Water -Frie Damage Insurance Claim process

At TCC General Contracting Inc, we understand how traumatic an event of a water or fire damage can be. We understand how confused, stressed, and vulnerable you will feel. Our trained team will lead you through this process. TCC General Contracting Inc is a licensed General Contractor, Licensed Mold Remediation (MICRO S520), IICRC certified firm for water damage remediation and EPA Lead base paint Certificated firm. At TCC we are always furthering our education in this industry to ensure quality service to our customers.

TCC General Contracting Inc specializes in Water and Fire Damage. At TCC General Contracting Inc, unlike other Water Damage Companies, we handle the job from start to finish We do not tear out your home and walk away! We are with you the till the end.

TCC uses Xactimate this is an insurance estimate writing program. This program follows the guideline for pricing and procedure required by Insurance companies. TCC does not make up the pricing in our estimates. Xactimate and similar programs are used by adjusters in the Insurance industry to ensure that fair market values are being used. If there is a discrepancy with our estimate, please contact us or have your adjuster contacts us, the sooner we know of a difference, the better communication is essential. TCC is always willing to work with the insurance company to come to an agreement or help them understand our estimate. (If you have flooring in your loss we must have an agreed price with your insurance carrier before flooring is purchased.) Please request a copy of the repairs from your Adjuster and forward it to TCC for review this will speed up the agreement process. Please read your policy TCC does not know the policy you purchased, so we cannot advise you on what your coverages are. The best person to explain your coverage limits will be your assigned adjuster.

It is very easy to get confused on how payments are issued; the following will help you understand the claim payment process. Your insurance company will usually issue a separate check for different service that may have been performed at your dwelling. (Example; Water Mitigation, Mold Remediation, Pack-outs and Repairs services.)

Initial Process Emergency Services

In the event your home is affected by Water, Mold or Fire, below is step by step information on the process. Please make sure you read your policy to ensure all coverage limits TCC cannot guarantee coverage.

  1. Inspection– TCC will come to your property and do a preliminary inspection of the affected area. We will discuss the findings with you in detail.
  2. Insurance Claims– TCC will advise you, the insurer if there is cause to file an insurance claim. If the insurance claim is necessary, you will need to contact your Insurance Company and let them know you need to file a claim. They will at this time assign you an adjuster and set up a time to inspect the property. Please let them know you have hired TCC and we are handling your loss.
  3. Work authorization– TCC will have you sign a work authorization form. This form allows us to start work immediately.
  4. Mold-In the event there is mold TCC will advise you that you need to contact an environmentalist to do testing. TCC does not bill for testing. Please make sure your policy covers the cost of testing, or this will be an additional expense for the insured.
  5. Pre 1980 homes- If your property was built pre 1980 you must call for lead and asbestos testing this is CA, EPA law. TCC does not cover the cost of testing; please check with your Insurance Company to make sure they cover the cost.
  6. Abatements– In the event that your home is positive for lead or asbestos it must be abated before it is dried. The cost of abatement may be billed through your insurance company. Abatements will prolong the drying process.
  7. Pack Outs- Depending on the extent of the claim a pack out may be required. Tc will determine if a pack out is needed upon inspection of the loss.
  8. Tear out- TCC will mark all walls that must be removed and explain this process to you in detail. Air Movers and Dehumidifiers will be set up in affected areas. The Equipment is loud and may be bothersome to you. It is important that you leave the equipment running. This is to ensure proper drying of the structure.
  9. Drying time– Drying time varies, the minimum drying time is 3 days. Drying time depends on the percentage of moister in the affected materials and the relative humidity in the rooms. TCC will take moister readings to ensure that all porous material is dried properly, and to the dry standard for each material.
  10. Estimates- TCC will write up an estimate for the EMS at the time demo is completed. This estimate will be submitted to your insurance company for payment.
  11. Repairs- TCC is a full-service company and can handle the repairs portion of the claim. We can write the estimate and submit it to the insurance company and discuss your claim. This is a free service if you use TCC during the water mitigation portion of the claim. If you would like TCC to write your repairs but are no planning on using our company, we will do so at the cost of $500.0 or 2% if over that amount. If in the event, you would like to use TCC this amount comes on the top of the repairs, and you will not be charged for the write-up. The charge is to cover the field and clerical cost associated with deliberating a loss, in the event you do not use our company for the repairs portion of the claim.
  12. Adjusters– An insurance adjuster is a person who is assigned to your claim to go over the scope of work. It is important that you advise your Insurance Company you would like them to discuss the loss with TCC. We can make sure the job is written up correctly ensuring your property is repaired correctly. An Adjuster is not an Insurance agent. Your agent will not fully understand the claim process.
  13. Upgrades-You may choose to upgrade your home during the insurance loss process. It is important to understand that Insurance companies only pay for like kind and quality. If you choose to upgrade TCC will be more than happy to put an estimate together for you. Please Note that more work is more time and Insurance companies will not cover your food and housing expense past their agreed time frame. TCC is not responsible for any cost you incur regarding accommodation and food.

