Property & Casualty Insurance/Does the house rate exist?
The mitigation company did not complete all the itemized items on the insurance estimate because the insured had already done some mitigation such as removing the smelly carpet, extracting water and cleaning the house etc. When the insured demands for the reimbursement by deduction of the money from the insurance estimate to pay himself, the adjuster said he would reimburse the insured by using the house rate that is lower than the rate on the original estimate. The rate on the insurance estimate is to pay the professional company. Does the house rate exist or that is just something that the insurance tries to pay low? Thank you for your answer.
When an insurance adjuster adjusts a loss, there is a setting within the estimating program that allows them to adjust when a homeowner is doing the repair versus a professional. This does lower the repair estimate substantially. This adjustment can be done with the click of one button if a homeowner is doing the entire repair, or line by line if you were to do some of the repairs and a professional completes other ares of the repairs.
There are many insurance adjusters that don't use that feature within the estimating program. In other words, they're trained to pay based on a professional to do the repairs and it's your choice whether or not you want to hire a professional or do some (or all) of the repairs to your home.
As you know, when a homeowner does a repair, it normally costs substantially less to complete the repairs. Homeowners don't have the professional costs such as licensing, liability insurance, workers compensation, advertising, work telephone, office staff, tools/equipment, work vehicles, insurance for the work vehicle, office expenses, secretary, etc...
I hope this information has helped. Hope you had a great weekend!