Help dealing with insurance company...

[KitchenKitten99]

Ok, so they got us an estimate on our house, supposedly from two different contractors. Not that I don't believe them, but I wasn't there, nor was DH when both of them went through.

the estimated cost to repair is about $162,000.
Our insurance limit is $207,000
House is probably worth $210,000 (if that).


Here is the dilemma. The house got so hot that the firefighters had to bust every one of our windows except the front living room one. The heat level in the kitchen got so hot that my plastic storage canisters that sat at the top of one of my cupboards (they had flour & salt, etc), melted.

Not only that, is our ceilings were only 7-8' high, depending on the room.

There was an old exhaust fan that hadn't worked in years, and had been just painted over the last time we painted the ceiling 4 years ago. That was plastic, and when it melted, it fell, leaving a 2ft dia. hole in the ceiling, that opened up to the rafters. It took the firefighters about two hours to finally even get the blaze under control downstairs.

The floor directly over where the fire started has no joists left... they burned completely.

My house is/was a rambler, built in 1969.

At this point they would have to gut the house entirely, down to the studs. And with the amount of possible water damage to the foundation (there was about 4" at one point as my DH told me), we think it best to demo the whole thing and just rebuild from scratch. We shouldn't have a problem getting a decent house for $207k. Especially right now with winter hitting construction companies hard, contractors will be scrambling to get winter work.

Based on the level of heat that the house was exposed to, and other underlying damage, I have been told that rebuilding from scratch is the best route. I agree with this because with the smoke smell likely embedded in the attic and studs, once summer hits, no matter how well the repairs are, we will still smell it with the humidity.

I have someone coming to look at the house at 9am, who is a rebuilder/remodeler. Even as I talked over the phone, he agrees with me that repairs only would seem fine until summer hits. Plus the company doing repairs has to guarantee their work. Well if we have problems (and we likely will), then that not only costs them more out of pocket, but then disrupts our lives again, though it would depend on the problem itself. Could be mold issues, smoke smell, foundation leakage, a combination all of them, etc.

Now, I don't want to seem like a biatch over all this, but how do I reiterate to my insurance company that we pay a yearly premium on $207k, so we should GET the full $207 to rebuild from scratch (considering the amount that it would take to fix it), new foundation and all? Is there something I can say or do that would make them understand better, other than having my own company do the estimate(s)?

Tips/knowledge on this are greatly appreciated! Thanks in advance for your replies. :thumb:

[Kathianne]

Ok, so they got us an estimate on our house, supposedly from two different contractors. Not that I don't believe them, but I wasn't there, nor was DH when both of them went through.

the estimated cost to repair is about $162,000.
Our insurance limit is $207,000
House is probably worth $210,000 (if that).


Here is the dilemma. The house got so hot that the firefighters had to bust every one of our windows except the front living room one. The heat level in the kitchen got so hot that my plastic storage canisters that sat at the top of one of my cupboards (they had flour & salt, etc), melted.

Not only that, is our ceilings were only 7-8' high, depending on the room.

There was an old exhaust fan that hadn't worked in years, and had been just painted over the last time we painted the ceiling 4 years ago. That was plastic, and when it melted, it fell, leaving a 2ft dia. hole in the ceiling, that opened up to the rafters. It took the firefighters about two hours to finally even get the blaze under control downstairs.

The floor directly over where the fire started has no joists left... they burned completely.

My house is/was a rambler, built in 1969.

At this point they would have to gut the house entirely, down to the studs. And with the amount of possible water damage to the foundation (there was about 4" at one point as my DH told me), we think it best to demo the whole thing and just rebuild from scratch. We shouldn't have a problem getting a decent house for $207k. Especially right now with winter hitting construction companies hard, contractors will be scrambling to get winter work.

Based on the level of heat that the house was exposed to, and other underlying damage, I have been told that rebuilding from scratch is the best route. I agree with this because with the smoke smell likely embedded in the attic and studs, once summer hits, no matter how well the repairs are, we will still smell it with the humidity.

I have someone coming to look at the house at 9am, who is a rebuilder/remodeler. Even as I talked over the phone, he agrees with me that repairs only would seem fine until summer hits. Plus the company doing repairs has to guarantee their work. Well if we have problems (and we likely will), then that not only costs them more out of pocket, but then disrupts our lives again, though it would depend on the problem itself. Could be mold issues, smoke smell, foundation leakage, a combination all of them, etc.

Now, I don't want to seem like a biatch over all this, but how do I reiterate to my insurance company that we pay a yearly premium on $207k, so we should GET the full $207 to rebuild from scratch (considering the amount that it would take to fix it), new foundation and all? Is there something I can say or do that would make them understand better, other than having my own company do the estimate(s)?

Tips/knowledge on this are greatly appreciated! Thanks in advance for your replies. :thumb:

Here's my take, having been a licensed producer for State Farm. You are entitled to what the 'company' says is the damage. Now you can discuss and get approval for using what they say and adding to it to do what you want, but odds are, they will only assume liability up to what they are saying.

On the other hand, you can lodge a protest and see if they'll go along. Suing an insurance company is most likely a losing battle and will cost you more in the long run.

See what they'll go for and mortgage the remainder. You still get a 'new' house with the bulk being picked up, without smoke.

[namvet]

the limit being the cost of replacing the home if this happens. I don't see the problem here. are they saying now its worth less than the cost rebuilding???

[PostmodernProphet]

you might want to consider talking to somebody like these folks....

http://www.adjustersinternational.com/?source=ssi_gaw&gclid=CISVrYa3z5cCFSIgDQod4FEzDA

they generally charge a percentage of what they get you over and above the ins. co's first offer.....

