Pembroke: Renovations as part of an Insurance Repair
Over the last few years we have been working with more and more homeowners who are doing renovations as part of an insurance repair. For people who have had damage to their home it can be an overwhelming experience. Trying to get your insurance company and contractor on the same page as you while living in a house that needs repairs can be stressful.
You should recognize that managing your insurance company during this process is really a negotiation. The first thing you should do is get a copy of your policy and look through your “declarations page” and endorsements so you can get a general sense of what is in it. Items you should be looking for:
- Depreciation amount.
- Your deductible amount.
- What exclusions, exceptions or other limitations does your policy contain?
- Does your policy cover replacement cost or actual cash value costs?
- Do they cover the cost to upgrade to the current building codes?
- Do they include money for debris removal (Ie Dumpster)?
- How are payments made to the contractor?
- How will your insurance company handle additional damage that may be found once your contractor gets started?
When reading the claim report provided by your insurance company you should be aware of the square (or lineal) footage they are offering to pay on.
For example, in a recent Insurance claim a client asked us to look at, the insurance company was only including the claim paint 0.13 lineal feet of baseboard for a price of $0.16 and then depreciated it $0.02. We cannot come in and paint 1.5” of base board for $0.14. You should figure that you will need to cover the difference to paint the entire section or room. Most contractors have a minimum they charge.
Many insurance companies use a standard estimating program where costs are calculated by using a national average. Utilizing a national average is tough for New England homeowners because our costs are typically above the national average, and therefore a regional or local costs basis should be applied. We often find that once we speak to a claims agent we have to explain this to them. Almar also uses a estimating software but it is populated with local pricing and historical data from our 57+ years in business.
If you and your insurance company cannot get on the same page about what should be included in the scope of work and how much it will cost to have a Professional Remodeler make repairs that will be uniform and consistent with what you had before the damage then we often recommend reaching out to a public insurance adjuster who can work as a third party to help get you the money you are entitled to.
If you have questions about larger Home Improvement projects please let my team know. Our team has been working with families like yours for over 57 years. And it is important to us that everyone works together to create the best possible experience. If you have questions about your home improvement project please let us know. https://www.almarbuilding.com (781-826-2577) and watch our videos at http://www.youtube.com/almarbuilding.com
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Almar Building & Remodeling Co (Hanover Ma). As a third generation family owned and operated company for over 57 years Almar Building has all the benefits of a small company with the options of a larger company. From Additions, Kitchens, Bathroom, Basement Renovations, Siding, Windows, to Doors Almar services the entire South Shore of Massachusetts including: Hanover, Hingham, Pembroke, Norwell, Scituate, Cohasset, Duxbury, Hanson, Abington, Rockland, Holbrook, Braintree, Weymouth, Milton, and many more towns.
