Needing Home Repair after a Property Loss or Damage Claim?

If you find yourself in need of a home repair due to property damage, we have members of our team who specalize in this area.  Below are a few FAQ’s.  And, you may have other questions.  Please contact us today (423) 710-4226 so that we can begin the process of helping you get your home back to its pre-loss condition.

A:  No, you should use who you think is trying the hardest to get everything that was damaged covered  It’s best to use a contractor working with a “scope of work” vs. prices.  Trying to match prices ends up letting things get overlooked.

A:  In home insurance, recoverable depreciation refers to the dollar amount difference between your property’s actual cash value and its replacement value.

Insurance companies usually pay homeowners insurance claims in two parts—actual cash value, then recoverable depreciation—to dissuade fraud and to limit excess claim payouts.  After you’ve made a home insurance claim and repaired or replaced the damaged property, your insurer will pay you a check for the recoverable depreciation amount.  Recoverable depreciation only applies to homeowners insurance policies that have replacement cost value coverage.  

Repairs that are made by the contractor would cost the full value, so the depreciation would be needed to cover those costs. If there is recoverable depreciation on something that is not repaired/replaced, the insurance likely won’t pay out for that part of the claim.

Examples: If a tree falls on a deck, the insurance pays up-front 75% for its repair, and only a staircase is put back… They likely won’t pay the other 25%. If a vinyl bathroom floor takes damage by water, and the floor is replaced with a tile floor… Depreciation will be paid.

A: When a loss is being repaired by a contractor, the insurance should allow for the contractor to cover his costs of doing business. Most insurance companies will add 10% overhead & 10% profit to jobs that need 3 or more trades to do the repairs. (carpenter, plumber, electrician, painter, sheet rock installer, HVAC tech, tile installer, flooring installer, & the likes). The insurance will not add O&P without a contractor being hired to do the work. The insurance will not allow a claimant to profit from their loss.

If your insurance pays for a claim on site, hold the check & contract a contractor about the repairs. Not as much now, but some checks are written in a way that you are accepting the payout if you cash the check. (Not so much now as in the 1990’s.) 

A:  As soon as you decide you are going to be making repairs — contact us.

But, if they already have had an adjuster come to visit it still isn’t too late. The scope of work can be adjusted as needed to cover all needed repairs

Home Repairs May Be More Complex Than You Think

Sometimes homeowners may consider doing a DIY on their repair.  It’s easy to overestimate your home repair skills or the time it takes to get the job done.

The fact is: home repairs are more complex than many people realize. Many homeowners undervalue the work required to restore their home to pre-loss condition.

If you underestimate the amount of work that needs to be completed on your home, then your insurance company might provide a smaller check than you need or deserve. That’s why it’s always a good idea to get an independent assessment after significant losses or damages on your own home. 

This is where the team at A-1 Remodeling by Randall J. Smith, LLC can help you!

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