Insurance Claims and Storm Damage
Hurricane – Tropical Storm Harvey Update
We will honor all Insurance claims with an Insurance Adjuster’s report and a signed Contingency Contract from Houston Remodeling listing us as your Contractor.
Where do I begin with the Insurance Claims?
Houston Remodeling offers services for storm damage and general contracting. Since dealing with insurance companies is quite hectic, we provide you with a service writer who helps you understand your claim process. Your service writer also coordinates meetings with the insurance adjusters and represents you as your contractor. This ensures that all damaged items are included in the damage report.
Starting the insurance claim process.
Immediately you call your insurance company to report on damages. The insurance carrier will inquire on the date and type of damage. You will be issued with a claim number that will be used throughout the claim’s process.
A meeting with the Insurance adjuster.
The insurance company adjuster will call you to schedule a meeting. Inform your adjuster to contact us, your service writer (Houston Remodeling) and we will represent you as both your advocate and general contractor. Issues on mechanics of the repair, local building codes, and materials will be our job; you need not worry.
Within ten days from the adjusters visit, you will receive a check from your insurance company. This check will represents the actual cost to repair or replace the damaged property. This does not include your deductible and depreciation. When the project is complete, we will bill your insurance company for the depreciation, also known as hold-back.
Exactly what does the Insurance company pay to replace?
Your insurance will pay for replacement cost only. If you desire upgrades, you are expected to pay the difference plus any overhead and margins to the contractor.
What is a deductible and who pays for it?
A deductible is an amount which a policyholder agrees to pay, per claim or per incident, toward the total amount of an insured loss. For example, if you incur a loss and your insurance company determines that repairs for the damages are going to cost, $1000.00 and your policy has a $250.00 deductible, your insurance company will pay $750.00. It will be your responsibility to pay the remaining $250.00 balance to the contractor.
What does ACV and Depreciation mean?
Actual Cash Value (ACV) is the cost of replacing or restoring property at prices prevailing at the time and place of the loss, less depreciation.
For example, if an item is worth $100 new, is expected to last for 5 years and you have owned the item for 2 1/2 years, then the ACV of that item could be established as 50% of its original value. The amount subtracted from the replacement cost value based upon the percentage of the ACV is typically referred to as Depreciation.
Depreciation is a decrease in the value of property over a period of time due to wear and tear or obsolescence. Depreciation is used to determine the Actual Cash Value of property at the time of the loss. Under most cases the ACV is refunded after the job is completed and an invoice presented to the insurance company from your contractor. Depreciation is how the insurance companies project themselves from Homeowners who do not complete the repairs or replace the items but instead opt for the cash.
When the project is complete, we will invoice the Insurance company for the remaining balance or depreciation.
I don’t think the Insurance company paid out enough to have my home repaired?
Insurance companies expect supplements from the contractor. If is very easy for an Insurance Adjuster to miss several items while doing their estimate. Every Insurance company has a Supplement Team to deal with additional cost. Your only out of pocket expense is your deductible.
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