Understanding Your Insurer’s Statement of Loss

Sep 15, 2020Repairing

A statement of loss or proof of loss lists the damaged items that your claims adjuster found in your home after a disaster. This is the estimate; it is not the final document that will inform you of the final amount you’ll be expecting on your check, which you will use to pay your roofer.

Here are some pointers to help you understand the estimate you receive when you file your insurance claim:

Make Your Own List

When it’s safe to go out and assess the damage to your home or business, document what you see with a camera. Take photos and videos. While you’re at it, make a list of all the things you find that have sustained damage.

Meet With the Adjuster

When you call the insurer, they will send an adjuster to assess the damage and list things down that the insurer is supposed to cover. Make sure you’re there to receive the adjuster. In most cases, the adjuster would prepare the proof of loss and hand it to you for your review right after the inspection. In other cases, you will receive it in the mail.

Review the Statement

Review the statement of loss carefully. This is a list of all the damaged goods with an estimate of the cost to replace them. This is called the replacement cash value (RCV).

You will also find the depreciation. This is the amount that’s held back until your roofing contractor and other contractors have finished the repair or replacement.

Then there’s the estimated actual cash value AC(V). You get the ACV by deducting the depreciation and the estimated cash you’ll get for the repairs from the RCV.

Get Estimates From Contractors

Before your actual claim is processed, you have to get some estimates from contractors or stores. These estimates are your proof of the value of the replacement or repair, and you should give them to your insurer. Upon your claim’s approval, you should find that the depreciation has been adjusted so now it shows the actual costs of repair or replacement. You should receive a check to cover the adjusted costs.

Additional Notes

When you receive a statement of loss, note that this is only an estimation and not the actual cost. Your estimates from companies and stores should result in changes in the estimate from your insurer.

You are free to hire a public adjuster to advocate for you if you have serious doubts about the insurance adjusters list. Note, however, that the public adjuster will ask for a cut from your total settlement.

Do not delay this process. After receiving your statement of loss, move immediately to get estimates, and return the statement to your insurer before your set number of days is up.

Home Remedy USA is a trusted roof replacement and repair company. We can help you with your insurance claim process. Call us today at (828) 222-0706, or fill out the form on our website to get a quote.