Claim Explanation
I am Curt Lambrecht, the owner of South Metro Homes Inc. since 2006. Since then, I have been managing storm damage claims and have encountered a wide array of situations. Rest assured, I have the expertise to navigate the paperwork and tackle the challenges associated with claims.
The final amount can vary, considering factors such as the extent of damage, the age of materials, and other items covered by the claim. You can be certain that your fiscal responsibility is confined to the deductible and nothing more unless you opt to upgrade from your current arrangement or have non recoverable depreciation. Typically, depreciation is retained, but it is "recoverable depreciation" that can be reclaimed, provided the contractor's invoice aligns with what the insurance company has issued.
To ensure accurate consideration of all items and payments, it would be mutually beneficial if you could provide me with a copy of your insurance paperwork. I have attached a sample claim to illustrate the typical process, which can be intricate. Feel free to contact me with any questions—I look forward to working with you!
THE INITIAL INSURANCE PAYMENT
Typically, the initial payment, after deducting your deductible, is generally sufficient for your contractor to purchase materials and commence the work. Frequently, the first payment will require co-endorsement from your mortgage company.
If your payment is co-endorsed, obtaining a signature from your mortgage company is necessary before depositing the check into your bank to initiate the work. If the payment is not co-endorsed to your mortgage company, you can simply deposit it in your local bank. Note that your bank may or may not have a policy of holding insurance funds for 7-10 business days.
HOW DOES DEPRECIATION FACTOR INTO MY CLAIM?
Your insurance provider might withhold depreciation, which represents a portion of your settlement reserved until necessary for completing your home repairs. Typically, policies cover the full replacement cost, deducting only your deductible. If uncertain, consult your roofing contractor or insurance adjuster.
The depreciation reimbursement is usually disbursed only upon submission of a final invoice by you or your contractor.
If you do not utilize all the depreciation for your home repairs, your insurance company will deduct your deductible from the lower-priced invoice, not the
initially allowed total claim.
Simply put, any unused depreciation funds during your home repair process will be retained by your insurance company.
Upon receiving the final invoice, your insurance company, and occasionally your mortgage company, may conduct a final inspection to ensure that all billed work has been completed with quality materials and workmanship before releasing the second depreciation check.
WHAT ABOUT ADDITIONAL COSTS (SUPPLEMENTS)?
In the event of a storm or other situations where material and labor expenses are escalating, it might become essential to initiate a supplemental claim to account for these increasing costs or missed preexisting items in addition to code required items. Once approved, your insurance provider will authorize a third payment, extending beyond the initial claim, to assist your contractor in managing the heightened expenses. This payment will be addressed to the homeowner and may require the mortgage company's endorsement.
MY INSURANCE DEDUCTIBLE
The deductible is the portion of your claim that your insurance company does not cover. It is worth noting that the deductible for your roof may differ from the deductible for the rest of your home in some cases. To determine this, review your policy or contact your agent for clarification. Your sole responsibility is to cover the deductible – nothing more. Except in cases where you choose to enhance or include additional items not covered in the scope of repair. We will guide you through each step of the claims process, managing all the intricacies to ensure your home receives the necessary attention.
If you do not utilize the entire allotted amount, the insurance company retains the difference and settles the remaining balance.