Example #1

  Typical “Pre-Claim” Situation:

1. Damage occurs in Home or Office (often includes “Personal Contents”)

2. Property Owner begins frantic phone book search for qualified help

3. Help arrives and sometimes they solicit for other vendors to also respond

4. Owner is often asked for Policy Deductible as “down payment”

5. Owner then attempts to locate and contact their Ins. Agent

6. Agent (usually within 24 - 72 hours) forwards the claim form to your Ins. Company

7. Ins. Company then assigns Claim to Independent or Staff Claims Adjuster

8. Adjuster sets appointment around their pre-existing schedule

9. Adjuster arrives within next 24 - 48 hours and gives overview of what benefits are covered under the insurance policy

10. Adjuster measures, diagrams, photographs and “scopes” evidence and damages

11. Adjuster provides a very simple overview of what should happen next with the Claim

12. Usually within 48 – 72 hours the Adjuster sets up a computer generated estimate (per the policy provisions).

13. Estimates are usually calculated based upon Replacement Cost, less Recoverable Depreciation (or Non-Recoverable Depreciation) then subtracts the policy deductible. The net result is a dollar amount equal to Actual Cash Value (ACV) “payable”.

14. If no additional cause or coverage investigation is required then an ACV payment will be sent to the Policy Holder and will often include the name of any Lien Holder(s) with a financial interest in the property (Bank, Mortgage Company, Private Entity, etc).

15. Owner receives the ACV payment and begins paying the service vendor invoices

Note: For Temporary Emergency Services (eg: Water Extraction, Temporary Fencing, Board-Ups, Roof Covers, etc) payments are often made direct to these (Emergency Service (E.S.) Companies – when services and charges are found within normal price ranges!)

16. Once Reconstruction (“Build Back”) and investigation is complete on a Replacement Cost policy the Ins. Company may require a “Work Completion” form be signed by owner to pay the “Recoverable Depreciation” (often called “Hold Back”).

17. When “Hold Back” is payable to the Policyholder they in turn should immediately pay the Vendor’s final invoice balance.  

                      Replacement Cost (of damages)             $75,000.00

                      -  Non-Recoverable Depreciation            -  25,000.00

                      -  Policy Deductible                                 -    1,000.00

                                      ACV Payment                                  $49,000.00 (final payment)

Replacement Cost Policy    Payment Formula:                         Example: Coverage A (Dwelling)

                    Replacement Cost (of damages)            $75,000.00                        

                     -  Recoverable Depreciation                 - 25,000.00

                                 Policy Deductible                               -   1,000.00

                                 ACV Payment                                   $49,000.00                             

     Repairs Completed via:

      “Work Completed” form + Hold Back Payment  =   + $25,000.00 (final payment) 

HELPFUL TIPS:

1. Enlist the free and immediate referral services of Damage 9 1 1 for prescreened “Adjuster Approved” vendors! Our Adjuster Approved vendors work continuously with the Insurance Industry and understand the typical cash disbursements in the claim’s process

2. “Most” Service Companies who work primarily with the Insurance Claims Industry are very committed to maintaining spotless reputations. When any Service Vendor gets two or more Adjusters in any one metro area upset it can often be an instant death knell for that company!  We Adjusters do communicate frequently and informally between each other – this also helps make our jobs easier. Less than reputable service companies create delays and spiraling costs in the claim process and this often translates to added time and expense to us Adjusters! We do NOT like that!