HELP!!!
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Handling a homeowner’s claim can be difficult and confusing. Luckily, with a general contractor, you have a professional on your side to help during the process. The basic homeowner claim has specific steps during the process. Some may be adjusted during the process but fall under the same process.
NOTE: It is the homeowner's responsibility to try to mitigate damage once found. This may mean that the homeowner will need to hire a professional, such as a plumber or mitigation company to clean and prevent further damage. If you do not try to mitigate or prevent further damage it may be justification to deny part or all of a claim.
EX: If a pipe broke from a freeze, the insurance company expects that you try to clean up the water and prevent further damage.
The first step in the process is the insurance company determining coverage.
When you buy a home, you should have homeowner's insurance to cover unforeseen accidents. The signed contract between you the homeowner and the isnurance company is your insurance policy. This policy determines if it is a covered loss.
If you are unsure where your policy is contact your insurance company or agent and they should be able to provide a copy to you.
Your policy covers many common accidental events but nearly all insurance policy has exclusions. The most common of these are nuclear disaster, terrorist attacks, mold and flood (unless you have a policy addendum that adds a coverage).
It is your insurance adjuster's job to determine if it is a covered loss.
The second step of the process is the adjustment.
This process is when your insurance adjuster begins to calculate the cost for what they feel is reasonable.
Often, there are disagreements in the beginning between the insurance, contractor, and homeowner on what is the scope of work and what is affected. This is fine, take your time and listen to everyone’s reasoning.
This is often the MOST frustrating process. Many times, insurance companies do not send a representative to the property and requires that you or your contractor help by supplying measurements, photos and/or videos as evidence.
During this process the insurance is doing an investigation on what was damaged and what is reasonable to repair. The insurance is not going to pay to completely remodel your house because a minor damage occurred.
Sometimes insurance will send a field adjuster to your property to take measurements and photos to create a preliminary estimate. This can always be changed within reason in the future.
During this process it is a good idea to have selected a contractor you can trust and that you feel will help guide you through this process and explain things.
You want your contractor to be there when the adjuster investigates. Do not hand over money or sign with a contractor, unless you feel comfortable with how they will do the work and take care of you.
During this process there will be supplements. These are often when the homeowner or contractor disagree with the assessment of the isnurance company. This is when the homeowner or contractor present evidence such as measurements, photos, videos, or scientific analysis (ITEL reports, Eagle view measurements, Etc.) to the isnurance to state why something is damaged or why certain work must be done that the isnurance did not initially supplement for. Don't worry, this happens on almost every claim.
Once an agreed upon scope and price has been determined, this is when the buildback occurs.
Third step is building back your property.
This involves the chosen contractor actually doing the work you hired them to do. Repairing/rebuilding your damaged property.
You will work with your contractor to select materials, colors and set a timeline for expected work.
Note: Due to each job being unique and often times complex, many trades and materials may be needed to complete the work.
Depending on the scope of work, materials, and colors chosen; the timeline and process of what work is to be done when, may change. Please be patient and understanding.
The fourth step is, once work is completed in a satisfactory way,
You submit evidence to your insurance as proof of completion.
Insurance issues the final payment and releases all remaining depreciation.
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Selecting a contractor can be a daunting task. It takes an expert to restore or remodel your property and it helps to have the right specialist on your side. It is important to lay out your goals of what work needs to be done. Are you remodeling only a portion of your house or rebuilding the entire interior? Is it an isnurance job and you need a specialist to help you in the insurance process? Is there specialty work that requires special licensing? These are the kinds of questions you need to ask, before you select a contractor. After you know what type of work is needed, it's time to research your contractor.
Web search engines will be the best bet. It will give you an idea of what type of work the contractor does and if they have good reviews and a good standing in the community. We always recommend using a local contractor in Colorado. There are many special considerations in Colorado that only those experienced in building within the state have experience dealing with.
THE GOOD
Licensed and Insured.
a. It is important to make sure that your contractor is licensed and insured to do business in your area. Although, smaller jobs may not require licensing. If you are unsure, you can always check with your local building department to make sure if the contractor needs a license/permit for the work. Some contractors also do a system of "Doing Business As." This is where the contractor works under a different contractor’s license and have an agreement with each other for this work.
b. However, It is MOST important for your contractor to be upfront and clear with what work they can and can not do. If they don’t know, then it is not a good idea to use them.
Written Estimates.
a. Any contractor that is going to do work for you should be able to give an estimate for the work. Depending on the scale/complexity of the work, it may take time for the contractor to create the estimate. When it comes to isnurance work, insurance companies normally require a detailed and itemized estimate that can be very long, but this is what insurance requires.
Are they attentive?
a. A good contractor will be attentive to your needs. They will ask you questions and explain the process to you. If they are not asking you about any questions or concerns you may have, then they probably wont be attentive during the process.
Communication.
a. Do they communicate clearly about their work and what they can and cannot do? Do they give you timelines on when work will be completed? Can they explain the process to you and relay your responsibilities to you? All of these are things a good contractor will do during the whole process.
