How do insurance adjusters come up with amount to write a check for?

Question

I have had recent water damage to my home. My insurance company is several states away therefore they sent another company out to take pictures and measurements. Then they sent the pics and measurments to our insurance adjuster. He has came up with an amount but wont tell us, we have to wait and see if the lender decides to fix our home or apply the amount to our loan.The problem is this lender didnt see the damage first hand. The lady that came out didnt go under our house to see the damage to our subflooring. What if we receive a amount that wont cover the damages. Can we fight it or do you think they will give the correct amount to our lender. Also how would I know that the lender gives us fair treatment. They took the policy out but we pay the bill every month.

Answer 1

Do you have a "forced placed" policy?  This is where the lender buys insurance for you.  You have to wait until the carrier or lender contacts you.  You can call and ask for payment at any time.  To find out if you received a "fair" settlement you will need to find a contractor who does water restoration repairs. They will know what to look for as far as your damages go.  Your lender has nothing to do  with the settlement as this is the job of the insurance carrier and you.  If you are behind on your mortgage and the lender has purchased the policy in their name you many never see any of the settlement.  I think most states have laws pertaining to this.  You may need an attorney to help you get the money.  If you do not want to hassle with the carrier at all hire a public adjuster who will represent you and get you a fair settlement.

Good luck.

Answer 2

Yes you can fight it.  Do not cash the check, as usually cashing the check means everything is to your satisfaction.  Contact the insurance company (ASAP) and let them know of the problems that they didn't document.  If they won't fix it contact a lawyer.

Answer 3

you should get a couple of estimates, and that should let you know whether the amount they give you will cover the cost of repairs

Answer 4

You don't have to always see the sub-floor to know it's damaged. I don't always go under the house to see it.

The adjuster will write an estimate to repair the damage. The estimate will be broken down room by room. The prices are based on the going rate for materials and labor.  Most companies use a computer program that is based on a database that is updated quarterly.  Estimates are usually written using "unit cost estimating".  That means the square foot price includes labor and materials. You will see on the estimate what the adjuster is paying to have done.

The insurance company owes to go back with what you had. So, if you had a particle board sub-floor with vinyl over it - they will pay to go back with particle board and vinyl. However, you may decide to replace with plywood and tile. In which case, you would pay the difference in price. Also if your policy has deprecation - that will be shown as well. Your deductible will be subtracted from the amount of the estimate and you pay that to the contractor who does the repairs.

The adjuster giving you a number on the phone does not mean anything. You really need to see the estimate and give that to your repair person.

The adjuster that came out to your home was probably an independent adjuster. He photographed your home and scoped the loss. Then went back to the office and wrote the estimate and submitted that to your company. The independent does not have the authority to write the check. He sends the photos, estimate he wrote and his report to your company and they review it and issue the payment.

Unless your  home is a total loss - the lender does not usually apply the insurance payment to your loan. However, they will be on the repair check.  To get information there - call your lender - ask for their insurance department. They will have a department that handles insurance checks. Speak to the Representative there  and he will be able to tell you their process.