AHB General Contractors - Commercial-Residential- Remodeling

Homeowner Insurance Claims Process

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Safety First

Protect yourself and others. Always be careful before entering a damaged building.

Report downed power lines or gas leaks to the utility company.

Keep electricity turned off if there is standing water in the house.

Never touch electrical components while standing in water. If your safety appears at risk, leave the premises immediately.

Report your Loss

File a claim with your insurance company for damage to your home. Your insurance company will then send out an adjuster to determine the scope of damage. The adjuster will provide you with a document called an "adjustment" This adjustment defines the scope of damage in a line by line format and will give a total dollar amount of what it will cost to replace/repair the damage to your home. In order to better represent you and your project, AHB General Contractors requires a copy of your insurance estimate to help clarify what repairs and/or replacements have been included on your claim. This total is called a Replacement Cost Value (RCV)

The formula is as follows:

Total damage (RCV)
minus
Recoverable Depreciation
minus
Deductible
= Insurance Payment (ACV) Check Payable to Homeowner and/or Mortage Holder

Recoverable Depreciation
Depreciation is the loss in value of an asset because of usage and/or the passage of time. The insurance company holds back the "Recoverable Depreciation" until proof that repairs has been completed is received. This proof usually comes from the contractor. Recoverable depreciation is "incentive" money that has already been determined as needed by the claimant to help with repairs. More times than not, the initial check is NOT enough to cover the total of repair and the claimant may be in a pickle if they cannot find a contractor to work with them on a partial payment and then reimbursed by the insurance company after completion of repairs. This ensures that the only "expenses" you incur out of pocket is the amount of your deductible.

Deductible
The deductible is paid directly by the home owner and is the amount that must be exceeded in damage costs before your insurance company becomes liable under a covered claim. Bascially, when you purchase your insurance policy, you agree to pay the first specified amount of any damage as your share of the cost of repair or replacement.

Payment(s)

Any advance payments will be applied to the total settlement amount. As agreements are reached on the value of damaged property, additional checks may be issued.

If you have a mortgage on your home, the check for repairs to the dwelling may be made out to both you and the mortgage lender. In these cases, the mortgage lender will have to endorse the check. Your mortgage lender may put the money in an escrow account and pay for the repairs as the work is completed. Your mortgage lender may want to inspect the finished job before making the final payment to the contractor. AHB General Contractors will meet the inspector at the site and review your complete claim.

Call your salesperson when the first check comes in from the Mortgage Company. The first check is due as down payment. Please check the materials to verify the decorative selections.

Upon completion, AHB General Contractors will do a final inspection on the job and go over the checklist with you. Please note any items that need attention (if any) and sign the final inspection checklist.

AHB General Contractors will email or fax the final bill directly to the insurance company and a provide a copy to the homeowner along with lien waiver and a copy of the signed warranty.

Upon receipt of the final insurance check, the invoice/balance is due. Please contact AHB General Contractors to pick up the final check.

Contractor Selection

You have the right to choose the contractor. Your insurer may provide you with a list of pre-approved contractors to save time and hassle, or you may be asked to obtain written estimates from a few licensed contractors of your own choosing. Regardless of the procedure, the policyholder has the final say in contractor selection.

Obtain all information in writing - AHB General Contractors will provide a detailed written contract outlining cost, work to be completed, repair time, payment terms, and our guarantees/warranties.

AHB General Contractors will provide you a Final Affidavit of Payment - a signed statement attesting that all payments have been made for materials and/or labor.

Ask for references and check them - AHB General Contractors will provide a list of references with contact information for each homeowner.

Ask for the contractors drivers license and write the number down along with a description of the vehicle and license plate number. Many times contractors come into disaster areas from out of state when damage is widespread.

Some Final Notes

Track all expenses associated with the loss.

Keep copies of all your paperwork for future reference.

Dont start permanent repairs until the insurance company claims adjuster has assessed the damage and you have been given the go-ahead.

You have the right to negotiate the settlement..

3695-F Cascade Road #1367
Atlanta, Georgia 30331

bids@ahbgeneralcontractors.com

(404) 420-8928 Fax