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Experiencing property damage to your home or business can be very stressful. Whether it’s from water, fire, storms, or other unexpected events, understanding how your insurance policy works is a crucial step in the recovery and restoration process. At APR Restoration, in addition to our restoration expertise, our claims adjusters on staff have over 50 years of combined property claims experience. This foundation of professional knowledge allows APR to educate homeowners about the insurance process, ensuring a smoother path to getting their property back to normal. This post will explain the fundamental role of insurance in covering property damage and highlight key insurance terms you should be familiar with.
Homeowners insurance is designed to provide financial protection against various risks that can damage your property. When property damage occurs, your insurance policy is there to help cover the costs of repairing or replacing damaged structures and personal belongings. However, not all insurance policies are created equal; they vary in form and coverage levels, ranging from “All Risk” to “Named Peril.” All Risk policies typically cover most sudden and accidental damage, subject to specific exclusions. In contrast, Named Peril policies provide coverage only for specific causes of loss such as water damage, fire and smoke damage, storm and flood damage, and/or lightning to name a few examples. When damage occurs due to a covered peril, it is generally considered a “Covered Loss”.
Given the complexities involved, navigating the intricacies of an insurance claim can sometimes feel complex. It’s important to understand what your policy covers and how the claims process typically works. Don’t hesitate to reach out to your insurance agent to fully understand your policy’s coverage before and after any damage occurs.
This is the amount of money you, the policyholder, are responsible for paying out-of-pocket before your insurance coverage kicks in. For example, if you have a $1,000 deductible and your repair costs are $5,000, your insurance company would typically cover $4,000. It’s wise to review your deductible with your insurance agent periodically. It’s common practice for homeowners to consider whether the total cost of repairs is near or less than their deductible before filing a claim.
ACV represents the current market value of your damaged property. It is calculated by taking the Replacement Cost Value (RCV) (the cost of replacing an item with a new one) and subtracting depreciation (the decrease in value due to age, wear, and tear).
RCV is the cost to replace damaged property with new items of similar kind and quality, without deducting for depreciation. Many homeowners opt for policies with RCV coverage for better protection.
Understanding whether your policy provides ACV or RCV coverage is vital, as it significantly impacts the amount you may receive for your claim, particularly for personal property. If you are unsure about your coverage types, a call to your insurance agent can provide clarity.
Insurance plays a fundamental role throughout the entire property restoration process. Here’s how:
Insurance provides the necessary funds to cover the often substantial costs of emergency response, mitigation, repairs, and reconstruction. Without insurance, homeowners would bear the full financial burden of restoring their property.
Restoration companies often work directly with insurance companies to provide detailed documentation, including scopes of work, photos, and reports, to support your claim. This collaboration helps ensure all necessary repairs are identified and covered. Encourage your restoration company to communicate proactively with your claims adjuster.
If your property has a mortgage, your mortgage company will likely be involved in the insurance claim process. They often require documentation to ensure the repairs restore the property’s value and protect their investment. Insurance payouts may be jointly issued to you and your mortgage company to ensure funds are used for restoration. APR Restoration can assist in providing the necessary documentation to both your insurance provider and mortgage company. Keep your insurance adjuster informed about any communication or requirements from your mortgage company to prevent delays.
To further clarify the role of insurance in property claims, here are some common questions homeowners often have:
💡: Your first priority should be safety. Once it’s safe, take reasonable steps to protect your property from further damage, such as contacting a plumber to repair a pipe that continues to leak or covering a damaged roof to minimize more water from entering the structure. If damage is extensive, now may be a good time to contact your insurance carrier to explore filing a claim. If damage is minimal, you may want to investigate further before filing a claim. Regardless of the extent of damage, document the situation with photos and videos if possible. Then, contact a trusted restoration company like APR Restoration for emergency response, if needed, and damage assessment.
💡: After you file a claim, your insurance company will assign a claims adjuster to assess the damage. They will review your policy to determine if the loss is covered and estimate the cost of repairs. Maintain open communication with your claims adjuster and promptly respond to any requests for information. It’s beneficial to have your own detailed assessment from a restoration professional to compare and ensure all damage is accounted for. The insurance company may then issue payment, typically less your deductible. For larger claims, payments may be disbursed in stages as repairs are completed.
💡: Restoration companies that have experience working with insurance companies can streamline the claims process for you . They understand the documentation. and reporting requirements of insurance providers and can communicate directly with adjusters on your behalf. This expertise can help ensure a more efficient and less stressful restoration process.
💡: If you disagree with your insurance adjuster’s assessment, it’s important to communicate your concerns clearly and provide any additional documentation you may have, such as your restoration company’s estimate. Don’t hesitate to discuss your concerns directly with your claims adjuster and seek clarification on their assessment. You can also review your policy for details on dispute resolution processes, which may include appraisal or mediation . If needed, you can also reach out to your insurance agent for assistance in understanding your options.
💡: Filing a claim can potentially impact your future insurance premiums, although the effect varies depending on your insurance company, your claims history, and the type of claim. It’s a good idea to discuss potential rate implications with your insurance agent before filing a claim if you are uncertain.
At APR Restoration, we have extensive experience working closely with leading insurance companies to assist our clients with the documentation required to clearly understand the scope and cost of returning a property to pre-loss condition. Our goal is to make the restoration process as smooth and stress-free as possible through clear, consistent communication and a quick and efficient repair process. We provide comprehensive documentation, including detailed repair estimates, detailed sketches of the affected area, and 3-D photo documentation. We also communicate directly with your insurance adjuster to ensure a clear understanding of the necessary repairs and to facilitate the approval process.
Understanding the role of insurance in residential property claims is essential for homeowners facing property damage. By familiarizing yourself with your policy and key insurance terms, and by maintaining open communication with your insurance agent and claims adjuster, you can navigate the restoration journey with greater confidence. Working with experienced professionals who understand the claims process, like APR Restoration, can further simplify this process. APR Restoration is your trusted partner in Central and Eastern North Carolina, ready to provide expert restoration services and assist you in working effectively with your insurance provider to get your home back to normal, faster.
📞 Need help now? Call us at (877) 942-7762.
APR Restoration & Commercial Development is your trusted choice for water, fire and storm damage restoration, reconstruction and repairs in Raleigh, Fuquay Varina, Cary, Apex, Wilmington, Jacksonville and all across Central and Coastal North Carolina.