What Does My Insurance Really Cover?

At Levco working with insurance companies has become a regular thing. Usually, things go well, but occasionally they go very sideways. We have used our vast experiences to share what we have learned. Here is how we handle insurance claims related to a Flood or Fire.

In most cases, the insurance company wants to work with everyone and get your home back together quickly. If they omitted something in their bid that is discovered after the fact, it is normally not a problem.

The number one issue Levco has had is related to owners having unrealistic expectations of their insurance carrier. Owners believe the insurance agency is going to remodel more than was effected by the disaster! This is a constant battle.

• The idea is not to profit from a disaster. If you had hardwood before for instance, and want tile now,  you must sign a remodeling contract with a bid for the additional work. We do credit the difference, but has led to huge misunderstandings.

The second most frequent problem is that home owners have no idea what is excluded. They walk around as if no matter what happens that “You’re in good hands” or “You have an umbrella over you.” That is clearly not the case.

Thirdly, you will always need to pay your deductible out of pocket. The contractor won’t ” work it into the bid”.

Finally, you do not need to get 3 bids. If you select Levco, we will rebuild for the amount the insurance company allows.

Issues we have had include, but are not limited to.

1. Occasionally adjusters disallow repainting an entire room. They will only do a ceiling or one wall of a room.
2. Mitigation contractors (the disaster service of choice) butchering up the place, way more than is necessary.
3. The mitigation contractors pushing to be the company that rebuilds the home. You are not obligated. You may use your choice.
4. You may do your own work, however you are reimbursed at a substantially lower rate.

Flood

Water problems. You are only covered by that which is caused by a domestic source. That means that you have to have something malfunction first, like a burst washing machine hose, or a toilet malfunction. If shingles blow off then you have a leak, OK, but not a worn out roof.

Exclusions include:

1. The malfunction that caused the flood. (You always need to pay for that)
2. External sources are not covered. (Unless you have federal flood insurance).
3. Having a rider that allows for code upgrades. Without it, things like hardwired smoke detector and upgrades to your electrical system, that are required will come from your pocket.
4. If the city system backs up into your home’s basement toilet, you need to get the city’s insurance carrier to take care of the bills. (This is not as easy as you might think)
5. If you are a renter, you are out of luck if you don’t have renter’s insurance. If your stuff is ruined in a fire, tough luck.
6. Although there is an exclusion for doing LSPW (lead safe work practices) in an emergency (during tear out and drying), a contractor must do LSWP in pre 1978 homes during the rebuild phase.

Fire

Fire and Smoke. In one case, a neighbor had a fire in a rundown home and the insurance company replaced all sorts of things.  In Boise, like most metropolitan areas, a total loss is rare, so do not expect your burnt home to get replaced.

Issues we have had include but are not limited to.

1. Mitigation contractors (the disaster service of choice) go crazy cleaning everything you own and in one case, running up a $12,000 dry cleaning bill.
2. Delaying the cleanup to hold the home owner hostage until they get the rebuild contract too.
3. When rebuilding, we are held to new codes. Frequently there are huge headaches with getting structures rebuilt in the same place or with like materials.
4. Detached structures are rarely covered for enough to replace them. Your contents are normally not the problem.
5. If you are a renter, you are out of luck if you don’t have renter’s insurance. If your stuff is ruined in a fire, tough luck.
6. Although there is an exclusion for doing LSPW (lead safe work practices) in an emergency (during tear out and drying), a contractor must do LSWP in pre 1978 homes during the rebuild phase

Mold:

Just a note, after speaking with my agent Brian Frechette of Farmers insurance in Boise. Mold has been excluded as a covered item for the past 10 years but there is some softening occurring. If there is mold as a result of a recent flood then the additional cost associated with removing it is possible that you are covered. The circumstances must be as a result of an acute loss. Again you need to check with your agent for specifics.

Levco has your back. We take care of  the rebuilding that comes after a disaster. We do it well, and we do it quickly. We understand the intricacies and we have the relationships with the adjusters in the area.

Insurance companies Levco has worked with so far:

Liberty Mutual Insurance

Farmers Insurance

Farm Bureau Insurance

Auto Owners Insurance

Formost Insurance

Oregon Mutual Insurance

Safeco Insurance

God forbid, if some disaster befalls your home, insist that Levco is your insurance related rebuilding contractor of choice.

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