Understanding Your Insurance Adjuster’s Estimate

People often ask, “How can I know if my property's damages have been properly estimated?”

The answer is,  that if you are fully insured…. and your coverage limits are realistic and up to date… and your loss is a covered loss,  then, you should have no expense, other than your deductible in restoring your property. You should never  have to do the repairs yourself.  You should be able to hire professionals.  If you cannot do this then:

you are either underinsured,

your claim has not been properly estimated,

or you have left money on the table

you did not receive your recoverable depreciation  

If you don’t understand all of this read on. Get what you deserve!

Unless a person is a general contractor, the interpretation of an insurance estimate of repair can be quite daunting. Often times the estimate will be accompanied by a brief cover letter and sometimes with a check, usually made out to the insured and your mortgage company, if you have one.  There are several issues in regard to these estimates that are worth mention.

It takes time to create a good estimate:

The amount of time that elapses between the visit of your adjuster and your receiving his/her estimate for repairs will vary. It depends upon several factors. The first factor is often the workload of the adjuster. If an area has been hit hard by a storm or major event, then the adjuster may have a stack of claims already on his desk. Many adjusters try to work off of a first come, first served basis. Although insurance companies try to spread out the work load for their adjusters, it can become nearly overwhelming if the loss in a geographic area has been severe. The best thing to do is to ask the adjuster when he is at your home, “How long do you think it will be before I will hear back from you with an estimate?” A normal response is usually somewhere between one and three weeks.  Take note of the adjuster date and write it down. If you have not received it by that time, then call the adjuster and inquire as to the delay. Don’t forget to call.

Once you receive the estimate, you will need to review it!

Before you will really know if an estimate is complete or not, you must do your own homework. To do this you must have your own damage checklist which you can then compare to the insurance company’s estimate. If you want a comprehensive free checklist to be used in your inspection, then email to Rick@RLCarteradjuster.com. These lists will help you so you don’t overlook damaged areas. Next, look at the damages found throughout your home.  If it looks as if all the issues are covered, then great! However, don’t fully assume that this is the case.

It is very wise to have a general contractor examine your home. If the contractor does not agree with the extent of damages as found in your insurance adjusters estimate,   then you are now in a dispute. Get Help.

Contractors cannot legally negotiate with Insurance companies as it is a conflict of interest and many contractors also do "significant work" as insurance company referrals. As such,  they will have no desire to "rock the boat" or "bite the hand that feeds them"

Since someone is going to have to perform repairs, you should immediately get a licensed contractor to come out and give you a written estimate for repair. If there is no new information, then you will at least have a contractor that can perform the work if you so choose.

Most of the time the insurance company’s estimate will be broken down under the following categories:

Additional structures

Exterior

Roof

debris removal

Interior

Personal contents

Another category of your claim may be  "Loss of use", however, this is usually paid as the expense is incurred by you. Loss of Use covers lodging or rent if the property is uninhabitable.  For more information on loss of use, you can read your policy or contact us.

It is very important to read your policy because you may have purchased additional coverage and not be aware of it and your adjuster may overlook it. For instance, you might have coverage for a screened porch enclosure, but not know it.  I have seen this often in the state of Florida.

Check your deductible

Your deductible is the amount of money that you must pay in a loss before your insurance company will pay. However, check your policy because some items may have their own deductible. This is sometimes overlooked. 

If there is a discrepancy between the Insurance adjusters estimate and the cost of repair /replacement get help.

This article is an excerpt from the book entitled “How to Settle Your Claim and Get the Money You Deserve!” written by Richard L. Carter.

Mr. Carter is founder of MyInsurance Adjuster, a consumer advocate that educates, informs, and assists property owners in claim resolution. He, his wife and family live in North Carolina. If you need help with your claim or have a question, contact him directly at the contact page above!

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