Ceiling Cave In

At Levco working with insurance companies has become a regular thing. Usually, things go well, but occasionally they go very sideways. We have used our vast experiences to share what we have learned. Here is how we handle insurance claims related to a Flood or Fire.

In most cases, the insurance company wants to work with everyone and get your home back together quickly. If they omitted something in their bid that is discovered after the fact, it is normally not a problem.

Owner Decided to Switch to Tile

The number one issue Levco has had is related to owners having unrealistic expectations of their insurance carrier. Owners believe the insurance agency is going to remodel more than was effected by the disaster! This is a constant battle.

• The idea is not to profit from a disaster. If you had hardwood before for instance, and want tile now,  you must sign a remodeling contract with a bid for the additional work. We do credit the difference, but has led to huge misunderstandings.

The second most frequent problem is that home owners have no idea what is excluded. They walk around as if no matter what happens that “You’re in good hands” or “You have an umbrella over you.” That is clearly not the case.

Thirdly, you will always need to pay your deductible out of pocket. The contractor won’t ” work it into the bid”.

Finally, you do not need to get 3 bids. If you select Levco, we will rebuild for the amount the insurance company allows.

Issues we have had include, but are not limited to.

1. Occasionally adjusters disallow repainting an entire room. They will only do a ceiling or one wall of a room.
2. Mitigation contractors (the disaster service of choice) butchering up the place, way more than is necessary.
3. The mitigation contractors pushing to be the company that rebuilds the home. You are not obligated. You may use your choice.
4. You may do your own work, however you are reimbursed at a substantially lower rate.

Flood

Frozen Split Pipe

Water problems. You are only covered by that which is caused by a domestic source. That means that you have to have something malfunction first, like a burst washing machine hose, or a toilet malfunction. If shingles blow off then you have a leak, OK, but not a worn out roof.

Exclusions include:

1. The malfunction that caused the flood. (You always need to pay for that)
2. External sources are not covered. (Unless you have federal flood insurance).
3. Having a rider that allows for code upgrades. Without it, things like hardwired smoke detector and upgrades to your electrical system, that are required will come from your pocket.
4. If the city system backs up into your home’s basement toilet, you need to get the city’s insurance carrier to take care of the bills. (This is not as easy as you might think)
5. If you are a renter, you are out of luck if you don’t have renter’s insurance. If your stuff is ruined in a fire, tough luck.
6. Although there is an exclusion for doing LSPW (lead safe work practices) in an emergency (during tear out and drying), a contractor must do LSWP in pre 1978 homes during the rebuild phase.

Fire

Garage Fire

Fire and Smoke. In one case, a neighbor had a fire in a rundown home and the insurance company replaced all sorts of things.  In Boise, like most metropolitan areas, a total loss is rare, so do not expect your burnt home to get replaced.

Issues we have had include but are not limited to.

1. Mitigation contractors (the disaster service of choice) go crazy cleaning everything you own and in one case, running up a $12,000 dry cleaning bill.
2. Delaying the cleanup to hold the home owner hostage until they get the rebuild contract too.
3. When rebuilding, we are held to new codes. Frequently there are huge headaches with getting structures rebuilt in the same place or with like materials.
4. Detached structures are rarely covered for enough to replace them. Your contents are normally not the problem.
5. If you are a renter, you are out of luck if you don’t have renter’s insurance. If your stuff is ruined in a fire, tough luck.
6. Although there is an exclusion for doing LSPW (lead safe work practices) in an emergency (during tear out and drying), a contractor must do LSWP in pre 1978 homes during the rebuild phase

Mold:

Unheated Garage with ADU Above

Just a note, after speaking with my agent Brian Frechette of Farmers insurance in Boise. Mold has been excluded as a covered item for the past 10 years but there is some softening occurring. If there is mold as a result of a recent flood then the additional cost associated with removing it is possible that you are covered. The circumstances must be as a result of an acute loss. Again you need to check with your agent for specifics.

Levco has your back. We take care of  the rebuilding that comes after a disaster. We do it well, and we do it quickly. We understand the intricacies and we have the relationships with the adjusters in the area.

Insurance companies Levco has worked with so far:

Liberty Mutual Insurance

Farmers Insurance

Farm Bureau Insurance

Auto Owners Insurance

Formost Insurance

Oregon Mutual Insurance

Safeco Insurance

God forbid, if some disaster befalls your home, insist that Levco is your insurance related rebuilding contractor of choice.

Disclaimer: Some of these images came from the WEB. If they are yours, and you object to them being used, please claim them and I will gladly remove them at once.

