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 Posted: Mon Feb 22, 2010 8:01 pm Post subject: Insurance construction estimate insufficient for renovation |
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My condo was recently damaged and my insurance carrier provided me with an estimate for the repair of my unit. Upon my review of the insurance estimate as well as receiving estimates from several sub-contractors, there is a substantial difference in the cost of the renovation. The difference ranges from 40% to greater than 100% on some trades. This equates into the true cost of the renovation being several thousand dollars above the insurance estimate.
I understand that the insurance companies utilize an estimating program in which figures are imputed and in turn, spits out an estimate. Since my estimate is substantially higher than the insurance estimate, I do not want to hire a contractor until I receive the difference in the construction cost.
The question is this, what is my recourse with the insurance company at this point? I have the estimates from all the subcontractors which can be submitted to the insurance company to prove my case but can they deny the additional monies required to complete the renovation?
Thanks for your help! |
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Diesel
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Joined: 22 Feb 2010
Posts: 2
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| Posted: Tue Feb 23, 2010 1:52 am Post subject: |
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| Quote: | | The difference ranges from 40% to greater than 100% on some trades. This equates into the true cost of the renovation being several thousand dollars above the insurance estimate. |
An estimate is just that, an estimate. Your claim is/maybe subject to depriciation. The contractor(s) estimate maybe inflated. Some renovation costs/repairs may not be covered under the policy. Several other factors maybe a reason why there is a significant difference.
| Quote: | This equates into the true cost of the renovation being several thousand dollars above the insurance estimate.
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As I said before, all are just estimates and do not reflect a final bill regardless of who wrote it.
| Quote: | | I understand that the insurance companies utilize an estimating program in which figures are imputed and in turn, spits out an estimate. |
Your contractors maybe using a similar program.
| Quote: | I do not want to hire a contractor until I receive the difference in the construction cost.
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You won't until you reach an agreement. Or decide to accept the insurer's estimate. Submit one or both estimates to the insurer (or vice versa) so that the parties can negoiate a estimated settlement amount.
| Quote: | | but can they deny the additional monies required to complete the renovation? |
Sure can if some of the costs are not covered, depriciation and other factors. |
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Trench
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Joined: 16 Sep 2009
Posts: 911
Location: Kansas City
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| Posted: Tue Feb 23, 2010 8:41 am Post subject: |
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Send in your estimates and the adjuster can go through them and find the differences and work with you.
Or contact a general contractor who will write the entire job and work out an agreed price with your carrier.
When a policy holder piecemeals an estimate with several sub-contractors, it always makes it more difficult to reach an agreed price.
Me, I would go with a GC - stay involved and get an agreed price to repair.
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Dasfuk
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Location: Ohio
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| Posted: Sat Mar 20, 2010 11:42 pm Post subject: |
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I submitted all the appropriate information to the adjuster in regard to the overages for the construction. They requested another site visit to the property which was completed last week and the insurance company admitted that items had been left out of the estimate and they would be revising the figure.
In addition, the adjuster said that the overages which I submitted were incorrect for a number of reasons like a difference in materials. My home is over 30 years old and much of the materials used back then are no longer being used in construction. I stayed as close as possible to the existing construction, utilizing materials made in todays market. I am now awaiting the revised estimate from the adjuster to see if we are still thousands of dollars apart on the cost of construction. I thank all of you for all the advise. |
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Diesel
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