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Working with Insurance Claims

Have you recently filed a claim with your insurance company due to a catastrophic event in your home, such as fire, water, or storm damage?

We’ve got you covered! With years of experience in water, mold, fire, and storm damage claims, we can guide you through the process and help you determine whether filing a claim is the right move.

Below is a brief outline of the steps to expect once a claim has been filed:

Please read!

Helpful Tips & Knowledge

Step 1: Addressing the Source

Has the source of the damage been stopped?

  • For fires: This typically means the fire department has cleared the scene.
  • For water damage: The source of the leak must be repaired or controlled so that it’s no longer active.

Step 2: Emergency Services

The specific services needed will depend on the type of loss. These may include:

  • Board-up, tarping, or debris cleanup
  • Hazardous material testing
  • Water or fire damage mitigation
  • Mold remediation

We can assist you with these services. For anything we don’t handle in-house, we’ll connect you with reputable companies that can help.

Step 3: Insurance Inspection

Once a claims adjuster is assigned, they’ll schedule an inspection. Sometimes, this may involve a third-party independent adjuster hired by your insurance company. Their job is to document the damages and estimate the costs to restore your home to its pre-loss condition.

Step 4: Lovrovich Construction Inspection

Steps 3 and 4 can occur simultaneously. Whether your contractor inspects before or after the insurance adjuster doesn’t matter, but scheduling both inspections together is often ideal. This ensures everyone is on the same page regarding scope, timeline, and costs. Corey and Taylor bring years of experience working with insurance companies to achieve successful outcomes for clients. Communication is key!

Step 5: Free Bid

Lovrovich Construction will provide a no-cost initial bid for the repairs needed in your space.

Important Note:
Insurance claims often require discussions and negotiations between contractors and adjusters. For this reason, it’s critical to choose a contractor with technical expertise, strong communication skills, and experience handling insurance claims.

  • We’ll work closely with your adjuster and you to ensure agreement on scope and price.
  • After providing the initial bid, we require a signed work authorization before proceeding further.
  • If you’re not ready to commit but want us to facilitate scope and fund approval, we charge a non-refundable $500 fee. Should you choose us for the work, this fee will be credited back to you.

Step 6: Work Authorization

After you receive our bid, we’ll email a standard work authorization form for your review and signature.

  • A 50% deposit is required before starting work, with the balance due upon completion.
  • For larger projects, additional payments may be needed to ensure timely payment to subcontractors. We’ll discuss these in advance with you and your insurance.

Step 7: Material Selection

Once the work authorization is signed, we’ll provide locations where you can select materials. We’ll give you a budget based on the like-kind and quality of materials. If you prefer higher-end options, we’ll issue a change order.

Step 8: Timeline

After material selection, we’ll provide a project timeline to ensure both parties stay accountable.

  • If a change order is made, a revised timeline will be issued.
  • External factors, such as economic conditions or material shortages, may impact the timeline. While we do our best to stay on schedule, we cannot guarantee exact completion dates. We’ll communicate any changes promptly.

Supplements

It’s important to note that the initial estimate may change due to unforeseen factors during the repair process. These factors can include:

  • Unanticipated permits
  • Hidden issues uncovered during construction
  • Materials being out of stock
  • Material price increases
  • Tax rate changes

We are committed to providing clear communication and transparency about any price deviations from the original bid. These additional costs are typically referred to as “supplement bids.” We’ll coordinate with both you and your insurance company when a supplement is required for your project.

Change Orders

Change orders differ from supplements and occur when clients choose to deviate from the original scope of work. For example:

  • You may take this opportunity to complete additional renovations or upgrades in your home.
  • These decisions are exciting, and we’re happy to help make your vision a reality!

However, it’s crucial to remember:

  • Insurance only covers repairs to pre-damage conditions with like-kind and quality materials.
  • If you choose to proceed with upgrades or additional remodeling, we will require a signed change order agreement outlining the additional scope and costs. This protects both parties and ensures only approved work is completed and billed.

Insurance Policy Tips

Every Policy is Different

Don’t rely solely on the advice of friends and family when deciding whether to file a claim. Their policy may differ significantly from yours. Speak directly with your insurance company or a professional to fully understand your coverage. Each policy offers a variety of options and endorsements that can change your level of coverage.

Deductibles

Remember, even if your claim is approved, you will be responsible for paying your deductible. If you’re unsure of the amount, consult your insurance agent or adjuster.

Premiums

Filing a claim may increase your policy premiums. Be sure to weigh the potential increase against the benefits of filing. Your insurance provider can offer specific information about how your premiums may be affected.

Coverages

Insurance policies typically divide funds into specific categories or “buckets” for different purposes:

  • Dwelling: Covers the primary structure of your home. Think of this as everything that remains in place if your house were turned upside down.
  • Personal Property/Contents: Covers your belongings, which would “fall out” of your home in the analogy above. Typically, you’ll need to provide an inventory with details like the item’s age, condition, receipts (if available), and photos. Though we don’t handle contents directly, we can recommend trusted vendors.
  • ALE (Additional Living Expenses): Covers incidentals during repairs, such as hotel or Airbnb stays if your home is unlivable. If your home is livable but lacks key facilities (e.g., a working kitchen), it may cover dining expenses. Consult your adjuster for specifics.
  • Mold & Rot: Many policies exclude mold and rot, or provide limited coverage (e.g., $1,000–$10,000). Some require specific endorsements for coverage of long-term damage. Discuss these details with your agent or adjuster.
  • Separate Structures: Covers detached structures like garages or sheds on your property.
  • Pack Out & Content Manipulation: If furniture or belongings need to be moved for repairs, we’ll help identify temporary storage solutions. If additional resources are needed, insurance may cover third-party packing and storage companies. We work with trusted partners to ensure this process runs smoothly.

Warranty Information

We offer a 12-month workmanship warranty. Product warranties may vary depending on the materials selected and the manufacturer’s terms.