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I have a sunroom, water damaged. This is a sunroom system style. Two walls and a ceiling. The carpet is damaged also. Now, when I called the ins. co. to file a claim they told me to make sure I get someone in to prevent any further damage while the claim was being processed. I did this. It is a Recovery co. They tarped it and brought in big humidifiers and fans to dry it out. This was 6.6.08. I am STILL going around with the ins co. about the amount they will pay. The recovery co. said they deal with the ins. co. from beginning to end and get the job done. They sent mfgs of sunrooms here for estimates-then faxed them to the ins. co. It came to about 28,000. I thought that may be high and figured maybe they were "padding" the estimate. After all, how do they get paid?
We called for estimates ourselves and they were coming in around $23,000. So, they were close. The ins. co. only wants to pay $15,000. Now the recovery place is saying they are going to get a public adjuster to come out. I know there is a cost to that, but they say that the PA's word is pretty much final and most ins. cos. don't like them because they run higher.
Should I drop the recovery place? Can I even do that? I am sure they want payment, but I need to get this done and I don't have the money to pay any out of my pocket.
Well, the public adjuster can go either way and then you are bound by what his decision is. He could come in and say that you only have $10,000 worth of damage and then you are stuck. Some ins co's will stick by their original estimate but not all.
Keep in mind that the contractors have a financial interest in you getting the most ins money possible. Adjusters get paid on a percentage of their claim amount so they want to give you as much as possible. It is a rock/hard place for a homeowner though.
One thing to keep in mind is that if you rebuild to what you have and it is more then the $15,000--without some contractor jacking up the price on you--the insurance company will reevaluate their assessment, usually.
How many bids did you get? If you only got one from the same company that might not be a fair assessment of the cost.
Well, the public adjuster can go either way and then you are bound by what his decision is. He could come in and say that you only have $10,000 worth of damage and then you are stuck. Some ins co's will stick by their original estimate but not all.
Keep in mind that the contractors have a financial interest in you getting the most ins money possible. Adjusters get paid on a percentage of their claim amount so they want to give you as much as possible. It is a rock/hard place for a homeowner though.
One thing to keep in mind is that if you rebuild to what you have and it is more then the $15,000--without some contractor jacking up the price on you--the insurance company will reevaluate their assessment, usually.
How many bids did you get? If you only got one from the same company that might not be a fair assessment of the cost.
First off, getting a public adjuster or PA does not mean you will get anymore money. You could still get the same amount minus the PA fee (this is usually a % of the claim). The PA fee is not recoverable from the insurance company so keep that in mind.
Adjusters (insurance-staff) do not get paid based in the amount of the claim. They get paid a salary. It is not in the interest of the adjuster to under or over pay the claim. It is their JOB to pay the appropriate and reasonable amount of the claim.
Sunrooms (I assume we are talking a 3 or 4 season room) are dictated by the manufacturer and often seem inflated in cost. I would ask to speak to the adjusters manager and explain the situation and offer to send the 2 estimates you have.
It is in your best interest to try and settle this yourself as the other options you have stated are going to cost you out of your claim settlement.
Just one more question. When you say the insurance company only wants to pay you $15K, is that before or after depreciation?
First off, getting a public adjuster or PA does not mean you will get anymore money. You could still get the same amount minus the PA fee (this is usually a % of the claim). The PA fee is not recoverable from the insurance company so keep that in mind.
Adjusters (insurance-staff) do not get paid based in the amount of the claim. They get paid a salary. It is not in the interest of the adjuster to under or over pay the claim. It is their JOB to pay the appropriate and reasonable amount of the claim.
Sunrooms (I assume we are talking a 3 or 4 season room) are dictated by the manufacturer and often seem inflated in cost. I would ask to speak to the adjusters manager and explain the situation and offer to send the 2 estimates you have.
It is in your best interest to try and settle this yourself as the other options you have stated are going to cost you out of your claim settlement.
Just one more question. When you say the insurance company only wants to pay you $15K, is that before or after depreciation?
You are right, I guess I was thinking more in terms of contracted adjusters, not staff adjusters. Even staff adjusters will want to pay out at the highest rate possible since it is in the best interest of the company that you FIX what is wrong so it doesn't cause more damage in the future.
Btn our estimates and the recovery cos. estimates we got 6. He got 3 and we got 3.
As far as the depreciation goes, I believe that this amount is after. (not 100% sure, should that be on the ppw with the amounts listed from the ins. co.?) What they say is that they will pay $13,000. up front and then after the job is done they will pay the rest. I do understand that-it is the replacement cost and they want to make sure they if they are paying replacement that we actually replaced it.
Here's where it is right now (I don't think I am explaining this well)
Lowest estimate: around $23,000. (I think we could talk them a little lower because they want the job, maybe $21, 000.)
