What a Waste!
Who knew reconstructing your home after a hurricane could be so complicated. Not Nelson and Edie Benton. The last time they redecorated was almost 10 years ago. And they still had a roof over their heads then. This time, in addition to new carpets and paint, they need new floor tile and a new roof. Renovation from the bottom to the top.
The adjuster was there for days. He figured the square footage of the carpet and floor tile. He climbed up on the roof and calculated how many roof tiles they needed. He estimated the amount of paint the walls would require. And he included exactly what his years of experience told him would cover the labor on the job.
The Benton signed the adjuster's estimate, accepted a generous check and began rebuilding their lives. Sadly, their lives cost a lot more than their adjuster paid them.
Truth is, most company adjusters will not include a figure for waste factors. Yet, there is waste in every construction job. If the Benton require 100 square yards of carpet at $28.00 per yard with a waste factor of 7%, they would suffer a $196 loss. 100 square feet of floor tile at $8.90 per foot with a waste factor of 15% places them out of pocket $133.50. It took 4,200 square feet of roof tile at $4.50 per square foot to make them whole. With the waste factor of 18%, the roof cost $3,402 more than their insurance company paid.
As for labor, it costs more to paint the ceiling than a wall, but their estimate said just “paint”. And the adjuster never thought to include cost for removal of everything from lights to ceiling fans to window treatments. There are also engineering fees and building permits. Roofing? It cost more to tile a two-story house, even more three stories. Check your line estimates to make certain everything is included.
MySmartClaims.com takes waste factors into consideration when calculating your loss.
Appearance Allowances
Randy Eagleton remained home when the flaming oil ran down the side of his kitchen cabinet. He grabbed a towel and quickly snuffed out the flames. Then he sat on the floor and took a good look at the matched marble-inlaid, handsomely carved kitchen cabinets that ran length of the room. The damaged cabinet door, oil stained and singed beyond repair, ruined the look of the entire kitchen.
The adjuster agreed. “How much do you think it will cost for you to get another door like that one, Randy?” Randy didn’t know. “Well,” said the adjuster, “I’ve seen carpentry like this before and we can get pretty close to a match with the wood and the marble for about $400.” Then he gave Randy a wink. “Listen, I’ll give you an appearance allowance of the $400 plus another $400, and you don’t even have to replace the cabinet if you don’t want to.”Eight hundred bucks." Randy gave into a bit of greed and thought he got a deal. The adjuster wrote in his report to the insurance company, “We owed for the whole kitchen, approximately $30,000. Guy took $800. Happy!”
Truth is, Randy’s kitchen had matched cabinets. Under indemnification, his kitchen must be made the way it was before the damage. One replaced cabinet will never match the others. All 12 cabinets, wall treatments, back splashes - everything made with the specific lot of maple must be replaced to Randy’s satisfaction. And while the cabinets may cost $400 each, what about the cost of labor to remove and rehang each one. Of course, construction will damage the wall paint, so the room will have to be repainted. All the lights and switches will have to be removed before painting and replaced afterward. But by law, the painter can’t do that, it’s the electrician’s job. If the painter does it, it’s a misdemeanor. If Randy knows he’s doing it, it’s aiding and abetting, a felony for Randy. Why should he take the risk? Then, again, if the adjuster insists Randy should let him replace just the one cabinet. Then tell the adjuster it doesn’t look right and have them replace them all. It’s Randy’s right under indemnification. Don’t be greedy, be smart.
MySmartClaim will always use the matching principle when estimating your loss.
The Buddy System
The fire tore through Jim and Karen Dunlap’s home in a matter of minutes. The fire department arrived quickly, but the damage was still extensive. The adjuster walked the ruins, spent time pushing the buttons on his calculator and wrote up his report.
He was a nice man who talked to the Dunlap’s throughout his inspection. He got to know them; learned a bit about their family, repeatedly told them how sorry he was that this happened to them.
He took them for coffee and, over a piece of cherry pie, asked Karen, “Didn’t you say that your brother-in-law owns ABC construction? Why don’t you get an estimate from him? I bet he’ll give you a better deal than anyone else would.”
The Dunlap’s called their brother-in-law, who was happy to come by and write up an estimate. The adjuster looked over the prices and asked him, “Come on now, what do you really pay for those 2x4’s? Can’t we get the price a bit lower for your family?”
Truth is, your insurance company is not entitled to any deals. You get a lower bid from a buddy or family member; you’re just lowering the amount of money your insurance company has to pay to make you whole. That doesn’t benefit you. They should pay exactly what everybody else pays. What the Dunlap’s brother-in-law pays for his 2x4’s is none of the adjuster’s business either.
MySmartClaim ensures that the insured risk is paid for.
