How To Make Sense of a Home Insurance Claim

Most of us can benefit from having more information regarding insurance companies and their processes. Before COVID, insurance adjusters would usually come on-site and determine the cost of reconstruction, but things have changed. 

• The insurance adjuster is someone who investigates claims to determine how much (or if) your insurance company should pay you for damages/losses to your stuff or your place.
  
• Reconstruction is the process in which we put the home back together. This is done if during the mitigation process anything had to be removed in order to inspect for the extent of damage (for example, the carpet, carpet pad, flooring, drywall, cabinets, etc.) The Adjuster handles the estimate for the value of reconstruction or rebuilding.
  
• Mitigation is the process in which, after the source of the damage (fire, leak, mold, etc.) is addressed, we clear out, clean, dry, disinfect, deodorize, and prepare the property for the rebuild.

Presently, mitigation companies like ours have been working with adjusters since many have not been going on-site due to COVID restrictions.

How Do Insurance Companies Work?

Since we can’t speak for insurance companies, this is what we typically have experienced in the past. In the event of property loss, there are three areas that may require estimates:

1. Mitigation
2.  Rebuild
3.  Pack Out of Contents

Mitigation

Our highly-trained and experienced PuroClean technicians do this. Once we fix the initial source of damage, we go in and clear out, clean, dry, disinfect, and deodorize the property and prepare it for the rebuilding process. 

Rebuild

Almost everyone uses the same computer software for estimating costs. It’s the ‘language’ of insurance companies. This program accounts for costs associated by linear feet (e.g., base trim replacement is measured by the linear foot), square feet (e.g., replacing flooring or drywall is measured in square feet), cubic feet (e.g., if we’re doing a fogging for disinfecting or odor control that’s measured by the cubic foot), or specific task (e.g., a task is like detaching and resetting a refrigerator or washing machine). Additionally, PuroClean Northwest has a referral network of highly-qualified contractors who can take care of everything needed to rebuild your home or business.

Pack Out

A pack out is the process of relocating the physical contents of an affected property for cleaning. PuroClean can do this, as well, or refer quality pack out and storage companies. We carefully document and move all items into a secure storage location until the home is ready for them to be returned. This process is not always required, depending on the scope of work. However, insurance companies will create a separate estimate for the process when necessary. Ultimately, the client should be sure to take photographs of all unsalvageable contents to provide to their adjuster to ensure compliance and organize the contents listed on the claim.

Insurance Companies Sometimes Require Testing

Sometimes if vinyl flooring, blown-in insulation, or the drywall has to be removed it will require testing for asbestos. We will arrange for testing, and can arrange for asbestos abatement if required. This is generally billed to insurance directly and is part of the claim.

What Do Insurance Companies Cover?

Well, of course, each policy is different. If you have questions about your specific policy, you should reach out to your agent or underwriter for clarification. But, if you’re like most people, you’ve paid insurance premiums for years without ever making a claim. Thus, you may not have much experience with how insurance works regarding property damage. In short, insurance covers sudden and accidental losses (pipe breaks, toilet back-ups, stove fires causing smoke damage). They don’t cover groundwater intrusion (no one does – that’s a FEMA insurance matter, and most people don’t have it), long term damage (mold in the attic), or dry or wet rot (from long-term hidden leaks). If you experience any of these, check with your adjuster to confirm if this is covered under your individual policy.

Policies have deductibles that can be either a flat rate (like $1,000 per instance,) or a percentage of the replacement cost of the home structure, (e.g., one half of one percent on a $600,000 home equals $3,000). The insurance company pays the insured the final approved claim amount less the deductible and less any depreciation, if applicable.

Regarding Depreciation

If you claim the loss of a five-year-old carpet, your insurance policy will provide payment for a five-year-old carpet because that’s what you lost. Say the same carpet installed new would cost $3,000. You may get paid $2,300 since there is depreciation. If you don’t replace the flooring, the insurance company still paid you for what you lost. However, many policies provide for full-replacement cost value. Insurance will provide an initial check for your actual loss, withholding deductible and depreciation. When you have the carpet replaced, you may get another check for the withheld depreciation.

We have done hundreds and hundreds of jobs – water, fire, smoke, mold, biohazard, COVID deep cleaning, and more. We’ve seen a lot and are happy to take the time with you to advise you as best we can on insurance matters. We do not speak for insurance providers in any event, but we can give you a lot of general information and help you work with your adjuster.

Contact PuroClean Northwest for Property Restoration Services

Call us at (425) 616-1717. We provide professional water damage restoration, fire damage restoration, and mold and biohazard remediation. And, we will work with your insurance company to help you navigate the stress of dealing with a disaster.