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To help you find the right answers to I am sure the many questions you may have Empire Construction has collaborated with best-selling author and insurance guru Mr. Russell D. Longcore. Russell's books can be found at the link provided on Amazon.com. In the insurance companies eyes, Russell are certainly someone they would rather you know nothing about. Whether you are a home owner or corporate venture his insight into the insurance claims process will prove invaluable as do his contributions here. Many thanks to Russell from all of us here at Empire Construction’s premier roofing and restoration company.
Do I have a hail or wind insurance claim?:
If your home or property has been damaged in any way from what we call a "storm event” then yes in more cases than not you will have a legitimate claim against your insurance carrier. Here at Empire Construction we are able to offer you a FREE INSPECTION performed by an experienced project manager.
What is a storm event?:
In layman's terms it is weather related and documented to show an area of the country that has sustained damage to homes and personal property from the furry of Mother Nature. Here in the State of Alabama as well as many other States Hail and high winds are the primary cause and the result can be devastating to the home or business owner. Empire Construction tracks these storms and is able to assist in the defining of times and dates with your carrier.
Should I call my Insurance Agent?:
No not necessarily! An Insurance agent is exactly that an agent. He or She cannot file a claim on your behalf and is not permitted by most insurance carriers to represent you or even recommend others in anyway. Insurance Companies have trained people to handle this process and you had better make sure you have trained people on your side. Here at Empire Construction we have spent years investing and training our people to see you have proper assistance in this process. Simply never wing it or go it alone no matter who says don't worry! Call a professional.
What if I called my Insurance Company already?:
No panic. They will have taken your information and likely given you a claim number and the name of an adjuster who will call and set an appointment to look at your storm damage. But now is the time to contact us. Do not wait to find out the results from someone working for the insurance company. You need your own team with feet on the ground and the ability to assist you the home owner. Remember this is your home not the insurance company's.
What is an Insurance Adjuster and what does he/she do for you?:
The Adjuster will either be an employee of the Insurance Company and or what is referred to as an "independent". But make no mistake whether an employee or an independent contractor he or she still represents the interests of the insurance company and not you. His or her job is to establish a "scope" of the damage and make a recommendation on behalf of the insurance company as to the type of repairs needed and in most cases offer you a cash settlement. * Beware of any adjuster that recommends any restoration contractor to you*
Why do I need assistance with the adjuster?:
The adjuster works for the insurance company and their interests, not yours. They are trained to look for damage and you need the same quality of representation on your side. They are human and can overlook items that can cost you thousands of dollars in repairs later and you likely will have no recourse to go back. The extra set of eyes Empire Construction provides can help with the true scope of the work and help assist in the fair market value for the repairs. After all you wouldn't represent yourself in court and you shouldn't do the same with your home or business since it most likely your largest investment and asset. A call to Empire Construction now could save you thousands in needed repairs!
What should I do if the adjuster wants me to sign anything?:
Never agree to sign off or accept full payment for your loss after an adjuster meeting unless you have representation there on your side and all parties agree. This will almost always result in costing you hundreds if not thousands of dollars on final repairs and possible legal expenses. Ask for the written report "scope of work" and seek professional help to confirm the adjuster’s opinions and recommendations. Remember this is your house and you are in control.Don't be fooled!
What should I do if I do not agree with the adjuster?:
Well this happens more often than you might think. Simply thank the adjuster for his or hers time and see them off. After they leave you and call your representative, they will contact your insurance company's disaster team and request a second inspection. This will almost always be approved simply via phone and your Empire Construction project manager will assist you in this process.
What about supplemental work?:
If an Adjuster has somehow missed something and additional work needs to be performed you have the right to request of the insurance company what is referred to as a "supplemental claim" for this additional work. But beware this request has to be made in most cases prior to completion of the work and MUST be approved by your insurance carrier first. The Insurance company at this point always retains the right to re-inspect as written on your scope of work sheet. This can put your project on hold for days and is yet another example of why you need representation from the start and not after the fact. Empire Construction is well versed in how to handle this type of additional claim and in most cases can expedite the process for you.
Can I just keep the money and not do repairs?:
YES and NO... If you decide not to fix your roof and choose to spend the initial funds known as actual cash value "ACV" elsewhere there are really a number of consequences that can take place so I will only mention a couple and would refer you back to Russell Longcore's book.
(a) The insurance company should you have a later claim for damage caused by roof failure whether on the exterior or damage to the interior of the structure the insurance company will deny your claim based on the fact they have already paid you for the necessary repairs and you elected not to do the scope of work as outlined by their adjuster. Thus this part of your policy is voided and you suffer the consequences.
(b) If you have a mortgage or loan on or against your home you will likely be in violation of your mortgage or loan contract should the work not be performed. This is why in many cases where the check is for more than $10,000 dollars the insurance company will issue the check payable to the property owner and the bank or mortgage company.
I can't tell you the number of times I have been with a client on a claim with the adjuster only to have the adjuster pull out a previous report and pictures of the old not completed claim. This cause’s one thing to happen for sure DENIED. And by the way it does NO good to change carriers as the insurance industry pulls from a national data base.
What is Actual Cash Value "ACV"?:
This is the amount you receive after all deductions. (your first check)
Math 101: The replacement value of your loss is $11,000 (for a new roof)
Deduct the depreciation (age of roof @50%) $ 5,500 (ie:30 yrs. shingle installed 15 years ago)
Deduct your deductible (example) $ 1,000
The Actual cash value "ACV" then becomes $4,500 (amount of your first check)
Now don't panic, after the roof and any other work required is completed Empire Construction will immediately follow through in filing the necessary paper work to recover the $5,500 in Recoverable Depreciation.
