How To Understand a Claim Estimate

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When faced with extensive damage to your Dallas, TX home, you rely on your home insurance provider to assist in the restoration. After filing the claim and visiting with the adjuster, you will receive a detailed summary and itemized estimate of the repairs need and associated cost and coverage. While some homeowners may be savvy with the process, the majority of people may find understanding the documentation a challenge.

Spreadsheet Breakdown

Whether a supply line caused water damage, a hailstorm tore up a roof or another unexpected accidental issue happens, the repairs may reflect much more than a single issue. Although every estimate may be different, below are the common columns listed:

1. Description – The first section is often a breakdown of the actual items that need repaired. Each will be listed separately. In a roof situation, it may list things such as shingle removal and vent repair.

2. Quantity – Every repair required has its own measurement. This may be represented as the square footage of a room, quantity of light fixtures and fixture dimensions.

3. Price – Any repair has an associated cost for repair that is based on fair market pricing research.

4. Deprecation – The older an item is, the less it may be worth.

5. Actual Cash Value – This displays the upfront amount paid for each item. This column typically has a total at the end, which provides a broader picture of actual payment.

Create a Home Paper Trail

Although home insurance provides peace of mind, the process can be a little overwhelming. While many restorations companies use a 3rd party billing service to make things easier and more straightforward, it can be easy to feel frustrated if the estimate itself seems undervalue. Being prepare beforehand can ease some of that. Homeowners should have their own paper trail of what the property is worth. This may be as easy as keeping a copy of the latest appraisal on file or having actual floor-plans from the builder. Any improvements made should be documented, and receipts should always be saved.

Damage to a home is frustrating. Understanding home insurance estimates beforehand can help you be more prepared and ensure a smoother process.
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