The check will be based on the repair/replace cost of your home not the "value" of your home. The value of your home is the combination of the structure, land and landscape. The repair cost is the value less land and other things not burned. You can get a basic idea by asking a general contractor in your area what the square foot cost is to build a house (ie $150/sf...$200/sf) take that number and multiply it by the SF of your house. Always remember the SF of the garage if normally finished does not cost as much as the rest of the house. The LA building department values permits at the rate of $100/SF.
All parties who have a financial interest can be included on the draft issued to the insured. The check is typically not issued directly to the bank unless the house is in foreclosure or if the policy is a "force placed policy" which is can bee written on the house if the owner of the property fails to maintain proper insurance. Content money would never be issued to the bank directly if you are the policy holder. The banks interest is in the property not the contents. An HO3 policy is basically three policies combined into one form for simplification. The only portion of the policy the bank is additionally insured on is the building (cov A and B).
RCV is the replacement cost of the insured property. ACV is the actual cash value of the property and is determined by taking the RCV and subtracting depreciation (RCV-depreciation=ACV). You may have a replacement cost policy however the carrier may only pay the actual cash value of the damage until verification of the repairs has been provided and at that time you can recover your held back depreciation.
Some carriers have contractors they work with but they are not employees or owned in any way by the insurance carriers. In the State of California this would be considered a conflict of interest. There are "preferred vendors" who are pre-screened and pre-qualified in regards to licensing and insurance who work with your carrier and often they are fine to work with but you should always always always verify any contractor yourself. You often have a lot of leverage with these types of contractors because basically you can always hold the carrier responsible if they don't perform well....which brings us to the carriers who don't refer contractors for that single reason. The staff adjuster or independent adjuster assigned to your claim will work with whatever contractor you hire as long as they are replacing with like kind and quality and are within industry standards in regards to pricing. If you sign a contract with a licensed contractor whether it's your own or a preferred vendor, their name may also be included on the draft issued to you.
IF YOU HIRE THEIR CONTRACTOR, SPECIFY TO THE ADJUSTER YOU WANT THE JOINT CHECK WITH THE CONTRACTORS NAME ON IT ISSUED TO YOU OR YOUR BANK. The best way to control a contractor is to control the funds. Your bank will basically act as an escrow service for the funds of the project and you and the contractor will have to provide proof of repairs before the funds are released.
I do not know of any insurance company who provides "project managers" to any claim. The carrier may employ engineers, construction consultants, contents consultants, or any other expert they may need in order to reach a settlement with you. The key is to work with your carrier...if you feel like you aren't getting treated well go tot he adjuster's supervisor...then to their supervisor...don't jump right to hiring a Public Adjuster as you can always hire them at any stage of a claim. Just make sure you understand how they are paid and exactly what they are going to do for you. Make sure you understand what their contract says about which contractor you can use for your repairs. Public adjusters are very helpful but it comes at a price.
Hope that was helpful.
All parties who have a financial interest can be included on the draft issued to the insured. The check is typically not issued directly to the bank unless the house is in foreclosure or if the policy is a "force placed policy" which is can bee written on the house if the owner of the property fails to maintain proper insurance. Content money would never be issued to the bank directly if you are the policy holder. The banks interest is in the property not the contents. An HO3 policy is basically three policies combined into one form for simplification. The only portion of the policy the bank is additionally insured on is the building (cov A and B).
RCV is the replacement cost of the insured property. ACV is the actual cash value of the property and is determined by taking the RCV and subtracting depreciation (RCV-depreciation=ACV). You may have a replacement cost policy however the carrier may only pay the actual cash value of the damage until verification of the repairs has been provided and at that time you can recover your held back depreciation.
Some carriers have contractors they work with but they are not employees or owned in any way by the insurance carriers. In the State of California this would be considered a conflict of interest. There are "preferred vendors" who are pre-screened and pre-qualified in regards to licensing and insurance who work with your carrier and often they are fine to work with but you should always always always verify any contractor yourself. You often have a lot of leverage with these types of contractors because basically you can always hold the carrier responsible if they don't perform well....which brings us to the carriers who don't refer contractors for that single reason. The staff adjuster or independent adjuster assigned to your claim will work with whatever contractor you hire as long as they are replacing with like kind and quality and are within industry standards in regards to pricing. If you sign a contract with a licensed contractor whether it's your own or a preferred vendor, their name may also be included on the draft issued to you.
IF YOU HIRE THEIR CONTRACTOR, SPECIFY TO THE ADJUSTER YOU WANT THE JOINT CHECK WITH THE CONTRACTORS NAME ON IT ISSUED TO YOU OR YOUR BANK. The best way to control a contractor is to control the funds. Your bank will basically act as an escrow service for the funds of the project and you and the contractor will have to provide proof of repairs before the funds are released.
I do not know of any insurance company who provides "project managers" to any claim. The carrier may employ engineers, construction consultants, contents consultants, or any other expert they may need in order to reach a settlement with you. The key is to work with your carrier...if you feel like you aren't getting treated well go tot he adjuster's supervisor...then to their supervisor...don't jump right to hiring a Public Adjuster as you can always hire them at any stage of a claim. Just make sure you understand how they are paid and exactly what they are going to do for you. Make sure you understand what their contract says about which contractor you can use for your repairs. Public adjusters are very helpful but it comes at a price.
Hope that was helpful.