What is the Replacement Cost Value "RCV"?:
Replacement cost value is the amount agreed upon by you, your contractor and the insurance company to repair any and all damage caused you by an insured loss. Remember the insurance company is mandated through their policy to make you whole again. Do not go here without professional help! At Empire Construction we know what that cost will be and will fight for every dollar you deserve.
What is Recoverable depreciation?
Simply put it is the recoverable amount of money withheld by your insurance company until all work is completed to your satisfaction. Upon completion of the work and your approval Empire Construction will file with your insurance carrier the appropriate paper work. *If you do the work yourself and or hire the neighbor or a friend who is not a registered roofing/restoration company then it is unlikely these funds will be available to you. The reason for this is that the insurance carriers want assurance the work has been performed by a knowledgeable professional company such as Empire Construction. After all once the work is complete they are still insuring you and the completed work.
What is Agreed Insurance Allowance "AIA"?:
This is the amount we have agreed with both you and the insurance company, is enough to pay for the replacement/repair of the loss claim you have filed with your insurance carrier and as outlined in the scope of work. Now we can start rebuilding!
Do I need estimates for my insurance company?:
NO well not unless you want to work for the insurance company for no pay. Here is the bottom line on this. You are not required to obtain estimates nor should you. Insurance companies as do we here at Empire Construction use a data base to formulate the actual cost of repairs. From there we as your contractor will work with the adjuster as to cost. Should there be a difference between our figures and theirs we will come to an agreement with the insurance company. Empire Construction will do the fighting for you!
When do I need an estimate?:
There is always a time when an estimate may be appropriate such as when the work is being paid for by you personally or your business. If it's being paid for by an insurance company then an estimate becomes less important.
Here is a quick check list to assist you.
(a) Select 2 or 3 reputable companies. Do not go crazy and have 4, 5 or 6 company's bidding on the same job it just doesn't work in the end.
(b) When you contact these companies tell them up front about your project and that you only are looking for a bid at this time and when you want to start your project. (Be honest with them) If you have more than one trade i.e.: roofing and paint now is the time to be sure they can handle the complete job in house and not only a part of it.
(c) This is a MUST DO supply each company with an IDENTICAL scope of work layout. You do not have to measure but by this I mean if it is a roof as an example says: I am looking for high end architectural shingles, 30 lbs. felt, ice and water shield, drip edge, and ridge vent.
(d) Remember the bids will differ but never buy on price alone. Visit with each company and assess who you feel you can work best with. This can often be more important than cost alone.
(e) Select the contractor and always let the other companies know right away you have chosen a different company and thank them for their time.
If you follow these guidelines you should have a happy outcome. Empire Construction is always open to bidding on your residential or commercial projects and welcomes your inquires.
How do I select a contractor like Empire Construction?
Here are my suggestions: First off we can put in most cases cost on the back burner unless you are paying out of pocket with no insurance involved.
The most important things to remember are as follows in this check list:
(a) Is the company from within your State?
(b) Are they licensed in your State in good standing?
(c) Are they REGISTERED with the Better Business Bureau and what is their complaint history?
(d) Can they supply three references for your review?
(e) Are they insured?
(f) Ask how they install a roof and get a written breakdown of the steps?
(g) Are they able to handle the full scope of work? i.e.: gutters, siding, paint, fascia/soffit, interior work. If not expect to go through this process again and again for each trade on your scope of work sheet. Here at Empire Construction we are a full service restoration company.
(h) Most important can you work with your project manager (sales rep.)?
If you follow these few steps you will likely come out of this happy and working with a company hoping to be like Empire Construction. We strive to be the best and feel we are, bringing you quality, integrity and security.
Will Empire Construction pay my Deductible?:
The short answer is NO! And if you are encountering companies out there and believe me there are some move on now! If a company is telling you they will pay your deductible they are lying and putting you and your family in legal jeopardy. If they are already lying to you about this ask yourself what else you are hearing that's not true about your project. Empire Construction will not participate in insurance fraud period. We pride ourselves on integrity and living up to Christian values.
What is insurance fraud?
Math 101: The replacement value of your loss is $11,000 (for a new roof)
Deduct the depreciation (age of roof @50%) $ 5,500 (ie:30 yrs. shingle installed 15 years ago)
Deduct your deductible (example) $ 1,000
The Actual cash value "ACV" then becomes $ 4,500 (amount of your first check)
This means that the money owed the contractor upon completion of all work will be as follows:
Cost of project established by contractor and insurance company is $11,000 (for a new roof)
Deduct your first check$ 4,500
Balance owed in your agreement with the insurance company is $ 6,500 i.e.: $5,500 in recoverable depreciation from the insurance company and $1,000 in deductible from you as out lined in the insurance company's "scope of work". Now your contractor bills the insurance company after completion of the work and with your approval, says we the contractor have completed all work as outlined in your scope of work, the customer agrees, and the total cost is $11,000 as we agreed in our agreement with you the insurance company. They send a check for the $5,500 and you keep the $1,000 and do not pay the contractor because you have both knowingly agreed to this. However you told the insurance company it cost $11,000 in your final billing to them as per your contract with them but omitted keeping the deductible for yourself. Soyour profit from the loss as outlined in your contract with the insurance company is $1,000. That's FRAUD plain and simple! Now if you told them I got to keep my $1,000 they will say great the cost of the job was only $10,000 not the $11,000 we thought so we the insurance company will send a check for $4,500 NOT the $5,500 and you will still be responsible for the other $1,000 (your deductible).
Empire Construction .
