Nobody likes fine print. It’s tedious to read and can cause epic headaches. However, the kind of agony that goes along with bad news about what is actually covered in your policy can be far worse. Don’t find out too late about your coverage. Here are 5 thing you must know about your homeowner’s policy.
- Replacement Cost Value – Residential Repair’s Insurance Loss contracts are based on Replacement Cost Value. This is the value given on a claim to replace the damage. It may have recoverable depreciation held back, which is sent as a second check once the work is completed. With this kind of policy – the owner is usually liable for the deductible amount on the policy.
- Actual Cost Value – Actual Cost Value only pays for the value of the item to be repaired or replaced at the time of damage. In other words, it removes the depreciation amount and only pays for the remainder. The depreciation comes out of your pocket in order to complete the repairs. With this policy – the owner is usually liable for the deductible and the depreciation amounts.
- Example: If you have roof damage that will cost $8000 to repair, a Replacement Cost Value policy will likely pay that full amount minus the deductible. However, with an Actual Cost Policy, if your roof was only worth $5000 when the damage occurred, then you will be liable for the deductible as well as the remaining $3000 depreciation amount.
- Supplemental Claims – Any damage discovered after the initial adjuster visit will be sent to the adjuster as a supplemental addition. The adjuster may want picture or video documentation, or they may want to revisit the property. Residential Repair will work to help the adjuster get the documentation they need to process the claim.
- Deductible – Understand your policy deductibles. You may have one deductible for everything except wind and hail or it may be the same no matter what the loss. We see a lot of $1000.00 deductibles or a combination of this and 2% wind and hail. If you have 1% or 2% deductible, this is the percentage you will be expected to pay multiplied by the amount your home is insured for. It is NOT 1% or 2% percent of the replacement or repair cost. This can be a huge shock to owners at the time of a loss.
- Example: If your house is insured for $250,000.00, you have a 2% wind and hail deductible, and the damage is $16,000, you will pay a $5,000 deductible ($250,000 x 2%), not $320 ($16,000 x 2%). A percentage deductible always means you are paying the deductible for the full amount of your home’s insured value, not the percentage of the damage unless otherwise specified.
- Insurance Process – Once you have opened a claim and the adjuster has visited the property, you will receive your first check and an itemized document with each line listing a repair or replacement. This document lists what the adjuster is covering. It details the quantity, the quality of material, and whether it is to be detached and re-set/re-used or if the item is to be replaced with new materials. Once this document arrives, you will provide us with a copy and we will walk through the damage to verify the required work. We can create this same document as we have the same program, but we will not know the scope approved by the adjuster. We want the owner, contractor, and insurance company to be on the same page so that the process goes smoothly and expectations are met. The insurance companies follow the industry standard pricing for the region and there is no need to get multiple estimates. It is a felony to profit from an insurance claim and we will make sure your claim is worked honestly.
If you are unsure whether the damage to your home is insured or if the damage exceeds your deductible, call us at (918)621-1020 and we will perform an assessment. We will verify wind and hail damage, water or fire loss, or impact damage for you. If you had a tree hit the roof, or a car hit the house, we will also check the structural components for damage. We will call in a structural engineer if needed for an assessment as required by Oklahoma law.
Residential Repair will meet with the adjuster at the time of their visit to help with measuring and damage assessment. Keep in mind that some damage may be missed during the initial inspection and it is normal to add additional damage to severely affected properties.
Once the adjuster has completed the line item detail showing the items to be repaired or replaced, the initial payment will be sent. This initial check will name the insured owner and any mortgage company. The mortgage company is listed as they are an additional insured party per the loan documents. Depending on the amount of the check, the mortgage company may endorse the check or they may require documentation of repairs prior to releasing the check. We can walk you through this process and provide your mortgage company with our documents, W9, conditional lien waiver, and our proof of insurance.
IF A CONTRACTOR ASKS YOU FOR MONEY UP FRONT – DO NOT DO BUSINESS WITH THEM!
At Residential Repair we understand how stressful homeowner claims can be. Please do not hesitate to contact us so we can walk through this process with you and be your professional advocate with the insurance company.