Hurricane IKE - Insurance Claims & Common Construction Estimates

publicadjuster01 · Newbie

RE: Hurricane IKE - Insurance Claims & Common Construction Estimates

Roger Poe · Member

The ABC's of Reasonable and Fair Reconstruction Estimates

A. After a eco-catastrophe happens, local and area construction professionals are quickly loaded up with work.

B. Material and labor become in short supply, and market prices go up accordingly.

C. Insurance adjusters and construction contractors should work out fair and reasonable costs / supplements for each individual project.

A Basic Insurance Loss Claim Reconstruction Estimation Example

Construction Component Costs Insurance Agents Account For

Roof - 1 Story 4:12 Pitch Hip
Base Labor & Materials For Simple Roof w/10% cut-waste factor.

   $990.00 - Remove 3000 SF Shingles 30 year - $33.00 Square (SQ)
   $144.60 - Remove/Prep Deck 3000 SF Felt - 15/30 YR. - $4.82 SQ.
   $449.13 - Replace 3300 SF Felt 30 YR - $13.61 SQ
$5,115.00 - Replace 3300 SF 30 YR Shingles - $155.00 SQ
$6,698.73

Guttering - Seamless Aluminum 5" - Labor & Materials

   $120.00 - Remove 240 LF - $0.50 LF
     $18.00 - Remove 60 LF Downspouts - $0.30 LF
   $432.00 - Replace 60 LF Downspouts - $7.20 LF
$1,512.00 - Replace 240 LF - $6.30 LF
$2,082.00

Windows - 6 - Aluminum Frames - 3'*5'

     $87.06 - Remove 6 Windows - $14.51 EA.
$1,491.42 - Replace 6 Double Insulated Windows - $348.57 EA.
$2,178.48

Vinyl Siding/Trim - 1760 SF - High Grade W/4% Cut-Waste

   $387.20 - Remove Siding/Trim - Vinyl Siding - 17.60 SQ - $0.22 SF

$6,547.20- Replace 1760 SF - $3.72 SF
$6,934.40

Cedar Fence - 200 LF W/4" * 8' Posts (Two Feet Set In Concrete)

$281.25 - Remove 25 LF Cedar Fence Posts/Concrete - $11.25 EA
$1,046.00 - Remove 200 LF 6' - $5.23 LF
$1,750.25 - Replace 25 4" * 8' Posts/Concrete - $70.01 EA.
$6,290.00 - Replace 200 LF 6' - 31.45 LF
$9,367.50

Misc. Project Items/Extended Costs

$280.00 - Material Delivery Charge
$250.00 - Building Permit
$350.00 - Dumpster
$352.00 - Site Clean-up - 16 Hrs. $- 22.00 Hr.
$185.00 - Dump Fee
$1,417.00

$28,678.11 - Sub-Total
$2,867.81- Contractor's Overhead 10% (Minimum)
$31,545.92 - Total
$3,154.59 - Contractor's Profit 10%
$34,700.51 - Grand Total

This basic reconstruction estimation example is also how many adjusters summary pages are structured in general.

Too, the 10% overhead and 10% profit line items above are very basic construction (Insurance Adjuster Estimate) O&P margin replacement costs that the Texas Department of Insurance explains are owed claimants, whether a contractor is used or not.*

One particular company, Allstate Insurance, recognizes a collective 49%+ O&P factor for Primary-General Contractors Allstate customers hire, and understands that general contractors win and contract for single, double, triple and more specialty trades work everyday. **

A policyholders individual Contractor's actual replacement/reconstruction overhead and profit cost factors may be higher, and are "adjusted to" by insurance adjusters everyday.

Experience shows that adjusters "adjust" to fair construction market costs, they do not establish and/or illegally "fix" them, or deceptively restrain them.

So in summary;

1. Make sure ALL exterior/interior damage is accounted for. That is what we pay insurance for.
2. Hire a high quality Contractor. One who is familiar with insurance loss claim work is an even stronger choice.
3. Let the Contractor work out the reconstruction/cost details with the insurance adjuster.
4. Show a patient, neighborly interest in the project, and make allowance for circumstances beyond the control of the Contractor.
5. Pay the Contractor in a timely manner.
6. Recommend your Contractor to others.
7. If paying for your portion of the job costs (your "deductible") is a financial burden, speak with your Contractor about it. They may let you do a portion of the job yourself, or work out other arrangements.
8. Show patience and appreciation to the insurance adjuster.

This information is a quick guideline to help ones think about ALL the storm damage that may have touched the exterior and interior, and I'd like to suggest ones make their own DETAILED list, and take PICTURES, of ALL damage & contents they are going to claim.

Please, remember to not throw anything away until the adjuster has seen it, unless the adjuster tells you to, AND you have pictures/video.

Take care.

-Roger

rogerpoegc@gmail.com

* http://www.tdi.state.tx.us/bulletins/1998/b0045-8.html

**http://www.tdi.state.tx.us/bulletins/2008/cc70.html

-- Edited by Roger Poe at 22:35, 2008-09-29