Recovery co. sends to my ins. co. an estimate for $28,000. (I am sure this includes their overhead and profit)
Insurance co. agrees to $15,000. and says that we can go after any extra costs after the work is done. They may or may not approve.
My question: If we choose the lowest estimate and hire the co. for $23,000., this would cut out the recovery co. I am wondering if that co. can go after us for their part. They have already been paid by the ins. co. for coming out and tarping and such. After that, it has only been phone calls to the ins. co. and to mfgs of sunrooms for estimates.
Here half the summer is gone and I have not been able to enjoy my sunroom due to all this going back and forth stuff. On top of that, I am moving in a month and my daughter will be staying here (we don't want to sell our home, probably couldn't in this market anyway) and I wanted this taken care of before that. It is not looking good.
Btn our estimates and the recovery cos. estimates we got 6. He got 3 and we got 3.
As far as the depreciation goes, I believe that this amount is after. (not 100% sure, should that be on the ppw with the amounts listed from the ins. co.?) What they say is that they will pay $13,000. up front and then after the job is done they will pay the rest. I do understand that-it is the replacement cost and they want to make sure they if they are paying replacement that we actually replaced it.
Here's where it is right now (I don't think I am explaining this well)
Lowest estimate: around $23,000. (I think we could talk them a little lower because they want the job, maybe $21, 000.)
Recovery co. sends to my ins. co. an estimate for $28,000. (I am sure this includes their overhead and profit)
Insurance co. agrees to $15,000. and says that we can go after any extra costs after the work is done. They may or may not approve.
My question: If we choose the lowest estimate and hire the co. for $23,000., this would cut out the recovery co. I am wondering if that co. can go after us for their part. They have already been paid by the ins. co. for coming out and tarping and such. After that, it has only been phone calls to the ins. co. and to mfgs of sunrooms for estimates.
Here half the summer is gone and I have not been able to enjoy my sunroom due to all this going back and forth stuff. On top of that, I am moving in a month and my daughter will be staying here (we don't want to sell our home, probably couldn't in this market anyway) and I wanted this taken care of before that. It is not looking good.
I would suggest that you not start any work until you have agreed with your insurance company on the total cost. If you read in the paperwork from them somewhere if should say, if you get an estimate higher than this, call us before you make the repairs.
As for the contractor, since you are doing all the work, I would pay them for what they have done so far and take care of the rest yourself as they are going to use a 3rd party anyway.
I have dealt with this before. The insurance adjuster should give you a claims adjustment that shows both the apreciated amount and the replaceamnt amount and a breakdown on each item to be done.Usually a contractor will come in get a copy and then file a estimate on the work and any more that not on the adjusters claim they feel is needed. The insurance comapny may sent a specailty adjuster to examine what the contractor has pointed out is missing in their adjustment. If they don't approve the work in the adjustment you are taking a chance with the final insurance payment.Make sure the insurance agrees to the final amount if it much different or be prepared to lose that amount.There should be n problem of the insurance company paying a fair fee to teh recovery comapny really;separate for the damage claim.They can work that out between them, Usually the only difference between the amount the insurance comapny will pay for specified work is for materails claims after the claim is fanlly settled or any that is found as the workk progress. But they must examine and approve even then to pay.
Spoke to the recovery co. today and they want to bring an appraisor in. Said it will cost a little but then they can duke it out with the ins. co. He feels the appraisor will ask for more than the lowest estimate.
The lowest est. did not include carpet replacement either.
Spoke to the recovery co. today and they want to bring an appraisor in. Said it will cost a little but then they can duke it out with the ins. co. He feels the appraisor will ask for more than the lowest estimate.
The lowest est. did not include carpet replacement either.
Again, I suggest that you deal with this yourself. Call and speak to the MGR. If you go to appraisal, it is binding. You get what you get and that is the end of it. Appraisal takes a much longer time as well. You get an appraiser, the insurance company gets and appraiser and you meet with an umpire.
This is usually done at the point where you have exhausted all of your other options (usually instead of suing). I urge you to educate yourself about your policy.
I would not ever let a contractor take these types of steps on my behalf. It does not appear that they are looking out for your best interest, but their own. Trust me, try and work it out with the insurance company.
I am afraid that the recovery co. will try to come after me for what they think they are owed for making some phone calls and "working" for us. I know they sent a bill to the ins. co. for the initial things they did. Ins. co. was to issue them 1/2 and then we were supposed to give them our deductible.
I think you are right here. I guess I really don't understand what the appraiser is going to do as opposed to anyone else. Do they have special pull? I am so confused and I am doing this on my own as my husband is out of town. Ugh.
Thanks so much for your advice! I am going to speak to my husband about it and hopefully just get this thing started.
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