| In this article, we're going to look at how the value of a | | | | inspect the damages and write an estimate. Don't just |
| property claim is determined. This could relate to your | | | | accept the estimate of the claims adjuster. |
| real estate property or your personal property, such | | | | It would be a good idea to have your contractor meet |
| as your automobile or the contents of your home. | | | | you and the adjuster at your home at the time of the |
| Before we go any further...remember this statement: | | | | inspection. That way, you can all look over the |
| THERE IS NOTHING IN YOUR POLICY THAT | | | | damage, and you, the adjuster and the contractor can |
| REQUIRES YOU TO GET MORE THAN ONE | | | | agree on the scope. |
| ESTIMATE. | | | | There should be an agreement between you, the |
| Many times, you'll hear an adjuster recommend that | | | | policyholder, the contractor, and the adjuster on the |
| you get three estimates. That's just not necessary, | | | | scope of damages. Likely, you won't have a chance to |
| and wastes your time and money. That procedure | | | | accept the adjuster's scope until he takes the |
| had everything to do with price, but has almost nothing | | | | information from his inspection back to the office and |
| to do with quality and value. Your home or your | | | | enters that information into his estimating software in |
| property is not a commodity...a mere rubber stamp of | | | | his computer. Most adjusters will be able to print a |
| every other piece of property. It should not be treated | | | | copy of the scope and send it to you. You should insist |
| like a commodity. Don't let an adjuster get away with | | | | on a written scope of damages from the adjuster. |
| this. | | | | Don't sign anything without having your attorney |
| Here's another statement to remember: | | | | review it FIRST. |
| AN ESTIMATE IS AN APPROXIMATE COST OF | | | | Adjusters are human and sometimes miss damages. |
| REPAIR OR REPLACEMENT OF PROPERTY. IT IS | | | | So do contractors. That's why there should be an |
| NOT ETCHED IN STONE. IT IS NOT A CONTRACT | | | | agreement on the scope of damages...before you |
| TO REPAIR OR REPLACE PROPERTY. | | | | ever begin discussing the cost of repairs. |
| Automobile Damage Appraisals | | | | Think about it another way. Let's say you are going to |
| If your loss is an automobile loss, and your vehicle is | | | | build a new house. Your architect would have to make |
| damaged, YOU seize the initiative and take your | | | | drawings and specifications of all of the materials that |
| vehicle to the body shop of YOUR CHOICE. It would | | | | were going to be used to build that house. When it |
| be best to have your vehicle inspected by the | | | | comes time to get bids from contractors, everyone |
| insurance company appraiser and your chosen body | | | | bidding has the same information upon which to base |
| shop appraiser at the same time. That way, they can | | | | their bid. |
| agree on the scope of damages before they start | | | | It's no different when you're getting bids and estimates |
| calculating the repair costs. | | | | in an insurance claim. |
| Read your policy. Some insurance companies actually | | | | Once you have the scope of damages, you can then |
| specify in their policy that you must take your vehicle | | | | expect to receive the estimate from your contractor |
| for repairs to the insurance companies "Approved | | | | and the adjuster. The best way to handle this is to |
| Vendor." But most policies do not. However, most | | | | insist that the contractor and adjuster reach an |
| insurance companies will try hard to direct you to their | | | | agreement on the amount of the estimate. Once that's |
| "Approved Body Shop Vendor." | | | | done, the adjuster can report to the insurance |
| Just remember this. Is the "Approved Vendor" on your | | | | company and have them pay the claim. |
| side or on the insurance company's side? Did that | | | | Contents, or Unscheduled Personal Property |
| body shop make a special deal with you to repair your | | | | Get a copy of a JC Penney catalog. Better yet, get |
| vehicle? NO! So, just who do you think that "Approved | | | | two...one Fall/Winter, one Spring/Summer. Get your |
| Vendor" is going to be loyal to? | | | | hands on as many other catalogs as you can find. As |
| The insurance companies make deals with body | | | | you look at the pages of the catalogs, you'll remember |
| shops so the repairs will get done at a reduced price. | | | | the things that you had in your home. You will find |
| That usually means cutting corners on quality and using | | | | hundreds or thousands of dollars in personal property |
| inferior aftermarket parts. You do understand that a | | | | that you likely would not have remembered owning. |
| car can look great from the outside after repairs, and | | | | Not only will you remember dozens and dozens of |
| not be the same car you had before the accident? | | | | items, but you'll have a retail price from a reputable |
| You must insist that your body shop appraiser write an | | | | retailer right at your fingertips. |
| estimate using Original Equipment Manufacturer (OEM) | | | | Please don't misunderstand what I'm telling you to do |
| parts instead of aftermarket parts. Don't give in on this | | | | here. I'm NOT telling you to write down items on your |
| point, or you'll be compromising your safety in that | | | | inventory list that you did not own. That's fraud, and |
| vehicle after it's repaired. | | | | you can go to jail for fraud. I'm simply showing you a |
| Once you have an OEM estimate from your chosen | | | | way to remind yourself of things long ago purchased, |
| body shop, you'll compare it with the insurance | | | | and possibly stored and forgotten. For example, how |
| company appraiser's estimate. You'll likely find that your | | | | many parents bought a vaporizer to run in their |
| estimate is higher in price than the insurer's estimate. | | | | children's rooms at night when the young children were |
| Negotiate from YOUR ESTIMATE, not the insurer's | | | | sick? That vaporizer might not have been used in |
| estimate. Once you've gotten agreement on the | | | | years, but you owned it, and you have a right to collect |
| scope of damages and the amount of repairs, you're | | | | for it under the terms of your policy. |
| ready to settle that part of the loss. | | | | When you have completed the Contents Inventory |
| Don't sign off on the release until the repairs are | | | | Worksheets, make copies and submit the copies to |
| completed and you have done and extensive test | | | | the claims adjuster. |
| drive and inspection of the repairs. Once you're | | | | In closing, remember this. All insurance claims adjusters |
| satisfied, then you can consider signing off. Have your | | | | and appraisers use estimating software these days. |
| attorney review the form before you sign it. | | | | This software is a vast database of materials and |
| Homeowners and Renters Appraisals | | | | labor for any kind of property. But many companies |
| In a homeowners insurance loss, in which the dwelling | | | | make a deal with the software designers to write |
| itself is damaged, the claims adjuster will inspect the | | | | software that undervalues the repair costs for the |
| dwelling for damage. He will photograph the damage | | | | property. Consequently, when the appraiser uses that |
| and take measurements. He will make notes of all of | | | | software, estimates for repair are consistently lower |
| the damaged items, and note the quality of the building | | | | than the actual costs. That's why you need your own |
| materials. He will note the cause of the damage, if it | | | | estimates. |
| can be readily determined. All of that information is | | | | Take control of your insurance claims! Add hundreds |
| commonly referred to as the "Scope of Damages." | | | | or even thousands more dollars to your claim |
| You must get a restoration contractor of your own to | | | | settlements! |