A tree fell on our house during Hurricane Helene, causing a lot of damage, and we got hurt too. We did everything we could to minimize further damage. The insurance adjuster was very thorough and gave us a pretty generous repair estimate.
Our policy covers replacement costs, but he mentioned that some of the depreciation costs would be withheld until the repairs are done.
I’m a bit lost here. Are we supposed to send estimates for each repair—like the floor, roof, vents, ceiling—and then he sends a check? And once we get the work done, do we need to send another receipt to get paid?
What if we can’t replace the floor right away because we can’t find someone to do it or we’re busy with other repairs? Will they still send a check for the floor, or do we have to show a receipt for the work to get paid?
Sorry if these questions seem basic; we’ve never dealt with anything like this before. Honestly, we’re just thankful to be okay. TIA for any help.
For this kind of claim, you’d usually get a contractor to give an estimate for all the repairs. Once your claims adjuster gets that and approves it, they’ll send you a check for the depreciated amount. After you finish the repairs, you send the final bills, and they’ll pay the rest up to the limits on your policy.
Don’t be surprised if there’s some back-and-forth between your contractor and the claims person about the price. And sometimes the check is made out to you, the contractor, and your mortgage company if you’ve got a loan. If the damage goes above a certain amount, the mortgage company has to be included too. Just make sure you use the money to fix the house—heard stories of folks paying down their mortgage with it instead, and that’s not the best idea.
So, should we be expecting the first check to cover everything, or is that why we need to send the final bills to the adjuster later on?
One thing he said that stuck with me was something like, ‘If the roof costs less than the estimate, that’s none of my business. But if it’s more, you send the receipt, and I’ll issue another check.’ Does that mean if we save a bit on the roof repair, we can use that leftover money for something else, like cleaning the chimney?
And what happens if we can’t fix the floor right away? Will the money just be held somewhere, or does the mortgage lender get a say in when and how we make repairs?
How long does this process usually take? Trying to prepare ourselves mentally for it.
@Ezra
Usually, with big jobs, they don’t pay it all at once. It’s often in parts, like a third at a time, with the last bit paid out when everything’s done. Depending on how much work there is, the adjuster might release funds as each part gets completed. Then, when it’s all finished, signed off, and you send in the final invoices, they reconcile and pay the rest.
If they send out one big ‘partial’ check early on, and your mortgage company is on it, they might make you set up an escrow account. You’d then pull money from there to pay the contractor as needed. Sometimes, though, they’ll just sign the check over and let you handle it.
With all the factors—contractor schedules, supply chain, permits—it could easily take six months or more to get everything wrapped up.
I work in this field a lot. Not in your area, but close enough.
I’ve heard good things about Jo Lynn for mitigation out your way. I can give you another name for the rebuild if you want, just send a message.
Honestly, unless you work in construction, it’s hard to judge whether the estimate is really generous. No offense. Mitigation crews will come out, demo what they need to, and dry out the place. They usually have their own people for this stuff, and they’re good at negotiating the costs. You shouldn’t have to pay more than your deductible unless you decide to upgrade something.
For the actual rebuilding, it should work similarly. Getting a bunch of quotes is often a waste of time because contractors just tell you to come back when you have the funds. If costs go up, that’s on you.
@Wynne
Fair enough, I’ll admit I’m not sure if it’s generous, but it seemed thorough, so I’ll take that as a positive sign.
We actually handled the mitigation ourselves, so we’re not looking to hire anyone for that.
Thanks for offering to connect me with a general contractor. I talked to one earlier today who seems promising—they came recommended by a close friend who’s also in construction but can’t take on this job right now.
We’re not planning to shop around for quotes, but we’ll definitely need estimates for the insurance adjuster.
@Wynne
Yeah, we took care of a lot: got the tree off the roof the same day, covered up the holes, cleared out debris, covered the broken window, took out all the wet insulation, and got some industrial fans and dehumidifiers running (we had no power, so we used a generator). We wanted to make sure nothing turned to mold, especially since we live here with our kids.
To us, it was worth it to keep our home safe, but I didn’t realize that might mean we could get some compensation. They did give us $1500 for the tree removal, though.