Insurance Projects, Interior Insurance, Interior Renovations and Remodels

Expert Answers to Common Interior Insurance Claim Questions | New Beginnings Construction

February 4, 2019

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4 min read

Hello and welcome to our learning library, where New Beginnings Construction will provide answers to frequently asked questions about our interior insurance renovation and remodeling projects.

Question 1: What would qualify me to file an interior insurance claim?

Every insurance claim must have a “triggering” event otherwise known as a covered peril. This is a sudden catastrophic loss. Examples of this are a fitting that bursts from your dishwasher, a toilet flapper and chain that malfunction, a leak from your roof. Interior claims have endless possibilities but ultimately coverage will be dictated by your policy language.

Question 2: How does the insurance process work?

After filing a claim, your insurance company will send out a field adjuster to inspect the damage at your home. Their job is to gather evidence. They will talk to you about the damage, take photos, and measurements of the rooms affected. They then submit their findings to the desk adjuster, who makes a determination on the scope of damage.

Question 3: How will my insurance carrier know how much it is going to cost to fix my home.?

Every insurance carrier relies on either Xactimate and Symbility for repair pricing. Each platform provides labor and material pricing for each and every aspect of your job. Here at NBC we have access to and in fact are able to provide quotes within each platform.

Question 4: My insurance company says I need three quotes?

I would ask, does my policy require three quotes. You are only bound by the four corners of the documents / contract that you have with your carrier. I can tell you that my insurance policy does not require me to get three quotes.

Question 5: Why should I hire a contractor to restore my property after a loss?

You should hire a contractor to restore your property after a loss for your protection. In performing your repairs, we would highly recommend that you engage and only work with a licensed general contractor like New Beginnings Construction. A general contractor is able to pull the required permits, have inspections performed and will complete all work pursuant to manufacture specifications and local building codes.

Question 6: How long does a claim take to settle?

Claims can range in timeframe depending on many factors, but typically we would be looking at anywhere from 10 to 12 weeks from before your carrier and contractor determine the proper scope of work.

Question 7: What is a deductible and who do I pay that to?

A deductible is the policy holder’s portion of a claim that is dictated by their policy. By law, the homeowner must fund their own deductible payable to their contractor and the insurance company funds the remainder of the claim.

Question 8: Often times we are asked what is the difference between RCV, ACV and Depreciation?

RCV stands for Replacement Cost Value – which is the total value of your claim.

ACV stands for actual cash value, that is the amount the insurance company pays once your claim has been approved and before work begins. These funds allow for your contractor to pull a permit and begin to purchase materials for your project.

Depreciation is paid to the homeowner once all repairs have been completed per the agreed upon scope by a licensed general contractor.

Question 9: What happens if we find hidden damage or the scope of work changes?

We photo document the entire construction process. If any hidden damages are discovered during the construction phase, we document the issues and relay the additional damages to your carrier. We will ensure that no further damage occurs while your carrier is given an opportunity to view the additional work and cover the associated costs. Once the approval is received, we amend the original scope with a change order and resume production.

Question 10: Can I make changes to the interior or exterior of my home during an insurance restoration project?

Insurance will only pay to bring the home back to pre-loss condition. With that being said, any upgrades will be your responsibility and will be paid out of your own pocket. Every claim is unique so this is really a conversation that you will need to have with your contractor.

And that wraps up our Q&A session! We hope this info has been informative and helpful.