WHAT IS AN INSURANCE CLAIM SCOPE OF LOSS?
A scope of loss is a detailed description of the amount and type of storm or hail damage that has been done to a structure.
CIG Consruction provides an insurance claim scope of repairs which includes:
- quantity and quality of materials
- current cost of those materials
- cost of labor needed to repair
DESCRIBING PRE-LOSS PROPERTY
Most insurance companies value a loss and make a settlement offer by preparing an estimate or a scope of loss. The insurance company’s adjuster will usually inspect the property and interview the insured. Insurance companies base their claim settlement offers on estimates or scopes of loss.
You, the insured, can prepare or hire a claim or construction professional to prepare an independent scope of repairs, and then see how it measures up against the insurance company’s scope.
Some insurance adjusters prepare their own scopes, others hire outside contractors to prepare them. Many adjusters today use a computer program called Xactimate to prepare their scopes, estimates and settlement offers. Xactimate is a tool, and should not be the last word. Computers don’t rebuild homes – contractors do. If an adjuster using Xactimate software doesn’t input complete or accurate information about your property and/or current costs, the estimate it produces will be inaccurate.
We help with your Independent Scope of Repair. Contact us and we’ll respond within 24 hours.
WHY IS SCOPE OF LOSS SO IMPORTANT?
A clear and complete insurance claim scope of repair helps a property owner get a fair, full and prompt insurance claim settlement and resist “lowballing”.
Our scope of repairs bridges the gap of missed repair items in the insurance claim scope of loss. Our detailed insurance claim scope scope of repairs often includes photos, diagrams, and a detailed line item broken down by construction trades and materials. A complete scope of repairs will specify the work that needs to be done to comply with the local building codes in the area.
Typically, the insurance company will make a settlement offer for repairing wind damage, storm damage or hail damage to your home. The insurance company may base this offer on a “scope of loss,” “estimate,” “loss evaluation” or another label. The label doesn’t matter. What matters is that it is complete and accurate. The more detail you provide about your pre-loss home, the more accurate that offer should be.
WHAT IS LOW-BALLING?
“Low-balling” occurs when the insurance company’s offer of what they will pay to repair your home is LESS THAN what it will actually cost you. Unless you have the construction expertise needed to evaluate whether the scope of work/materials and the cost assigned to those items in the insurance company’s offer is accurate, hiring a third party is a vital tool. Known as an Independent Scope of Loss, this is the best way to know if you’re being “lowballed” by an insurance company.
WHO CAN PREPARE AN INDEPENDENT SCOPE OF REPAIR?
An experienced contractor familiar will the insurance claims process like CIG Construction, can assist in preparing a scope of repair. Other independent consultants, construction estimator or public adjuster are able to prepare a scope, usually for a fee.
An advantage of using an independent scope of repair to negotiate with your insurance company is that it entails a greater level of detail about the scope of work to be performed and its associated costs. When the insurance company is provided with a credible and detailed scope of repair, it becomes harder for them to underpay the claim. Additionally, an independent scope of repair is more likely to be formatted similarly to the insurance company’s scope, allowing for “apples to apples” comparison of the work and costs estimated by the insurer and the insured.
QUESTIONS TO ASK BEFORE HIRING A CONTRACTOR TO PREPARE AN INSURANCE CLAIM SCOPE OF REPAIR:
1. Have you previously prepared an independent scope of repair?
2. Are you familiar with local construction costs in my area? If so, how?
3. How much will you charge for preparing a scope of repair and what is included?
4. Ask for references and call the references.
5. Clarify the scope of work to be performed and fee(s) charged.
a. Does the scope of work include responding to insurance company questions regarding the scope?
b. If not, how much does the preparer charge to respond to insurance company questions?
c. Is the preparer willing to meet with the adjuster to “defend” his scope against the insurance company’s scope?
6. If the person holds a contractor’s license, check the license status with the local city and county building department.