How to Handle Insurance Claim?
Here at Alpha Design Services, our representatives will work through your claim from start to finish including you in every step of the process. We are a general contractor specializing in this field so we will help with the paperwork, supplements, adjuster meetings, all the way through the process of choosing products & colors, ordering materials, scheduling crews, and final walk throughs with inspections.
What time frame do I have to complete the work?
It all depends on the policy you have with your insurance company. Storms affect many homes at one time, and insurance companies understand a contractor cannot get to all of your work right away. They usually give between 6 months to 2 years to complete necessary repairs. Remember that you can always file an extension if needed.
Will my rates increase if I file a claim?
No, because an insurance company cannot raise your rates due to an individual claim on a house. They can only raise rates by region or zip code.
What is depreciation?
This is the amount that is set by your insurance company to be withheld on a certain percentage of your claim due to age or other contributing factors.
What will I have to pay out-of-pocket expense as the homeowner?
You, as the homeowner, should only have to pay the deductible and any additional upgrades to your home that are not included with the claim.
What is Overhead and Profit? What is it for?
O&P stands for Overhead and Profit. This is a service that the insurance company is willing to pay a general contractor for complex claims with multiple trades with no cost to the homeowner.
What is the difference between Actual Cash Value and Replacement Cost Value?
ACV, Actual Cash Value, is also known as Fair Market Value which is the standard that insurance companies prefer when reimbursing a policyholder for their losses. ACV is equal to the replacement cost minis any depreciation (ACV = Replacement Cost – depreciation). RCV, Replacement Cost Value, is the cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose. This applies unless the limit of insurance or the cost actually spent to repair or replace the damaged property is less. The only difference between the two is a deduction for depreciation. Both are based on the cost today to replace the damaged property with new property. Example: If your damages equal $10,000 with a deductible of $1,000, the Replacement cost value would be $10,000. In other words, the insurance company pays $9,000 of the repairs and the customer pays $1,000 of the repairs.
Should I have my contractor meet with my insurance adjuster?
The short answer is, two sets of eyes are better than one. Alpha Design Services will represent YOU, not the insurance company. We are there to make sure everything gets covered and you get treated fairly.