Home Insurance Turn Down Avoident (rental, house, repairs, landlord)

[alanhuro]

Hello All

I have a few questions about our rental Home Insurance. Three years ago one of our rental house had a major water leak that required our insurance to pay out 25,000 to fix it. Just in October of this year we have a major wind and hail damage to the roof. The damage also caused a leak on a roof that required some repair on the ceiling in some rooms upstairs. We have a contractor and they estimate the repairs for close to 27K. The adjuster sent by insurance only pay 13K. Our contractor told us that they have their own lawyer team to make sure the insurance will cover up to 27K. The questions I would like to ask are

1. Should I have a contractor to represent us to work directly with insurance to make sure all the damages get repair?

2. If there are two much claims or the cost on claim too high on this rental house does it affects the future renewal? Is it adding more risk of getting turn down from renewal or buying insurance for this house in future?

3. Will this increase our home insurance premium?

Thanks in advance for your answer and which you have a blessed Christmas and enjoys your holidays

[El Chingaso]

Yes. Your premiums will go up.

Yes. Your contractor can work with the insurance company, as could a public adjuster. I would question why the contractor has attorneys on file, unless they’re padding all estimates.

Yes. You can get non-renewed.

[adjusterjack]

Originally Posted by alanhuro

Just in October of this year we have a major wind and hail damage to the roof. The damage also caused a leak on a roof that required some repair on the ceiling in some rooms upstairs. We have a contractor and they estimate the repairs for close to 27K. The adjuster sent by insurance only pay 13K. Our contractor told us that they have their own lawyer team to make sure the insurance will cover up to 27K.

I am a retired property claims adjuster.


1 - Any contractor that has their own lawyer team is probably a scammer and you should get estimates from a couple of other contractors. In fact there will be contractors who will do the work for the amount that the insurance company comes up with because many insurance companies use prevailing rates for labor and materials and many contractors use the same estimating software as the insurance companeis. Don't hesitate to give your insurance company's estimate to the next contractor or two and see what they come up with. As a homeowner I have dealt with contractors for over 40 years and know that, from contractor to contractor, prices can be astronomically different.


2 - Are you misunderstanding about your insurance company's damage estimate? For a claim that size, if you have Replacement Cost coverage, insurance company's often deduct depreciation from the initial payment and pay the balance when the work is completed.


If you click on "go advanced" you'll see that you can upload the insurance company's estimate and the contractor's estimate and I can give you some idea of which one is more realistic. Maybe include a picture of your house so I can relate it to the estimates.

Originally Posted by alanhuro

1. Should I have a contractor to represent us to work directly with insurance to make sure all the damages get repair?

Like I said, get a couple of more estimates and work with your insurance company.

Originally Posted by alanhuro

2. If there are two much claims or the cost on claim too high on this rental house does it affects the future renewal? Is it adding more risk of getting turn down from renewal or buying insurance for this house in future?

3. Will this increase our home insurance premium?

Yes to both. Claims always effect rates and available of coverage. It's a fact of life. That shouldn't stop you from making claims, especially big ones. Stop worrying about that and worry more about getting your house fixed.

[tracyloothes]

You might need Sydney depreciation schedule to know about property insurances. It is important to ask this with your landlord and if there are payments you need to do.