I used one in an apartment complex fire and they got us another $45k, their fee was 12%....

the insurance company in that instance, for example, said they would pay for new ceiling joists but not new ceiling drywall....I tried to ask them how they expected us to save the drywall when we removed what it was attached to but they wouldn't talk.....

[namvet]

mine covers the the entire home replacement. not just pieces of it.

[KitchenKitten99]

mine covers the the entire home replacement. not just pieces of it.

So does mine, which is why I am having a hard time understanding why they are more adamant about trying to fix the place than demo & rebuild.


you might want to consider talking to somebody like these folks....

http://www.adjustersinternational.co...FSIgDQod4FEzDA

they generally charge a percentage of what they get you over and above the ins. co's first offer.....

I used one in an apartment complex fire and they got us another $45k, their fee was 12%....

the insurance company in that instance, for example, said they would pay for new ceiling joists but not new ceiling drywall....I tried to ask them how they expected us to save the drywall when we removed what it was attached to but they wouldn't talk.....

I don't want to use people like this because of their fee. The difference between our estimate and our policy limit really isn't that much, and any amount that they take, we may end up needing. We can't afford to foot the difference if we end up needing the full $207k, which i expect we will, considering the foundation size and shape. We want to keep the same foundation size, so we'll likely need a custom design because most designs I am looking at from builders online, are a bit more square, and ours is a rectangle. Plus most of the designs I am seeing have attached garages. Ours is detached, well away from the house.

[namvet]

also I took photos of all the contents inside and put them on a CD. its in a fire proof safe. so no arguments about whats in there. matter of fact I need to update that.

[Hull]

So does mine, which is why I am having a hard time understanding why they are more adamant about trying to fix the place than demo & rebuild.

Insurance companies are all about the money. I think if you could find a contractor that would say it's cheaper to rebuild new than to repair, they'd go for it. Then you also have the angle of smell. The only way to get rid of it may be new construction. I'd emphasize that. If the insurance company stuck to their guns and said just fix it up, but after it was all done it still stunk like fire, you have a very good case in court against them.

[namvet]

yeah if was fire smoke and water its totaled.

[manu1959]

fuzzy....find your self a contractor and architect that you trust and will go to bat for you ...... you need to get a quick design and cost from your side to completetly rebuild.....you may be able to get them both to take it on contingency ..... i helped people rebuild after the fire in the oakland hills ..... push back and push back hard.... never take someones opening offer ..... i would open with a set of sketches and a contractors bid of $250,000.....

in the meantime create a list of everything you can think of in the house.....

[namvet]

it used to be the insurance companies would give a list of contractors at your request. they had a list of reputable contractors in your area. no more. they now say that's playing favorites. thanks for nothing !!!!

[Mr. P]

it used to be the insurance companies would give a list of contractors at your request. they had a list of reputable contractors in your area. no more. they now say that's playing favorites. thanks for nothing !!!!

Here there are companies that specialize in fire restoration and rebuilding. That's all they do and are contracted mostly by the insurance companies. Knowing there are folks who do specialize in this type work I'd never hire a run of the mill contractor to do it.

[namvet]

Here there are companies that specialize in fire restoration and rebuilding. That's all they do and are contracted mostly by the insurance companies. Knowing there are folks who do specialize in this type work I'd never hire a run of the mill contractor to do it.

your lucky. most require you find your own. but then I haven't gone thru a house warming party - yet

[Mr. P]

your lucky. most require you find your own. but then I haven't gone thru a house warming party - yet

Yellow pages are yer friend.

[namvet]

Yellow pages are yer friend.

ya don't mind talkin to crooks/scammers sure. you could use the BBB

[Mr. P]

ya don't mind talkin to crooks/scammers sure. you could use the BBB

My insurance company won't deal with crooks.

[namvet]

My insurance company won't deal with crooks.

my point IS they won't help you here anymore. your on your own. if your co won't deal with crooks you have an edge. see???? not everyone does

[Yurt]

fuzzy....find your self a contractor and architect that you trust and will go to bat for you ...... you need to get a quick design and cost from your side to completetly rebuild.....you may be able to get them both to take it on contingency ..... i helped people rebuild after the fire in the oakland hills ..... push back and push back hard.... never take someones opening offer ..... i would open with a set of sketches and a contractors bid of $250,000.....

in the meantime create a list of everything you can think of in the house.....

he is right. also, read your policy and find out if you are entitled to independant valuation of the damages. for example, in CA you can take your car to any dealer/shop you want to get it repaired, if it is above your policy or far higher than the insurance thinks its worth you may be responsible for the difference, but usually the insurance goes along with it. i don't know if this is applicable to houses, but is there a "totaled" threshhold for the house?

[Mr. P]

my point IS they won't help you here anymore. your on your own. if your co won't deal with crooks you have an edge. see???? not everyone does

Nope, I don't see.. cause I question everyone, including the insurance company. Due diligence is also yer friend.

[KitchenKitten99]

the guy we are hiring is someone who did kitchen remodeling work for the guy I worked for on his state rep campaign this summer.

He started in the business of fire & water restoration when he first opened his own business, then he got into other areas like rebuilding and reconstruction, etc

[PostmodernProphet]

I had a client a while back who had the opposite problem.....the insurance company argued that they should only have to pay what the house is worth instead of rebuilding.....and since the value of houses had taken a big hit they wanted a big discount.....tens of thousands less than the insured value he had been paying a premium for (and which they had required he insure it for)