Our reps are all extremely knowledgeable when it comes to product selection, and pricing. And our insurance experts will get you the money you want to get the job done right, Once and Done Forever.