For many homeowners, property damage does not come from their own actions. Neither does it come from “acts of God” such as storms. Sometimes, independent contractors can cause damage to your home. One of our client’s homes was badly damaged by a fire that a contractor started. Something as small as a cigarette turned into a blaze that nearly claimed the entire building structure. However, by involving us from the very beginning of the claim, On-Site Adjusting was able to get him the maximum payout. Keep reading to find out just how we did that.
Client Background
Our client was a business owner who owned and managed a window manufacturing company. His mansion was in Lake Forest, Illinois, and we called him after a separate contractor informed us about the fire. The property was large, with aluminum-clad and double-paned European-style windows. It had a large, expensive wooden staircase leading to the upper floor. There were also expensive, high-end fixtures decorated around the home.
Although this homeowner wasn’t sure what to expect from the insurance process, he completely trusted us. He brought us on board from the very start. Doing so helped smoothen the process. This decision would later help our client secure a large payout to cover the entire damage.
The Challenge
After the firefighters successfully extinguished the fire, a huge burn was left on the property’s rear. The rafters in the basement had suffered damage and were completely burned through. Furthermore, the drywall, the customized wooden staircase, and the windows had suffered serious damage. As you can probably guess, the insurance company was not too happy with this level of damage. Therefore, we had our work cut out for us. Nevertheless, we ensured our client had a successful claim in the end.
The windows on the property alone were worth about $400,000 and the insurer gave us a hard time regarding that.The insurance company claimed that the homeowner, being the owner of a window-manufacturing company, could replace the windows at a lower price. This disagreement over window prices led to several negotiation sessions.
Furthermore, the fire also affected the roofing. Thus, we had to request a complete roof replacement. The insurer believed we were asking for too much. Insurance companies are never willing to pay large amounts for claims. If they had their way, they would always pay the lowest possible settlement amount. In this scenario, the insurance company did not believe the homeowner’s report on the extent of the damage. Therefore, they investigated the claim for a very long time—about six months.
Our Approach
Here is how we handled the challenges with the claim:
Damage Mitigation
We started by pumping out the water from the basement. The firefighting efforts had left the basement with a lot of standing water. At On-Site Adjusting, we know how important it is to perform all necessary emergency services when dealing with a claim. This helped us preserve the claim and also prevented any further damage from occurring on the property.
Documentation
The next step was documentation. Our team examined every nook and cranny of the home, taking notes and detailed photos and videos. Furthermore, we got diagrams, sketches, and dimensions of every affected room. This included all high-end fixtures in the home and prices. Doing this helped us flesh out the claim.
Damage Investigation
Our team did not focus only on heavily burned items and structures of the house. We also took cognizance of the soot damage. A lot of smoke collected on the clay-tiled roof during the fire. Therefore, we opened up the tiles to check for soot underneath them to ensure roofing materials weren’t compromised. As we suspected, there was soot damage under the clay tiles.
Additionally, we opened up some of the walls to check the insulation and ensure they weren’t affected. This was important because damaged or compromised insulation is dangerous for the homeowner. The insurer kicked against our removal of the spray foam insulation. They claimed it could be reused when in reality, replacement was the safest option for the client. To support our decision, we hired an industrial hygienist to test the insulation. The hygienist did so and provided a report which showed that we needed to remove and replace the insulation. This significantly added to the value of the claim.
Repair Estimates
Getting itemized bids also helped us discover the true value of the claim. This prevented the insurer from undervaluing the claim. For example, we avoided using Xactimate to get the value of special items as the software only does well with basic home structures. We got a private bid for the price of the customized windows, wooden staircase, mosaic artwork, and custom plaster on the walls.
On-Site Adjusting also met with the insurance adjuster on site. We did so to point out unseen damage. This helped our claim move further along. We did not only gather all the needed evidence and documentation. We also heavily advocated for the homeowner because that is what we do as public adjusters. This claim was quite large in value which meant that the insurance company investigated it heavily. Therefore, as professionals, we were able to discuss with the insurance company.
The Solution
Our team held a lot of meetings to discuss with the insurance company. We had to carefully and expertly negotiate the claim. When the insurer pushed back regarding the insulation, the hygienist report helped clear things up immediately. Furthermore, the private bids we got ensured that we had only accurate estimates.
By thoroughly documenting the claim, we presented a well-rounded claim with no weak points for the insurer to poke holes through. Furthermore, our exhaustive investigation left no stone unturned and no damage unseen. This means that we were able to claim for every single damage that the homeowner was entitled to under his policy.
The Result
The settlement totaled over $1.7 million. Although the insurance company tried to drag out the claims process for as long as they could, they had to cover the damage in the end. On-Site Adjusting helped the homeowner obtain payment for drywall, insulation, and windows. It doesn’t end there. The settlement covered the damage to the tiling, cabinetry, plumbing system, and electric system. Finally, we were able to get the insurer to completely replace the home’s roofing.
Lessons Learned
The fact that your insurer is legally obligated to cover certain damages does not mean they automatically have your best interests at heart. At the end of the day, the insurer’s interest is pecuniary— they need to make a profit. They make this profit by finding ways to pay the minimum possible settlement to policyholders.
Public adjusters, on the other hand, are your advocate as a homeowner. No matter how simple or complex your claim seems, a public adjuster will bring you ease. We will negotiate your claim and maximize it. Do not wait for your claim to become complicated. Be like our client and bring us in from the very beginning.
Conclusion
Property damage makes for tricky claims with disputes over costs. Public adjusters can help your insurer see the true value of your claim. With our attention to detail, we ensured the insurance adjuster did not overlook any damage. Furthermore, we were able to increase the value of the claim by having proof of the damage.
As a homeowner, do not let insurance companies or their adjusters cheat you out of your rightful settlement. Get an experienced public adjuster on your side. Give On-Site Adjusting a quick call today. Let us examine your case for free and help you maximize your claim.