THE BAD
Decisions.
a. Did you feel pressured that you had to make decisions immediately, without any consideration? Did they decide materials and colors without consulting you first? These are things a bad contractor will do.
Contract.
a. Did you and the contractor sign a contract? A good contractor is not afraid to sign a contract with a client and is prepared with one when they arrive. You may not sign immediately but they are prepared to set an agreement that they are willing to do the work and that you are willing to work with them. A good contractor is not afraid to walk away from the job if you refuse to sign. Do note that you should not sign multiple contracts with multiple contractors for the same work. This can create a conflict and legal issues in the future. Also, the contract can be used to keep bad contractors away. Simply tell them, “I have a signed contractor already.”
b. This contract should give a brief description of what the work will entail. Lay out the basic process of the construction. It should have basic language, stating that the two parties want to work with each other currently. It should have some form of an escape clause.
Lien Waiver.
a. At the end of construction, a bad contractor will not have you sign a lien waiver, a good one will. When work is completed, the contractor will sign a lien waver stating that they will not put a lien against the property once fully paid. In Colorado, it is very easy for a contractor to put a lien against a property, and it can have negative consequences in the future.
THE UGLY
Misrepresentation.
a. Did the contractor lie to you about who sent them? Did they falsely state that the city/county/insurance stated you must use them? You, as the homeowner, always have the choice in what contractor you would like to use. No insurance company, city, county, HOA, or other officials can force you to use their contractors to restore or rebuild the property you are responsible for.
Out of State.
a. Although, a contractor from out of Colorado may not be a bad contractor, it is important to ask them questions. For example, If they have ever done work in Colorado? Colorado has many codes that vary greatly from county to county or even over a certain geographical line. If they do not understand this, then do not use them. If they do not understand that some materials can not be sourced from sea level since they can break at altitude, do not use them.
Reviews.
a. It is important to read reviews. Every business will have bad reviews and disgruntled customers, especially in complex work such as restoring a property after a loss, but if they have more bad reviews than good ones, you should probably stay away.
100% Down Payment.
a. Most contractors will ask anywhere from 30- 70% down payment depending on the work being done. This is to order materials and make sure that they are not completely out of pocket for the work in case a bad client decides not to pay. They are a business after all. But, if a contractor forces you to pay 100% up front, then they are probably not a good contractor. Especially, if you don’t have a signed contract showing that they plan to do the work.
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Water is unique in that it is one of the few liquids that expand when it freezes. This expansion is what causes your pipes to break when the weather gets too cold. No matter what material your pipes are made of they are susceptible to breaking.
Most likely pipes to freeze:
Outdoor pipes exposed to subfreezing temperatures such as, hose bibs, sprinkler supply lines and pool supply lines.
Supply lines in unheated parts of the home, such as unfinished basements, crawl spaces and attics.
Pipes in exterior walls that are not properly insulated.
How to Protect Pipes From Freezing.
Drain the water from any water systems you can, sprinkler systems and pools. Follow manufacturer instructions and do not add any additives, unless instructed by the manufacturer. Many additives are toxic and harmful to the environment (You don’t want to spray something that could harm plants or animals by mistake.)
Remove your hoses from the outside bib/faucet.
Close the valves inside the house that feed to the outside of the house. Hose bibs/faucets, sprinklers, pools, etc. Leave the valve that is outside open, so water can expand and not break the pipe.
Think of adding insulation where pipes may freeze. You may want to add insulation to your crawl space or attic. Wrap the pipes to your sprinklers with foam or other insulation.
How to Prevent Frozen Pipes.
Keep your house warm. Do not set your heat below 55 degrees Fahrenheit or 12.8 degrees Celsius even when away for extended periods.
Keep outside doors and windows closed. Ex. the garage door or a window to the attic.
When temperatures drop to extreme levels and there is no power or heating to your house, then let cold water drip from the faucet. This allows water to flow and allow for some expansion in the pipes.
How to Thaw Frozen Pipes.
Keep affected supply lines at least partially open. So, open your faucet to allow a drip or trickle.
Use safe tools to thaw the pipe directly such as a small space heater, heating blankets, blow dryer or heat gun. Always follow manufacturer instructions with these tools. Be mindful of where the power to the tool is coming from and wither the tool or power cable will get wet. Be mindful of any flammable, or toxic chemicals or materials when thawing your pipes (do not set the house on fire because you left a blow dryer next to flammable cleaning chemicals).
Do not use open flame devices such as, blow torches or welders.
Apply heat slowly and continually until the pipe is fully thawed.
If you can not thaw a pipe, call a certified plumber or remediation company to help.
Check your other water supply lines in the house. If one froze, then it is probable that others would have frozen as well.