Rules regarding roof replacement changed recently in Boise Idaho. We used to be allowed 3 roofs now it is 2. In other words adding a second layer of roofing is OK but it it fails then you need to strip the entire roof and start over. Levco recommends replacing the roof before it starts to leak, however, since there is no prorating the old roof there is no incentive to do it early. We are commonly asked to evaluate a roofs condition and we often provide patching services a few times before replacement is recommended. Living in a usually dry climate allows us the luxury to let a marginal roof be leak free till the big one hits. Trust me, I understand wanting to get your moneys worth. If everything looks good from the street, I rarely give my roof a second thought. Unfortunately, it doesn’t take mush of a leak to cause lots of heartache on the interior. Are your prepared financially to spring for a new roof?

new cedar shingle roof

Cedar Shingles or Shakes come in many grades and are commonly used because of the affordability and availability in the Northwest. Unfortunately, in our dry climate the natural oils in the wood dry out making them brittle and fail. Not to mention the flammability factor. One common problem is that they last longer than they should. Thirty years plus is not uncommon. In other words, (keep the water out long after they start to look bad) Insurance companies will often give a discount for not having cedar shingles. They have been forbidden in especially fire prone areas.

old cedar roof

Cedar shingles were placed over skip sheeting and (sometimes tar paper) allowed them to dry out. In fact you could easily locate a roof that you could see through from below that still keeps the water out. It was explained to me that the shingles swell up when wet and become waterproof seasonally. I have applied a Chevron Cedar Shingle Oil in the past. I do believe the oil prolonged their life, it is a temporary fix at best. I have also stuffed shingles into missing spaces for another temporary fix.

Asphalt shingles

Asphalt shingles have become the preferred roofing material in our region and also come in a variety of grades and price points. They have a guarantee for longevity (provided a certified installer does the work) and a great look. They are resistant to wind damage and go on quickly. There are three tab shingles, architectural, & presidential shingles. The classifications indicate thickness and life expectancy.  The underlayment is OSB (Oriented Strand Board) a recycled or re-purposed inexpensive product. Ridges can be vented or not, tall or not, and there is a number of ways to install the valleys as well. Do not underestimate the value of proper attic ventilation, A poorly ventilated attic can easily shorten the life expectancy of a roof.

Tired old shingles

Some basic rules in evaluating your asphalt shingles include curling , missing shingles and missing gravel, and failed roof jacks. Levco advocates a free professional inspection by our roofer which includes a “Boots on The Roof ” inspection complete with photographs for you to review. Insurance companies will cover wind damage repairs and replacement but not a warn out roof. When it is time or when you have a hunch that you might be getting close, let us evaluate your situation for a recommendation on your next roof before you have to suffer the complications involved in a roof leak. Always remember the job is not done correctly until it is flashed correctly. Flashing installation is an art form, just using what was there may doom the project to an early failure. Our roofer thinks like the rain, eats, & breaths flashing. Time and time again new roofs fail the close scrutiny of Dave.

Tired shakes & curled asphalt

NAME THIS PHOTO This photo was taken on 6-24-2011 of a local business. The roof curl is amazing, why is doesn’t leak is unknown. I liked it because there are a number of problem shown in the same shot. The first person that can name the location correctly will receive a free gift. Have fun listing all the things that need attention. Bonus prize for the best list.

Now that the emergency occurred, there are several steps that need to happen quickly.

wow that's cold

• Get help on the way, underestimating the severity of the loss is common. Whether you have selected a trade specialist or a clean-up company. Getting someone to take the problem away from you and stop the damage is essential.
• Contact your insurance company as soon as possible. They like to know about any losses and are well prepared to assist you. If you need help locating your insurance company, we can help too. Be certain your policy covers the cause of the loss and ask about your deductible.
• Document the cause of loss accurately and completely. Photos help tremendously, yet are commonly forgotten in the rush to fix things.
• Once you have found a company that you are comfortable with, have that company start fixing things and uncovering damage. They will often ask you to pay the deductible on your policy. It is OK to do so.

UNDERSTANDING HOW INSURANCE COMPANIES WORK

Insurance companies have separated losses into two  divisions: Mitigation & Rebuild. They pay separately for each. They use a computer program to assign value to every task, material and the labor associated to accomplish the task. This way the insurance company will only reimburse for the assigned amount, and all contractors are on a level playing field. Insurance companies will also offer to have you fix your own home, however, be aware they reimburse at a lower rate. Insurance companies do not pay for the repair of the thing that caused the problem. IE: a broken water line or a faulty toilet.

Mitigation: This is everything to do with eliminating the damage and “clean up.” This phase is often accomplished prior to the insurance company sending a representative out. You may choose your own Contractor. At Levco we will to do as little demolition as possible and as much as necessary.

Rebuild: Thisis everything needed to get your home back into the shape it was prior to the loss. An agent will often respond prior to this phase but not always. This is where we believe a remodeling specialty company is best suited to assist you. You have the option to choose a Contractor other than the Mitigation Contractor.

There is no need for you to collect three bids. Once you’ve made your selection, notify your insurance adjustor.

Paying for the work

PRICING

Our price for the rebuilding your home and what is allowed to be included in the scope of work is set by the insurance adjustor and the company they represent. If during the work we identify additional problems that require fixing, we will communicate that to the adjustor for supplemental reimbursements.

