Insurance claims, explained properly

How a claim runs, and who does each part

1. 01 Stop the damage getting worse

   Safeway

   Emergency mitigation comes first and does not wait for an adjuster. Extraction, drying, containment, boarding up. Most policies require the homeowner to prevent further damage once they know about it, so acting quickly protects the claim as well as the building.

2. 02 Report the loss to your insurer

   You

   You open the claim — it is your policy, and insurers will not take a first notice of loss from a contractor. You will be given a claim number and, usually, an adjuster. Tell us both as soon as you have them and we work to them from that point.

3. 03 Document what was there before it is gone

   Safeway

   Photographs, moisture readings, affected materials, room dimensions, and where laboratory results apply, the results themselves. Demolition destroys the evidence a claim rests on, so this happens before anything is removed rather than being reconstructed afterwards.

4. 04 Price the work the way an adjuster reads it

   Safeway

   Line by line, each with its unit and quantity, priced per square foot or linear foot rather than as one unexplained figure — with overhead and profit shown as their own lines, and replacement cost, depreciation and actual cash value stated separately. An estimate an adjuster can check line against line is one they argue with less.

5. 05 Deal with the adjuster directly

   Safeway

   Scope disagreements are normal and are usually about what the work involves rather than about money — whether a wall has to come out, how far the moisture travelled, whether a material needs testing. We would rather have that conversation with your adjuster than have you relay it.

6. 06 Decide what is covered

   Your insurer

   The coverage decision is theirs, not ours and not yours. We can document thoroughly and price defensibly; we cannot tell you what your policy will pay, and any contractor who says otherwise is guessing about a decision they do not make.

7. 07 Do the work, and invoice against the approved scope

   Safeway

   Restoration, then rebuild if you want the same crew to finish it rather than handing you to a second trade. The final invoice matches the approved scope, with any change documented as it happens rather than appearing at the end.

The five numbers a claim is settled on

The first cheque is often smaller than the estimate, and that usually means money is being held back rather than refused. Knowing which is which is the difference between a claim you can follow and one that feels like it is being done to you.

Replacement cost (RCV)What it costs to put it back

The full cost of the restoration at today's prices, before anything is deducted. This is the number the estimate is built up to, line by line.

DepreciationAge and wear on what was damaged

A fifteen-year-old carpet was not worth what a new one costs. Insurers subtract that lost value, and the amount depends on the material's age and expected life rather than on anything the contractor decides.

Actual cash value (ACV)Replacement cost minus depreciation

Usually the first payment. It can look like an underpayment when it lands, and it generally is not — the rest is being held back, not refused.

Recoverable depreciationThe held-back part, released on completion

On a replacement-cost policy, the difference between ACV and RCV is typically released once the work is finished and invoiced. On an actual-cash-value policy it is not. Which one you have is written in your policy and worth checking before the work starts, not after.

DeductibleYour share

The amount you pay regardless. It comes off what the insurer pays, not off the cost of the work — so it is money you owe the contractor rather than a discount. Anyone offering to make your deductible disappear is proposing insurance fraud, and it is your name on the claim.

What our estimates look like

Common questions