Structure Estimating and Consulting
We provide Xactimate structure estimating services for any type of residential and commercial claim.
A comprehensive structure estimate in an insurance claim is crucial in determining the outcome of the structure settlement after a loss. Every detail must be captured, calculated, and incorporated into the estimate. We are here to help. We have written many estimates ranging from hundreds of dollars to multi-million dollar projects.
Why do you need an unbiased estimate?
Many people think that they do not need an estimate because their insurance company or the contractor who the insurance company has recommended will write an estimate. These stakeholders in your claim often offer estimates for free or for a discount. There are reasons for this, as no one will spend hours and sometimes days, to do a complex and detailed estimate for free.
Reasons to seek an unbiased estimate:
1. The insurance company adjuster may or may not be fair, but they will always be biased toward the insurance company’s best interests.
The insurance company adjuster, even if they write an estimate for what appears to be the policy limit, will not always be looking to maximize all your forms and endorsements on your policy. Many adjusters or one of the contractors on “the list” simply reach the “Coverage A – Dwelling” stated policy limits and to you, the insured, it appears as if you’ve reached policy limits. The problem with not understanding the correlation between the policy and the estimate is that coverages for landscaping, debris removal, and other costs are many times additional coverages and are defined through endorsements in the policy, but are not listed on the declaration page. If this is not making sense or you’re not sure of every available coverage within the policy, then it would be beneficial to talk to us so we can explain the coverages and how this affects your estimate. If there are tax implications, subrogation, or policy reformation available, then a proper estimate (regardless of the policy limits) is necessary to take advantage of all possible recoveries. You deserve to be properly and fully reimbursed for the damages of your loss, and a third-party estimate can often be the catalyst for the best possible recovery.
2. Restoration contractors may be biased toward their own best interests.
Restoration contractors are hoping to make as much money as possible from every job. The problem is, most insureds do not understand the profit margins of an estimate and how the figures are compiled. Most insureds never read the estimate or the contract provided and simply move forward hoping to get their lives back together as quickly as possible.
As the insured, it is up to you to understand what is reasonable in order to prevent being taken advantage of, and to remain in control of the rebuilding process. Always remember that this is your claim and your restoration project. No one has the right to control the process until contracts are signed. The best way to stay in control is to have an unbiased, third-party estimate written.
You should do this before you sign any contracts.
An unbiased estimate will provide you with some time to gain control of your emotions, allow some of the shock of the loss to subside, give you enough insight to stay in control of the finances, allow you to understand the process of reconstruction, and negotiate the best possible outcomes. You should never sign a contract on the hood of your car the day the loss occurs unless it’s for mitigation of emergency services. If you do sign for emergency services ask to take a few minutes alone to read the contract. Many times the contract will give the restoration company the right to “limited power of attorney” to have checks issued to them directly and even allow them to endorse your check for you! Some contracts allow the contractor to rebuild your entire home or business structure with nothing more than a paragraph stating that after mitigation it’s agreed that the company rebuild the structure as well. Small lines like that in a contract suddenly limit your control of your claim and after a certain time frame only litigation releases you from a possible lien. Take control of the situation by understanding the construction, the estimate, and how it’s applicable to your claim before ever signing for reconstruction.
3. You have options!
It is best to know all reconstruction costs up front. There are different options under the policy that can allow creative options on your part as the insured. You can choose who rebuilds your property, you rebuild the way you want to rebuild. We would be glad to meet with you to review your policy and help you understand your options.
Remember:
Never fall for the restoration contractor line: “we will just make a supplemental estimate if we find additional damage.”
This is said to put you at ease, but this is actually a dangerous game to play. Supplemental estimates can slow down the rebuilding process if not agreed upon immediately between the insurance company and the contractor. There may not be enough funds for the “additional damage” on the policy so will the contractor’s request for the supplemental be covered by your policy? If the supplemental estimate is not covered by your policy or agreed upon by the insurance company, then you can get stuck with the bill. Do not take the chance of any misunderstandings under this guise.
The insurance company may recommend a list of contractors, but you do not have to use anyone on their list.
You have options, and may want to consider the agenda of the recommended contractor and the insurance company, their relationship, and your relationship with them. The insurance company may make a recommendation or give you several contractors to choose from but it will clearly state in all paperwork from both the insurance company and the restoration contractor that the contractor choice is your choice, and they do not work for nor are they affiliated with the insurance company. Even with an approved contractor program, every contract will still keep a separation between the insurance company and any contractor. The insurance company is never responsible for the actions of the contractor! It will also clearly state that any additional funds not covered by the insurance company is your responsibility. Being on the insurance company list of preferred or referred contractors is a big benefit to the contractor. The adjuster brings them a lot of work. There may be highly reputable restoration companies recommended by insurance companies but one cannot deny that the adjuster’s agenda is to protect the liability of the insurance company, and the “recommended” contractors will be more pliable by the adjuster on the repair methodology, costs, etc., if they feel they may get ten more jobs from that adjuster or insurance company during the course of a year. There is nothing wrong with either agenda, if it is fair to you the insured. The only way to make sure everyone is being fair is to completely understand the repair process and the finances.