Insurance
Replacement Cost, on the other hand, covers the full cost to replace your roof with a new one of similar kind and quality, without deducting for depreciation. This means if your roof needs to be replaced, the insurance payout would cover the entire cost to restore it to its original condition.
When faced with property damage, it’s crucial to take the right steps to ensure you receive the most accurate assessment and compensation for repairs. Before reaching out to your insurance company, consider contacting Goad Construction first.
Here’s why:
One of the primary reasons to call Goad Construction before your insurance provider is to obtain a precise and unbiased evaluation of the damage. Our team of experts is well-versed in identifying and documenting all aspects of property damage, ensuring nothing is overlooked. This initial assessment can be invaluable when it comes time to discuss claims with your insurance adjuster.
A significant advantage of contacting Goad Construction first is that our assessment and report come at no COST to you. This free service allows you to benefit from expert insights without any financial burden, giving you peace of mind during a stressful situation.
Contacting us first will prevent the insurance company from denying your claim. Goad Construction will give you a fair and objective home or business inspection. An adjuster represents the insurance company, but we represent YOU! Goad Construction can be there when you meet with the adjuster. Any questions can be directed to us, and we can answer them intelligently. We can confirm that the damage was caused by the disaster and was not pre-existing.
1. Obtain a cheap bid from some “Chuck-In-A-Truck” that is willing to repair your home or business for less than what the insurance is paying.
2. Create a bidding war between the contractors so they lower their prices below market rates to win your business.
In either case, the price reduction benefit only goes to the insurance company. Your insurance company will only pay for what the contractor charges and will not pay you the difference.
Insurance Information
Furthermore, low estimates encourage contractors to cut corners. Any contractor that is willing to accept a below market payment must cut corners somewhere to survive. Unfortunately for you, this may be that the contractor is: using poor materials, or the required materials.
What is Replacement Cost?
ACV vs. RCV: Understanding the Difference
Another tactic used by some insurance companies to save money, is their insistence that you use their "Preferred Contractor". Insurance companies want you to use their Preferred Contractor because they have cut a deal with the contractor to accept very low margins in exchange for guaranteed work. Thus, these contractors are motivated to cut costs by cutting corners on the work that they do for home or business owners. Regardless of what your insurance company insists, you have the legal right to choose the contractor you want on your home or business.
Actual Cash Value is the amount your insurance company would pay to replace your roof, minus depreciation. Depreciation accounts for the age and condition of your roof at the time of the loss. For example, if your roof is 15 years old and has a lifespan of 20 years, the insurance company might consider it 80% depreciated. This means if your roof originally cost $10,000, the ACV would be $2,000, assuming no other factors are involved.
What is Actual Cash Value?
The disadvantages of a ACV policy: In the event of a claim, you have to pay a significant portion of the replacement cost yourself. Less coverage: ACV doesn’t cover the full cost to replace your roof, which can be a financial burden.
Goad Construction recommends policyholders opt for RCV coverage when possible, as it offers more comprehensive protection and financial security.
Insurance Cancellation Due to Roof Condition
The condition of your property, particularly your roof, plays a significant role in maintaining your insurance policy. Insurers may cancel or refuse to renew a policy if a roof is deemed to be in poor condition. Here’s a closer look at some of the most common reasons why an insurer could cancel or decide not to renew your policy:
When unexpected property damage occurs, it can be an overwhelming experience. Not only must you deal with the emotional stress of the situation, but you also face the daunting task of navigating the complexities of insurance claims to ensure you receive the compensation you deserve. That's where Goad Construction comes in. Our team of experts is here to assist you every step of the way.
If the insurance company already knows the market value of fixing or replacing damage to your home or business, then why would they suggest, or in some cases insist, that you get multiple bids? It’s because the insurance company wants to manipulate you into either:
Property insurance is an essential safeguard for protecting your home or business from unforeseen damages. However, the complexities of insurance claims can often be overwhelming. In this article, Goad Construction will guide you through key aspects of property insurance, including the pitfalls of obtaining multiple bids, understanding the differences between Actual Cash Value (ACV) and Replacement Cost Value (RCV), the advantages and disadvantages of Class 4 Impact Resistant shingles, and how the condition of your property affects your insurance policy.
The Drawback of Multiple Bids
With most property owners insurance policies your insurance company is responsible for paying the entire cost of repairing your home or business after you pay your deductible. Thus, your insurance company has a strong motivation to minimize their costs. Some insurance firms will go to great lengths to delay or deny claims or use other questionable tactics to save money.
Insurance companies have deep pockets and they pay lobbyist a tremendous amount of money to influence government officials to protect their interests rather than the interest of home or business owners.
Insurance Preferred Contractor
Class 4 Shingles
Learn about the advantages and disadvantages of Class 4 impact resistant shingles here
Improper Materials
Use newer roof materials when repairing your roof. Insurance companies often consider roofs made with outdated or unsafe materials as higher risk and are less likely to cover them.
A home insurance company may hesitate to renew your policy if your roof is decades old and looks worn out.
Age
Current damage
Insurers may deem roofs that are already cracked or missing shingles as high-risk or not insurable.
Stay on top of roof repairs to keep it in working order (and keep your policy active). Routine maintenance, like cleaning your gutters, is also important.
Poor Maintenance
Disadvantages of Handling Your Own Property Damage Claim
Navigating the aftermath of a disaster can be daunting, and deciding to handle your own property damage claim instead of hiring a professional can come with several disadvantages. Here are some potential challenges you might face:
When you handle your claim independently, you may lack the necessary expertise to navigate the complexities of the insurance process. Managing a property damage claim on your own can be incredibly time-consuming. From documenting damage and gathering evidence to negotiating with insurance adjusters, each step requires significant attention to detail and follow-up. This can be overwhelming, especially when you are also dealing with the stress and disruption caused by the storm.
Without professional guidance, there's a risk of undervaluing your claim. You might overlook certain damages or fail to account for all the costs associated with repairs and recovery. Handling a property damage claim involves a lot of interaction with insurance companies, which can be stressful and frustrating. While it might seem cost-effective to handle your own claim, the financial implications of potential mistakes, undervaluation, or prolonged negotiations can be significant.
The Owner of this Home was Paid $500 Total!
Goad Construction assisted this homeowner with a re-inspect from his insurance company. The new adjuster that came out, made the comment "the other adjuster must have been Ray Charles!" The new adjuster paid him $130,000 to have his home repaired. So don't think you can handle the claim on your own.
By following these guidelines, Goad Construction ensures property owners are well-prepared to navigate the complexities of property insurance and maintain their coverage effectively. Remember, staying informed and proactive is key to protecting your property investment.
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