Even though contracted repair projects like storm restoration work roofs can take as little as a few days, the insurance process and submitting supplements can take weeks.
Have you wondered why the insurance supplement process takes so much longer?
Or how to submit supplements during a home repair project?
Then you’re in luck because we’re answering a few common questions about the insurance supplement process below.
Insurance supplements are what needs to be changed after an insurance adjuster’s original claims. These can be items that the adjuster overlooked or admitted or other charges that have developed since the work began.
When a contractor or homeowner discovers these components, they must submit a supplement. This is done to recover the difference between the estimate and the true cost. A supplement ensures that the job is done well and the contractors are paid fairly.
One type of home repair that is frequently discussed for supplements are roof repairs, so we’ll use it for an example. Still, it’s worth keeping in mind that any project that requires an insurance adjustment could also be eligible.
In this instance, especially if the roof has undergone weather damage, time is of the essence. If after an inspection it is deemed that repairs or a replacement is necessary, a claim will be filed. Depending on the severity of the storm and the size of your area, you’ll then get an inspection meeting with a roofer and an insurance adjuster.
Once the insurance company accepts the claim, you’ll likely receive a loss statement and the first check within two weeks.
Or rather, your mortgage company will first receive the check to endorse it. Depending on the size of your mortgage company and whether it’s local or national, this can take up to 10 days. While this step is in place to prevent fraud or misuse of funds, it does create another step that can lead to delays in a project beginning.
In that time, your contractor will compare their estimate to the statement of loss from the insurance company. This is the first point at which supplements may come in.
If it seems that the adjuster’s original measurements are not correct and there are still components that need to be funded, a supplement will be sent for review.
Depending on the availability of the claim handler, this can delay the beginning for another week or two. However, even with a small supplement, it is advisable (and often required) to wait until both the insurance company and contractor have agreed.
In this waiting time, the rest of the project details can be decided on, including materials and colors.
When going through the repairs or completing them, it’s possible to uncover other damaged areas or reasons to request a supplement.
While it can be difficult to dive back in, especially considering the project is going, it’s important to make sure the work is done well and the contractors are paid fairly.
The timing of the release of these funds, if approved, depends on the availability of the claims agent. The decision to go ahead with the work is a call to be made between contractor and owner.
At this point, the contractor submits for recoverable depreciation and the final insurance check will be released.
This process can take another two weeks, along with the possibility of another 10 days for your mortgage company’s endorsement. One reason for this is that they may hire their own inspector to come see the final results of the repairs.
The process of submitting supplements is woven into the whole journey of going through a home repair. With that, there are multiple opportunities to request them and it can be a time-consuming and fraught process.
This is especially true for contractors who are dealing with multiple projects and don’t have the capacity to get to each project, get photos, make calls, and connect with the insurance carriers.
For help ensuring your projects stay on-budget and getting paid fairly, contact the expert team at US Home Supplements today.