PRICE VS. COST: There is a Difference

Thank you for allowing us to professionally inspect and evaluate your home.

Insurance, by law, must pay fair market value to restore your home to the original state of your dwelling 24 hours prior to the storm damage by using the same or similar materials for the restoration. Unfortunately, many homeowners allow the insurance companies to save additional monies out of fear over potential premium increases. Insurance companies cannot single out a policyholder and only raise their rates. In fact, if the insurance company raises the rates, it will affect everyone insured based on a shared principle or “pooling” as they like to call it.

It is incredibly difficult and illegal for a contractor or a homeowner to profit from an insurance company. The insurance companies have developed a complex system that must be adhered to. The most important aspect to consider is your property being restored to as good or even better condition than before the catastrophe. In order for this to happen, it is imperative to have YOUR CLAIM adjusted PROPERLY.

Many contractors claim to be “Storm damage experts”, “Insurance claim experts”, and the like; however, their sales representatives are generally hired off the street, trained for a few days, and turned loose. When companies use these terms in their advertisements, it should warn you of the dangers these companies can have on your claim. These catch phrases are code for professional stormers or the fly by night companies to recognize each other. These are the companies your insurance companies warn you about.

If the insurance has paid low on your claim, it is imperative to have a professional interact with the adjuster, otherwise, you get a contractor who is willing to cut corners in order to bid low enough to win your contract. Remember a good roof is not cheap, and a cheap roof is not good.

In most cases, the price you pay will be exactly the same whether you use a reputable contractor or a fly by night contractor to perform the necessary repairs, and the cost will be your deductible. Insurance companies hold part of your money back to ensure you pay your agreed deductible amount for the repairs. This is called depreciation.

The insurance industry has worked for years to perfect a system that minimizes their expenses and prevents homeowners from profiting off the proceeds they pay out. Normally, the insurance company will pay you around 65% of the total claim up front and hold back the balance to ensure the work is completed. If you choose not to complete the repairs properly, they simply keep the amount they held back and will not cover future damage specific to this claim/area. If you do choose to have the repairs made and the TOTAL COST equals what the insurance has allowed, they will release the full amount (depreciation) less your deductible; however, if the TOTAL COST is LESS than the insurance allowed the insurance company will release only what is necessary to reach the lesser total amount and still hold out your original deductible. In other words, if you hire a contractor to do the job for less than the insurance company has allotted (usually by cutting corners/quality), the insurance company will just pocket the difference leaving you with sub-quality work and still paying your original deductible. Who actually loses in this scenario? That is correct! The homeowner loses by paying the exact same amount (deductible) for sub-par workmanship and allowing the insurance company to pocket the excess all while raising everyone’s premium at the end of the catastrophe. BEWARE of contractors that promise you money left over. This is insurance fraud and constitutes a felony offense. At D&C Premier Exteriors, we absolutely will not compromise our integrity. It’s in our motto.