Insurance Claim Estimates… Policyholders Should Always Get A Second Opinion!

Too many policyholders rely on their insurance company to visit their property, inspect their claim, and provide a claim settlement for their damages. Most simply accept their carriers insurance claim estimate. This should almost NEVER HAPPEN!

I’m not saying that there are no good adjusters out there and that they can’t be trusted, not at all. There are many excellent adjusters that do an excellent job. However, are you under the delusion that they will never make a mistake, miss hidden damages, or that they all have multiple years of experience with insurance damages and insurance claim estimates? Not a chance.

Have you ever had a second opinion before having your car fixed? Have you or anyone you know ever needed a second opinion after seeing a doctor? A second opinion when shopping for a car, computer, or hiring a contractor? Have you ever had more than one estimate to build or repair something for your home? I’m assuming you’ve answered yes to at least one of these questions, if not more. Then why do policyholders allow insurance company adjusters to TELL THEM what they will pay on their insurance claim… based on the insurance claim estimate that THEY provided?

Most insurance adjusters have learned how to pass a state insurance license exam and learned how to use an insurance claim estimating program… but have never worked on an insurance repair job. Many have never built or repaired a home, nor have they ever worked for any type of Construction Company. Chances are they will miss something needed to properly complete the insurance claim estimate and repairs on your property.

It’s YOUR property, it’s YOUR insurance policy, and it’s YOUR responsibility to protect yourself. You do this by havig your own insurance claim estimate prepared. Again, your adjuster may be dead on with his/her analysis. Regardless, you should have a contractor or insurance claim professional provide you with a detailed, line item insurance claim estimate to compare to.

What Is A Line Item Detailed Estimate?

Sometimes a contractor will use a complete sf price for a roof or deck, but the insurance company is requesting the estimate be broken down per line item. Using the roof example; the insurance companies want to see each process of the roof replacement, AND each type of material being used on the roof – listed separately. Here’s an example;

Description                         Qnty                Unit Cost            Total 

Tear off 3 tab – 25 yr.
composition shingle          27 sq                     $42             1,008.00

Replace 3 tab – 25 yr.
composition shingle
roofing – incl. felt               30 sq                  $162.09         4,862.70

Drip edge                         313.33                    $1.29            404.20

Flashing – pipe jack             2                         $22.08            44.16

Continuous ridge vent
aluminum                           70                         $5.51            385.70

Step flashing                     42.33                    $5.58             236.20

Skylight flashing kit             2                        $66.00            132.00

Digital satellite system
Detach & Reset                   1                       $101.14            101.14

                                                                         Total            $7174.06

The numbers in the above example are fictitious; however, it shows the basics of a Line Item, Detailed Estimate. Each line item is broken down in detail and displays the description, quantity, unit cost, and total for each separate line item. This type of detail is needed so the insurance company can review and compare each separate line item and unit costs with their own software. Having the insurance claim estimate formatted the way the insurance companies like to see them, results in a faster settlement.

In the event of an insurance claim dispute a more detailed estimate allows for a smoother, less time consuming process. It’s difficult for the insurance companies to dispute insurance claim estimates that are presented to them in the exact format that they are requesting.

Watch yourself, educate yourself, and protect yourself by obtaining a second opinion on any and all insurance claim damages you incur. If you won’t look out for yourself… who will?

Watch this video about license roof contractor

Please help to answer the question about license roof contractorShould I hire a general contractor to do the roof?
One of my neighbors, who is very handy, offered to do the whole roof for me at half the price of the estimates I got from general contractors. This neighbor has done fence and other minor jobs for me and I have been very satisfied. He's also done roofs for other houses in the neighborhood and they have all turned out well. But he is not licensed. He told me that as a homeowner, I can be my own general contractor and simply hire him as a laborer. But since he has all the know how, he and I would go to Home Depot together to buy all the materials and I would pay him when the job is finished. I was concerned about liability and he told me that he would be willing to sign anything that says that he would not sue me.

My question is, would it be wise to simply hire my neighbor or should I get a licensed contractor to do the roof. If I do hire a licensed contractor, what would I be gaining besides paying twice as much for the same job? Are there inherent risk? If there are, what can I, as a homeowner, do to protect myself? Should I get more insurance?
About Author

Joe Brennan -
About the Author:

Copyright of Insurance Claims Group, Inc. & Joseph P. Brennan: Joe Brennan is President and owner-operator of Insurance Claims Group, Inc., a national independent adjusting, appraisal, and umpiring firm. Joe has been in the property loss business for more than 24-years. His loss experience began as a contractor – builder, which included water and fire damage restoration repair services. After 20-years of insurance restoration estimating and repair experience, Mr. Brennan became a licensed independent insurance claims adjuster. Joe has maintained his IICRC Certification in both Fire and Water Restoration and also maintains active adjuster licenses in 10-states. Throughout his career, he has handled many multi-million dollar losses, both commercial and residential. The amount of combined experience and knowledge of new construction, damage repairs, and insurance claims handling has advanced his ability to act as a Dispute Appraiser and Appraisal Umpire. Mr. Brennan is highly educated with the appraisal process and has acted as an appraiser and umpire on dozens of claims. Mr. Brennan can be reached at;

Insurance Claims Group, Inc.
2054 Kildaire Farm Rd., Suite # 426
Cary, NC 27518
Ph: 919-669-9111
Fx: 919-573-9595
Web: http://www.insuranceclaimsgroup.com & http://www.insurance-appraisal-servies.com

Copyright of Insurance Claims Group, Inc. & Joseph P. Brennan: You may freely republish this article, provided the text, author credit, the active links and this copyright notice remain intact.