McAllen Tx Remodeling Company, Rhino Tuff Roofing, Discusses Recovering Depreciation
Being hit with a huge claim is rare, but it happens to a great many homeowners. Trees falling on homes, flooding, wind storms, fire and any number of things can happen to a home at a given time. Homeowners insurance and its various addendum’s are designed to give you peace of mind that you’re covered should something extreme happen to your home.
The Claims Process
When you need to put your homeowners insurance to good use, you’ll want to have as much documentation as possible. Take pictures and videos of affected areas. If you thought to have pictures and videos from before the incident, be sure you present those along with your new photographs of the damage to the insurance agent. You’ll want to make a full accounting of all expenses associated with the problem. If your home is not habitable, for example, your insurance should cover all or at least part of the cost to rent other housing while repairs are underway.
A claims representative from the company will come out to inspect the damage. He’ll pull everything together in a packet and submit it to the insurance company. After the wheels of the company turn for a bit, you’ll get a check in the mail to cover the damages less your deductible and less depreciation. It is the depreciation that can cause concern for many homeowners.
A recent change to homeowners insurance policies allows the insurance company to hold some of the funds back until the projects are complete. Usually companies do this only on very large dollar amounts to protect themselves as well as the homeowner. Recoverable depreciation is a sum of money that you won’t get until the job is complete. It is a cushion to help determine the exact amount of the repairs and to make you whole again. Insurance is not provided to be a source of additional income. It should pay for your necessary repairs and replacements and not leave you thousands to spend on your own.
Insurance companies make this work by releasing about 60% of the funds to you upfront. That should be enough to buy supplies and to put a deposit down on the contractor you’re using for repairs. As the work progresses, you’re continuing to document all expenses throughout the process. In some cases, your contractor will be helping to compile all the receipts and numbers and working with your insurance company on your behalf. When the job is complete, you’ll be ready to recover the depreciation.
Some depreciation is not recoverable, such as an old wooden fence that was blown down, but most depreciation is recoverable to an extent. When the job is finished, you’ll submit all receipts, invoices and dates for the project to your insurance company. They will tally it up and inspect your property to be sure that the job is complete. Then, a final check will be cut to cover the exact costs for the project based on the receipts and invoices. IF the repairs total less than the insurance companies original estimate they will not release the full amount of the depreciation. So it benefits homeowners more to allow the contractor to work with the insurance summary to put all the money back into your home.
You can recover up to the full amount of the withheld depreciation. While annoying at times, holding back the funds lets the insurance company keep tabs on how the money is being spent and reduce insurance fraud. It also protects homeowners. Contractors will have a strong incentive to finish the job they start because they have to in order to finish getting paid.
McAllen Tx Remodeling Company, President of Rhino Tuff Roofing, Bret Hannah, is a licensed contractor that has been in the business since 1995. Rhino Tuff Roofing is an approved contractor for all insurance companies.