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Wildfires are a unique danger that comes to the American West. They can be devastating and unpredictable. This is due to the fact that wildfires are affected drastically by weather, and they affect the weather at the same time. What was once a small wildfire can quickly jump across mountains, valleys, and fields with an unfortunate gust of wind. Where once you and your property were safe, can quickly change and you may be forced to evacuate at a moments notice. Therefore, preparation is key.
If a wildfire happens, the most you can do is prepare. If you aren’t prepared, things become a lot worse very quickly. If a wildfire bears down on your family or property, there is nothing you can do unless you are prepared. There is no fighting a wildfire. There is no waiting it out in your home. You cannot weather the storm if a wildfire is coming to you or your property. There is nothing else you can do, but be prepared and stay calm.
PREPERATION
To protect your house, it is important to make sure your house is made of Class A- rated roof and exterior surfaces made with noncombustible materials. You do not want any part of your exterior to have flammable materials. ( even that "Welcome" sign on your front door.) You don’t want that nice greeting on fire against your door or any decorations on your siding on fire for a prolonged time. Though this may not be solvable all at once, it is important to consider upgrades as soon as you can to protect your investment.
It is important to manage your landscaping as well. You want to keep a 30-foot barrier around your house. This means you should reduce or remove flammable vegetation within 30 feet of the home. Though that untrimmed gamble oak looks pretty next to your house, it is a huge hazard if a wildfire came through your neighborhood. Use hard nonflammable landscaping materials such as stone, brick, and concrete close to the home to create a fire barrier. This also means regular maintenance of your landscaping. Trim and remove debris at least yearly to keep dried flammable material to a minimum.
It is important to keep necessary materials for your home on the property but be smart. Do not stack all that firewood you plan to burn against your house, in case a wildfire happens. Any extra building materials or materials for hobbies that are flammable should be stored away from the immediate exterior of your home. You want that 30 foot barrier around your house as a mote against fire.
Make sure you take a video/photo walk through of all the rooms, closets and storage spaces of your home taking inventory of all the personal property in your home YEARLY. Take particular attention to large and expensive items such as electronics, appliances, jewelry and antiques. This way, if a wildfire breaks out and your insurance needs proof of what you had in the home you have it. All the little things add up and if you do not have proof of them being in the home they may not be covered. Also, don’t think that just because it is “nonflammable” material that the personal property will be fine. Once fire is trapped inside an enclosed space and multiple materials and chemicals are burning, even a metal safe can melt or cement foundations can crack.
Review your isnurance policy. If you live in an area prone or possibly affected by wildfire you should make sure you are properly covered. You want to make sure you have enough coverage to buildback your house but also to restore all the personal property in your home.
WHEN WILDIFRES HAPPEN
When a wildfire occurs in your area the first step is safety. That means STAY CALM. Panic is the enemy in these situations. Don’t be loading your car up with personal property in a panic and between loads you lock your keys in your car/home and everything comes to a stop. This happens often and emergency services may be too overwhelmed to help you.
If you know there is a high likelihood of a wildfire moving into your neighborhood, and you have a large amount of time to prepare think about moving expensive valuables away from the property ahead of time. Move those family photos, electronics, collectables or spare cars to a storage unit or a friend/family members’ homes ahead of evacuating.
Know what you NEED to leave with and where you are going in case of evacuation.
Be prepared. An ounce of preparation will save you in the long run. If you know of a wildfire and the potential of your home being affected start preparing. Call friends and family and ask if you can stay with them in case you have to evacuate. Review your credit card rewards you stored up and look at nearby hotels. Call your insurance and ask how Additional Living Expenses may be used if you're forced to evacuate.
Get a “go bag” ready. There should be a bag for everyone in your family. The bag should include enough cloths for a week, important documents such as, social security cards, birth certificates, and passports. Gather up items that are personal and non-replaceable. The family photos you’ve been meaning to digitize are more valuable than your TV. Prioritizing electronics that you use daily, or your lively hood necessitate. That means your computers with your emails, passwords and photos are more valuable than the extra monitor attached to it. If you have a desktop computer grab the actual computer, not the screen or keyboard/mouse; those are useless without the actual computer that stores and processes everything.
Once an evacuation order is issued you do not want to be wandering around your house looking for these items. You want them ready to be loaded up and you want to be ready to leave in a moment’s notice. If you delay in evacuating, you could put you and your family at serious risk. If you have an evacuation order everyone else around you has evacuation orders and all of you will be leaving on the same streets at the same time and will cause traffic issues. Most neighborhoods that are likely to be affected by wildfires generally have one or two access points. With emergency services coming in and hundreds of people trying to leave at the same time is not a good recipe for speed.
STAY SAFE
Ask your local fire department if they do a “pre fire plan” for your home. They often do this for free and it can help them fight the fire and can give you a guideline on what you may need to do to best prepare your house in case of a wildfire.
I shouldn’t have to say this but...
DON’T FORGET YOUR PETS OR KIDS! They will be scared, and they may hide under a bed or in a closet in such an emergency. Make sure you have all of them before you leave.
Just remember to stay calm, stay safe, and don’t forget your family.