The Construction Process

The first step in any major loss should be the permit stage. Several town offices have Code or Ordinances which regulate how and if a building can be rebuilt. These are very important to your claim as it may require your building be demolished if it exceeds a certain percentage of its assessed value.  There are also restrictions on parking spaces, sewer and septic to name but a few.  Start with your building department and see what they will require. A visit to your Town Hall will go a long way. Also notify the Town's Tax Office that your building has been destroyed and inquire about a tax rebate or abatement.

If there are questions regarding where the building will be rebuilt from, the deck or from the foundation, it is a good idea to hire the services of a structural engineer. Heat and water can do significant damage to foundations and supporting framing members.

If your home or business is declared a Total or Limits Loss you are entitled to more than just limits listed on your policy. There are several Additional Coverage's that extend limits under your policy. Let's examine one of those and how this would make a difference to your claim.

If your home is declared a Total Loss the first contracting company will be a demolition contractor.  There are several located in your telephone book and the prices vary greatly between each. Example: the limit on your Building (Coverage A) is $200,000.00. You receive a bid to take your building down for $14,000.00.  That leaves you with $186,000 to rebuild your $200,000.00 home.  (Limit Loss) 

Your policy carries Additional Coverage in addition to limits up to 10% of Coverage A. Form (HO-O3). In the above example Coverage A is $200,000.00. Without this coverage you have $186,000.00 after you pay debris removal expenses ($14,000.00) to rebuild your home.  You would at this point be $14,000.00 short of what you need to rebuild your home provided it would cost $200,000.00 to rebuild.  This Additional Coverage is the coverage we make mention of in our brochure. ($10,000.00)

How big of a difference does this now make to your claim? Now you have Limits on the building, $200,000.00 plus another $20,000.00 Additional Coverage for Debris Removal. This give you $214,000.00 as opposed to $186,000 you would have had if you didn't know about this coverage. That's a difference of $28,000.00. Don't expect the adjuster to tell you this. If he didn't, why not? To protect the best interest of the company!

There are many more coverage's that have equal effects when it comes to policy coverage. If you're not aware of them and not a coverage expert, you won't get them. This is a coverage issue. If you know coverage and knew about all these coverage's, you probably don't need our services.

Let's look at another way we can help now that you know about Debris Removal coverage. It's time to negotiate with your demolition contractor. First concern is the price. How much will it cost? This price varies greatly and should be considered on tonnage and other factors such as power lines, security, and access to the property.  Know exactly  what your getting from the contractor. Is capping of the sewer and water covered in the price? How is the basement to be filled? Will the foundation be collapsed and what difference will that make?

This is another example of how Property Adjuster Associates can benefit you in addition to the information we gave you above. We sit with your contractors to negotiate contracts. After 30 years in the claims business we have dealt with nearly every contractor in the state and know we can get the best prices possible. Does it make sense at this point if we're rebuilding to have the demo contractor dig for your basement instead of the cost to move heavy equipment? Of course it does. This saves you money. How about backfilling the foundation, spreading loom and hazardous waste? Those are all coverage issues.

Do you have your check yet? Has the adjuster finished his estimate? You have the foundation hole, do you have prints? Are architect fees covered? Your about a month into the project at this point. How many parking spaces do you need? Can you rebuild? Do you need a variance? Handle these issues before you get to this point!

Get temporary electricity out at the site as soon as practical. Now it's time to choose a contractor. (see choosing a contractor link)