Payments are usually made to the owner directly because the insurance company is essentially working for you. You may endorse them to Levco Builders LLC or deposit them and promptly write a new check to Levco Builders LLC. We often communicate directly with your insurance company. There may be several partial checks written over the course of the project including a depreciation check once the project is complete. Your prompt attention to forwarding these payments will prevent work stoppages.

There should be no additional money out of pocket other than your deductible and the cost to fix the cause of loss. Any upgrades you want done are charged to you directly. The goal is to get the home back to the pre disaster state. Occasionally in older homes, we find code violations and things that need to be upgraded to meet current building codes. Policies often include a clause that provides for upgrades. Regardless, we must always rebuild to code. You will be responsible for the code upgrades.

things to consider

THINGS TO CONSIDER DURING THE REBUILD PHASE

Often a homeowner finds an opportunity to improve their home at the same time. If you choose to upgrade your home, we will gladly do that work too. We utilize Xactimate 27 software to determine the cost for upgrades. On upgrades that exceed $2,000 we request a Remodeling Agreement be signed to clearly define our obligations to each other.

The bottom line is that although stressful and disorienting, the insurance company and Levco are working for you. We will be helpful and understanding, compassionate and thoughtful. Going out of our way to accommodate special needs is common. At Levco Builders, we like to leave the home better than we found it.

We've got you covered

We offer a service to our clients that is occasionally misunderstood. Folks rarely have insurance claims on their homes so it is essential that you understand what is happening and  how things typically work, lets face it this is stressful. The way I look at home disasters be they water related, fire related, or other (which can mean a lot of things) Everyone is interested in getting things back to normal. From your insurance agent to the contractor and everyone in between. OK the unthinkable happened and it is beyond your ability to fix it with a sponge and a pale. Or say a huge tree lands on your home or tears off your power meeter and mast, you name it, the first thing to do is admit there is a problem and that you need help fixing it or returning your home to normal. The second thing is to contact your insurance agent or the companies hot line. Establish a claim and get help on the way. Just making contact can provide much needed advice and the comfort in knowing the cavalry is on the way.

Tree on House

There are two parts to most insurance claims. The Mitigation and the Rebuild. Having a claim is not an opportunity to make some money…it is an unfortunate situation that for whatever reason screws up your routine and can turn your life upside down for awhile, the measure of and insurance company and those that put your place back together is how well they understand this and do everything possible to accommodate you while you are down.

MITIGATION: The mitigation phase is when things are torn apart and dried out. Once the problem is fixed and the place is looking like a disaster area,. Once the Mitigation phase is over and the “disaster clean up” part is done, you may have Sheetrock off the walls, floors ripped up, dehumidifiers and fans gone. That contractor gets paid keep track of receipts and submit them to your adjustor.  According to the EPA lead safe work practices are not necessary during emergency work. Be aware you and your family may be at risk in homes built prior to 1978 homes so you may want to remove yourselves from the home during this phase, especially if demolition work is being done and children under 6 years old (who are most susceptible to lead paint dust) are present.

REBUILD: This is a delicate time when the Insurance adjustor arrives and draws the home and gets and inventory of items and provides an estimate/ bid of what they will pay to get the home back to the way it was prior to the claim. Remember the cause of the claim is not covered. You have a choice here, you can be your own contractor and fix the home yourself, or you can hire a contractor to fix the home. I do not recommend that you use the same clean up folks to fix your home! A remodeling contractor is the best suited for this work. If you do the work yourself you will be reimbursed at a different rate (Less than a remodeling firm) When I accept a project i do it for the amount of the entire claim and the deductible that has been predetermined by the adjustor. This insures that the work is done professionally and completely. There will be no out of pocket expenses beyond your deductible and fixing the cause of the leak for instance. Lead safe work practices are required on all n pre 1978 homes unless testing proves that there are no leaded components, or areas below De minimis* levels are only being effected during rebuild.

UPGRADES: If you decide to upgrade while the kitchen is torn apart or have us do work that is outside the scope of rebuilding your home as a result of the cause of the loss, we use the same program that the insurance company used and create a bid or just do the work and produce a bill. We treat all claims over $2000 just like a typical remodeling project and have you sign an remodeling agreement. If you choose not to fix something or fix part of the loss yourself, we credit you for the work we did not do. Things we find like code upgrades that need to be done or underlying hazards are addressed separately with everyone involved.

* De minimis (Latin for the minimum requirement) This is a description used by HUD and EPA to determine a level below which Lead Safe Work Practices are NOT required despite the presence of lead. EXCLUDING Window replacement, demolition, and prohibited practices. Less than 10% of a small component IE: windowsill baseboard or trim  HUD Interior: Less than 2sf per room EPA Interior: Less than 6sf per room HUD & EPA Exterior less than 20sf