There are legal, moral and ethical ways to handle this situation and we take them on a case by case basis. We will gladly sit down and address your options based upon your individual circumstances.
It helps us to agree on the scope of the work or damage to your property. It expedites the process, saves all parties involved a great amount of time and money. Overall, it makes the process much more convenient for everyone.
Depreciation is an insurance term that is used in two different ways depending upon the type of policy that you have. If you have a RCV (replacement cost value) policy, the depreciation is merely held back until you can prove that you have incurred the cost of completing the repairs. Once the work is completed, you will receive the remaining money. If you have an ACV (actual cash value) policy, the depreciation means that besides the deductible, you will pay a prorated portion of the repairs above and beyond your deductible amount. For example, if you have a 30 year roof that is 10 years old, your insurance company will deduct 1/3 of the value of the roof plus your deductible from the actual estimate. Many people really do not understand how little insurance they have until it is to late. That is why you need a professional company like LEVEL 1.
I have an RCV Policy but my insurance company is showing Non Recoverable Depreciation on some of my claim. What does this mean?
Insurance companies have different levels of RCV policies. They typically have Good, Better and Best. They are trying to give maximum benefits with your budget in mind. A good RCV policy will generally cover the roof at Full Replacement Cost, but may prorate your fence that is 10 years old with a life expectancy of 20 years. They will then subtract half of the value of the fence and call it “Non Recoverable Depreciation”.
Yes you can, but it is very dangerous! Your insurance company will allow you to keep the ACV portion of your settlement and not make the repairs but your mortgage company may not. Typically, if you do not make the repairs…YOU WILL NOT BE INSURED! So…whatever you choose NOT TO FIX, will NOT be insured. If you choose to not fix the roof and you begin to have leaks, or another storm hits, your insurance company will not pay for the roof again. ALSO, they will not pay for any damage to the property caused by leaks that should have been fixed. All the while, you will still be paying full premiums!
Because your mortgage company has a vested interest in your home and they will want the repairs to be completed. LEVEL 1 will assist you every step of the way through this process.
This is where having a professional on your side really helps you! LEVEL 1 will walk with you through this process and be a liaison between you and your bank to ensure the repairs get done that are needed.
This is where LEVEL 1 is at its best! We will handle all of the work for you behind the scenes. We need about 15 to 20 minutes of your time, and we will handle the rest!
Often times, especially when a storm has recently hit, this is a way of stalling so that the insurance companies have time to get an adjuster out to your home. This is also a way to try and save them money. All reputable companies pay close to the same thing for labor and materials. If one of them comes in substantially cheaper than the others, they are most likely cutting corners somewhere. This is a time for you to BEWARE! We are talking about the covering of your home. This is not a place to cut corners with less than quality materials or workmanship!