Guide To Filing An Insurance Claim

Below are helpful questions and answers to reivew before filing an insurance claim.

How does a client recoup their costs from an insurance company?

Once a claim is filed with an insurance company they assign a claims handler or adjuster, this person is familiar with how a policy is read and what is covered.  Once a claim is covered they are obligated to pay reasonable costs from a contractor of the home or buiness owner's choice.  They may want to use certian programs to cut thier cost with contractors but in the end it's your choice.  Once a claim is covered, then the adjustor is responsible for paying the costs from a contractor or homeowner in a reasonable amount of time, directly to the homeowner or contractor.

What if they will not pay our prices?

An adjuster's responsibility is to settle an amount that is the least amount of expense for the insurance company.  Some may not care about the quality of your contractor, but that probably isn't your adjustor.  However, if you do get resistance you may need to insist on the contractor of your choice rather than negotiating for lower prices and quality.  A contractor should not lower prices and have to sacrifice quality.

How long will the project take?

There isn't any time specifically set for any project.  Typically, drying may take 3-14 days.  Factors that may slow down the process could be, but are not limited to, additional water intrusions, contract or authorization signing postponement, materials being special ordered, change orders, insurance company negotiations, deposits not received, or other construction hang-ups.  A good project manager sets timelines and estimated completion dates after all project specifications are made.

Why does my adjuster want my estimate from my contractor to be detailed rather than a bottom dollar?

Insurance companies typically have set price lists they insist are the costs of a contractor.  These pricelists are great for them to use as a guide to pay the lowest cost possible.  However, it doesn't take price increases on materials, fuel costs, or labor prices for the area into consideration.  Each business is different as overhead for one company may be different for another.  These factors need to be known by a contractor in order to remain profitable.  As we all know, a business without a profit is not a business that will be around for long.

What happens when they want me to get another bid?

This process typically happens when the adjuster feels they can save some money by using one of their low cost contractors.  These "low cost contractors" are expected to give free estimates and then once they have approval for a project, they will have to recoup the costs by passing on other fees to the paying client.  This can be avoided by choosing a contractor you are comfortable with and letting your adjuster know you are not interested in bidding your project.