Insurance estimates can run dozens of pages of codes and abbreviations. You don’t need to be an estimator to find the most common problems, though. Here’s how to read one.
Start with the summary
The summary page shows replacement cost (RCV), depreciation, actual cash value (ACV), the deductible and the net payment. Check that the deductible matches your declarations page and that prior payments are listed correctly.
Check the rooms and areas
Estimates are organized by room or area: roof, elevations, kitchen, living room. Make a list of every damaged area and confirm each appears. Missing rooms are one of the simplest gaps to find.
Read each line item
Each line has a description, quantity, unit and unit price. Look for:
- Quantities: does the square footage of drywall or flooring match the room’s size?
- Remove and replace: does the line include removing old material, or only installing new?
- Related trades: painting after drywall, baseboards after flooring, detach and reset of fixtures.
- Roof extras: starter, ridge cap, drip edge, underlayment, steep and high charges.
Depreciation
Depreciation should reflect age and condition. Look for very high percentages on newer items, depreciation on labor where the policy may not allow it, and whether the depreciation is recoverable.
Overhead and profit
When a repair needs several trades coordinated by a general contractor, O&P is often appropriate. Check whether it’s included and, if not, why.
Compare with your contractor
Put the two estimates side by side by room. Mark the lines that differ and the reason: missing item, different quantity or different price. That comparison is the foundation for a supplement request or an appraisal.
If the gap is large, our appraisal payoff calculator shows whether appraisal is likely to be worth the cost.
Keep reading
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