AboutDeanna Terry Expertise I am qualified to answer questions about home owners personal property claims, especially fire claims. I am able to answer questions about A.C.V vs. Replacement Cost as well as the reality behind cleaning and restoration. I can answer questions regarding policy compliance as well as questions of what to do when you don't agree with the insurance company's adjuster.
Experience I have over 5 years of experience adjusting claims for home owners, not insurance companies. I was also a fire victim. I am the founder and President of a non-profit organization that assists fire victims in specific counties with filling out and filing their personal property claims.
Organizations President of 1st Hand fire victims assistance program
Education/Credentials Associates Degree in Business Administration
Specialty Courses in Insurance Adjusting
State Civil testing
Yearly Continuing education
Awards and Honors United Way Award for Community Service to Fire Victims
Question I think I may have a total loss from a tree falling on my rental property in
Texas during hurricane Ike. I can figure close to what it would cost me to fix
up the house, since I remodeled it last year, but how do the adjusters figure
the cost. It has structural damage and I do not know how much it will take to
fix that not to mention building permits and such. If they do total it and I
decide not to rebuild what happens. I am hoping that they total the house
and I can just sell for lot value and move on. If they want me to fix or rebuild I
have months of work and lost rental income to deal with. Please advise.
Answer Hello Jason,
I am not as well versed with dwelling as I am with personal property, however I will share with you what I do know.
I would recomend you obtain an unbiased estimate for the damage to the home. It is your duty under your contract to prove your damage, you are NOT bound to the insurance companies idea of what it will cost to repair the damage.
A home is not like a car where "totaling the house" would mean anything. (with the exception of a few states where the house being a total loss would mean they must pay you the policy limit)
They owe you for the actual cash value of the repairs needing done. If you do not repair the home and wish to sell it for the property value, you can do that. The difference is you would not recieve the rest for replacement cost value. Since you just remodeled the home last year, this may not affect you.
Just in case your next question is "what is actual cash value", basically they owe you the amount to repair the house minus depreciation. Depreciation is usually based upon the condition prior to the damage, age of the original work, or some companies just deduct a standard percentage. The balance would be paid upon completion of the repair, if you do not repair the home, you do not receive the balance.
I would make sure they do not use a standard percentage with yours since you just remodeled the home.
A few tips for you:
Sometimes the insurance company will try to pay you "market value" for the home if the repairs exceed the value of the house. They may try to make you feel "guilty" or tell you this is what is "fair". Unless this is a provision in your contract with them, they owe you the cost of the repair and abiding by their contract with you is what is right and fair.
I would not advise the insurance adjuster of your desire to sell the property and keep the money. This is a right you have, but giving him this information is unnecessary and will most likely reduce the amount of actual cash value he offers you. We have a saying about this, the more you talk to the adjuster the lower your settlement offer will be.
Consider hiring a reputable public adjuster in your area to handle this for you. We have a about this too....adjusting your own claim is like going to divorce court using your spouse's attorney.
A public adjuster will obtain a properly written estimate of repairs to the house for you and will negotiate your claim, reducing your headaches and making sure it is done correctly and to your fullest benefit under your contract.
If you wish to find a reputable public adjuster, the best thing to do is check Napia.com which will have listings in your area, ask for references from whom you may wish to hire and follow up on them, ask to see a few similar cases they have settled for other clients. Basically what you should see looking at a dwelling case is the amount the insurance company submitted, the amount the public adjuster submitted and what the final result was.
A public adjuster will charge a fee based on what they collect for you, usually 10%. However, in most cases the fee is made up with the proper submission and execution of your claim since they are well versed on what you are entitled to under your policy and are there to obtain the proper settlement for you.
You may wish to attempt a better answer from someone who specializes in dwelling.
