Insurance... adjuster versus contractor estimate?

Question

Thanks to all those who have answered my questions about insurance so far...
I had a commercial building that was severely damaged in a fire, the adjuster made his inspection and his estimate is pending. Am I required to accept his offer, or can I get a separate estimate from a contractor and present this to the insurance company for payment?
Under what circumstances would I have no choice? From the looks of it, the adjuster will be offering me nearly $65K less than what a contractor quoted me.
Is the insurance payout negotiable, or is the adjuster the "end-all-and-be-all final determination?

Answer 1

You are certainly welcome to get an estimate from a contractor - but be sure it's broken down, for each area, all the materials, and labor.

Payouts are negotiable - to a degree. Your agent is likely to be able to do a better job getting the increase, IF you have the contractor estimate to back it up. Keep in mind, the contractor might have inflated labor costs, or maybe the adjuster accidentally left something out. In YOUR case, I wouldn't trust the agent to do this for you. And they'd probably refuse, anyway.

But the adjuster wants to get the building fixed fast, and properly. They're usually pretty easy to work with - you might want to have a contractor sit down WITH the adjuster, to go over the numbers on this. They should be able to come to a meeting of minds as far as how much the repairs will cost. Then it's just a matter of applying deductibles, possible coinsurance issues, etc.

Play nice with the adjuster, and they'll play nice with you.

Answer 2

I am an adjuster who specializes in commercial property losses. First of all, we try to be fair, but we are not going to pick up a hammer and fix your building. So..most of us encourage you to choose a contractor with whom to work to fix your building. We then negotiate the damages direct with the contractor, and once we have come to an agreement, we send you a copy of the finalized approved scope of repairs.

there are some contractors (and I'm sure insurance adjusters) who aren't fair. Contractors are, of course, in business to make a living. The more profit they make, the better they like it. So, he may be including things in the estimate which aren't really required or damaged. (such as complete new electrical if none was damaged). It is the adjuster's job to control the scope of repair (what needs to be done). It is the contractor's job to make sure that scope is as broad as can be.

Somewhere in the middle is where it usually works out. However, if you insist on standing on your contractor's estimate, and he won't move....then likely the adjuster will call another contractor who will write an estimate of repair. you may not like the second contractor.

So, the point is, don't get your back up. Let the adjuster do his job. Then, if you aren't satisfied, explain why, what is missing that should be paid for, and outline the costs by not one, but two contractors.

I think you will find the adjuster workable. Most are, within reason.

Answer 3

Everything is negotiable. Show the adjuster the estimates you got and find out where the differences are between your esitmate and theirs. You don't have to accept their offer, and you can engage a Private Adjuster (PA), however you should be forewarned that once you get a PA all transactions with the insurance company must go through that PA and you will not have the ability to accept or negotiate a deal without the approval of the PA. This also makes the insurance company more defensive and will cause them to strip down any services or support they are offering to the bare minimum specifically detailed in your contract. Plus the PA keeps a portion of the claim payment.

Answer 4

My first job was working for a big insurance company, in claims. I learned that insurance claims people who come out, talk to you, give you an estimate, can be ridiculous in their idea of what is enough to give you. When I had a small fire, in my own home, lately..........a man came, said he'd give me $200 as more of a nuisance fee than a real claims fee. I simply told him that he is a far better shopper than I. I told him, I KNOW that the flooring from the entry door, through the kitchen and into the playroom must be replaced.......as the hole was smack in the middle of all that. So, I told him that when he found the same type flooring that I have, that would be put down, paid for, labor and all, for $200,. to make sure he let me know. He gave in, at that exact point, paid me enough to do the entire flooring, put down, labor, everything I knew he OWED me, and had money left over. Do not be intimidated by insurance people. If your place was in good shape when it caught fire, it must be replaced to the same 'quality' it was before the fire. If it was old and not well done, THEN, the ins. man could give you a lot less than a new one would cost. If it was in decent shape, send in your contractor's estimates.........all of them...........do not sign or accept any money until you DO this. You deserve to have the quality of what you had, replaced, by a pro. Make certain that you DO!

Answer 5

The insurance corporation is to blame to place you back in pre-twist of fate situation. If the certainly restoration costs extra effective than what the adjuster expected, the insurance corporation is to blame for paying the version. that is why you get rates from shops and submit it to the adjuster. oftentimes, because of the fact the keep works on your motor vehicle, it properly-knownshows extra problems and finally end up costing extra funds to repair than the estimate. you're entitled to the better payout additionally. Many solid shops deal at as quickly as with the insurance corporation. Your ultimate wager possibly to flow with the aid of your own insurance corporation. in the event that they have a generic physique shops, flow there. Then, what they estimate is what your insurance corporation pays. Any extra gets immediately paid. Then, they turn around and bill the different social gathering's insurance corporation. you will initially might desire to arise with the deductible, however the different insurance corporation will reimburse you for it. as quickly as I had a difficulty reminiscent of yours, I purely took my motor vehicle to the section's premere bodyshop, which additionally occurs to be my insurance corporation's prefered save. They took care of each little thing, inclusive of the place of work work. I paid deductable, which I later have been given back.