Understanding the Insurance Payment process

Mortgage Company –When checks come they may be made out to multiple parties, if the check is made out to your Mortgage Company you Please contact us we can guide you on this process. We will need third party Authorization to speak to them in regards to your claim. We will tell them you have a check from the insurance company that needs to be endorsed by them, they will instruct us on what to do next. Please let us know if you receive any documents from your Mortgage Company. You will most likely need the following items:

  1. A. A copy of the Insurance Company estimates (repairs). The contract amount must match the insurance company’s estimate in order to process.
  2. B. Contract signed by the insured and the contractor
  3. W-9 from your contractor
  4. Waiver signed by your contractor

If you have a large claim the Mortgage Company may require several inspections and will release payments in thirds as work is completed. Please contact the mortgage company for inspections as soon as you are asked to by TCC, it may take up to two weeks for them to come and inspect the repairs. It is very important to stay on top of this process especially in large claims as it affects the time frame work can be completed, due to high material cost. TCC will make every effort to have the work complete in a timely manner. Important note TCC work off progress payments. Delay in payments will delay completion of work.

Check Signatures –Once you have received the endorsed check from your mortgage company, you must also endorse the check in order for TCC to deposit it. Our name does not have to be on the check to deposit.

Recoverable & Non-Recoverable deprecation-If your Insurance Company has Retained Recoverable Depreciation you must fill out and sign the certificate of completion, return this document to TCC so we my send it to your Insurance company. This lets them know all work has been complete; they will then issue the final check. This check again may be made out to multiple parties.

Non-Recoverable-If your policy allows it your adjuster may apply, NON-Recoverable Depreciation. Meaning you cannot recover this portion, and it is your responsibility to pay on top of your deductible. Please read your Insurance policy and always ask for a copy of the adjuster’s written estimate. In your written estimate, you can find this information on the summary page or opening statement. If you do not understand the estimate, we will be happy to explain it to you. TCC does not know the policy coverage you purchased. We will make every attempt to communicate with your adjuster, but we cannot guarantee they will give us full discloser on your coverage.

Deductible- The deductible is deducted from the repairs portion of the check (meaning the insurance company does not pay this portion). It is your responsibility to pay your deductible to TCC in full at the completion of work. If you cannot pay your deductible in full at the time of completion, let us know we are happy to make payment arrangements.

Understanding Invoices-You will receive an Invoice for each portion of work done, Pack out/In, Water mitigation, mold, and repairs. Each invoice will only show the totals for that portion of work. Statements will show all Invoices payment activity. (TCC does not bill for other companies)

 

Additional information on Depreciation Recoverable and Non-Revocable

Depreciation-When determining coverage amounts and coverage costs, insurance companies consider the value of the item being insured whether it’s a home, a car or a property. When a policyholder files a claim for loss or damage, the age of the item may become a factor in terms of its present-day value. In effect, physical items depreciate in value with time, which may have a bearing on how much an insurance company pays out on a claim. Insurance policies may include conditions that reference recoverable or non-recoverable depreciation when describing coverage limits. In some instances, policy conditions regarding recoverable versus non-recoverable depreciation may mean the difference between full payment for loss or damage and no payment at all.

Policy Coverage’s-Insurance policy coverages define certain value guidelines for determining how much it will pay to repair or replace an item. A company may choose to base its value guidelines on an item’s replacement cost or on its actual cash-value. Policies that use the actual cash-value as a guideline base coverage amounts on the present-day — or pro-rated — value of an item, meaning a 5-year old, $50 end table, may only have a depreciated, actual cash value of $15. In effect, this type of guideline means policyholders may not recover the item’s depreciation costs. On the other hand, a policy that lists replacement costs as a value guideline grants policyholders some protection in terms of recoverable depreciation costs.

Claim Payment Delays-Insurance policies that list a recoverable depreciation clause may require other conditions be met before the insured can collect on a damaged item. Other requirements may include receipt documentation that verifies repairs have been made or a replacement item has been purchased. In other words, the policyholder must cover a portion of replacement or repair costs and then request reimbursement for the remaining costs from the insurance company. As a result, insurance companies may use the recoverable depreciation clause as a means for delaying full payment on a claim. These conditions prevent policyholders from pocketing the insurance money instead of applying it toward repair or replacement costs. By doing so, insurers don’t have to worry about paying on the same claim should a policyholder file again in the future.

Considerations-With non-recoverable depreciation-type policies, pro-rated values serve as the only guideline for paying on a claim. Pro-rated values may also have a bearing on policies that list recoverable depreciation guidelines. An insurance company may cover the initial costs of repairs or damages based on pro-rated values. Once the policyholder submits proof to the insurance company, the company pays out the remaining cost amount. In cases where a policyholder fails to provide the required documentation, any depreciation costs become non-recoverable.