Decisions Decisions: Insurance, Upgrades, Indemnity & More Considerations for a Homeowner.
Updated: Feb 1
The smartest thing one can do is understand how each of the players in your project are incentivized. A few questions to ask yourself and more things to ponder:
Quality or Quantity? How many projects is your restoration company currently managing on a monthly basis? Investors, shareholders and profit margins can force projects to be managed like a cattle train. Additional time spent on exacting detail can be a delay in "getting to the next job". Take a close look at the volume of business being done amongst your choices and qualify this against the attention to detail that you require.
Ask Yourself: Is your goal to try and make money on the project, or is your goal to restore your home with the best quality materials and labor? Homeowners may get caught up in the idea that if the "estimate" is under the amount of the claim, they will get to keep the difference. This becomes even more attractive when the insurance company deposits the proceeds into the homeowner's account. Rest assured, there is no situation where a homeowner will keep the difference should the insurance company overestimate the cost of your project. Regardless of your policy or what your agent may tell you, when the final work order is squared up between your contractor and your insurance company, the final cost of your project is on record, and they will recoup the difference. Ask yourself, "Did I get the highest quality materials and workmanship for my home, or did I just unwittingly help my insurance company reduce their cost at my own expense?"
Don't Follow Your Instinct, Follow the Money: Your insurance company is a "for profit" business. They are monetarily incentivized to do two things: 1. Collect your monthly premiums and 2. Resolve your claims as profitably as they can. Your restoration company (also a for-profit company) is the only other entity whose incentives are directly in line with yours. High quality materials, high quality labor, and high quality workmanship are more expensive and are in your best interest and ours. This is not so for the other party. Principles of economics state that it can be no other way.