Notes from a Remodeling & General Contractor for the Wichita, KS Area
Home insurance claims can be confusing, especially when combined with the stress and inconvenience of home repairs such as fire restoration, roof replacement or water damage renovation. Don’t let the insurance terms overwhelm you.
Seven Common Insurance Terms
As a certified contractor for multiple insurance companies in the Wichita, KS metro area, we have experience navigating the insurance claim process. Understanding some common insurance claim terms is a great starting point to make the situation less daunting. Here are seven common terms you may encounter when working through an insurance claim:
- First Notice of Loss – This is informing the insurance provider of a loss that is covered by your policy. This is typically done by contacting your agent and your agent will let you know if there is a formal process.
- Depreciation – the loss of value of an asset (i.e. roof, windows) over time due to age or wear and tear. For example, a 25-year roof could depreciate at four percent per year.
- Non-recoverable Depreciation – the amount of depreciation which will not be paid to the insured. For example, a $1,000 item with 40 percent depreciation, would be paid at $600. The $400 is the non-recoverable depreciation.
- Replacement Cost – the current cost to replace an insured item. If you have replacement cost coverage you can likely be reimbursed for the depreciation of the item. This is often referred to as reimbursable depreciation.
- Actual Cash Value (ACV) – ACV is calculated by subtracting depreciation from the replacement cost. Replacement cost is the current cost of the same item.
- Code Upgrade – required renovation or repairs for a structure to meet current building codes. Not all policies include this coverage.
- Supplemental Insurance – mortgage payment coverage as well as additional expenses if homeowners are unable to live in a dwelling due to a catastrophe.
Your Homeowner Policy
Understanding your homeowner’s policy is essential to making the best decisions for your home repair needs. Working with a Preferred Certified Contractor can simplify the repair process and save you money. Plus, there is the added knowledge that your insurance company also has your back, by having already set the expectations of professionalism and quality of work.
Looking for an Insurance Certified Contractor in the Wichita, KS area?
If you have experienced storm, water, or fire damage please call us today at (316) 262-6770. We are ready to help homeowners in the Wichita, KS metro area including Newton, McPherson, and Hutchinson with a free quote at any time!
If you have any questions regarding repairs, renovations or how to choose a contractor, please contact us!