Step 3

How your project is funded:

Approximately one week after you file our claim and the insurance adjuster assesses the damage to your property, you will receive a check that represents the actual cost to repair or replace the damaged property, less depreciation and your deductible. The age and condition of the property is taken into account when the depreciation is calculated. After the project is complete and we send an invoice to the insurance company check will be issued that will cover the depreciation. The property owner pays the deductible at the beginning of the project. The deductible represents the property owner's payable portion of the loss. An example of this payment schedule is shown below.

Example:

$21,000 Adjusted Property Loss 9,000 Recoverable Depreciation 12,000 Actual Cash Value (ACV) 500 Deductible (varies with policy) 11,500 (First Check issued by Insurance Company)

The first check issued ($11,500 in the example) can be presented as the material drop payment to the contractor of your choice. this will enable the contractor to order materials, set a production date, and complete your project.

When the project is finished the property owner signs a certification of completion and satisfaction (supplied by the contractor), this certificate is then sent to the insurance company. At this time the insurance company will issue a second check to the property owner for final payment. This check will include the recoverable depreciation ($9,000 in the example) and may also include additional monies for approved supplements and contractor's overhead and profit if applicable. The property owner's will receive confirmation from the insurance company and the contractor of any additionally approved items.

By following this process it helps minimize paperwork and confusion for the property owner and the contractor.