How “Bids” Work Against You

The truth about “bids” is that they actually work against you when it comes to your homeowner insurance claim.

First and foremost, understand that insurance companies pay claims in two or more payments. The insurance company assigns a dollar value to your claim called the Replacement Cost Value (RCV). From this RCV, they will deduct your out-of-pocket deductible. The first disbursement of funds will be less than the full RCV, an amount called the Actual Cost Value (ACV). Once the work to your home is near completion, there’s a second payment of Depreciation or hold-back money. (Total Claim RCV = ACV + Depreciation + Deductible) The Depreciation will NOT be paid in full if your contractor gave you an under-cut bid. Instead, if you shop bids and receive one that is less than the RCV, the insurance company will simply reduce your total disbursement. In the meantime, the bid roofer will surely cut corners to do the job for less. It is a misnomer that as a homeowner you will receive all of the insurance money and then pay a contractor their lower bid while putting the rest in your pocket. Not only will you get a lower quality roofing system, you will not get any financial benefit from using the lowest bid.

Don’t stress… we are at your service. Together we will work to have all of the damage to your home addressed. When there is a large hail storm in a given area, insurance companies send teams of adjusters to those neighborhoods to write claims as quickly as possible. Due to such a heavy claim volume in a short amount of time, it is challenging for busy adjusters to identify all of the storm damage to your home. We can identify, document and negotiate all necessary items to fully restore your home. By maximizing the amount of your insurance claim, you are maximizing the investment into your home. Coming full circle, if you go with an under-cut bid, and you go with a company that does not understand how to get all of your damage covered, you are decreasing the investment into your home. Taking the time to make the right choice for your contractor will most certainly give you a great return on your investment.

Partnering with Cardinal Catastrophe Services, Inc.

Cardinal Catastrophe is an award winning leader in storm damage restoration insurance claims in southern Illinois. CardCat owner, Aaron Specht, and Big Troy have been rugby buddies since the early 2000s, playing with the local Oconomowoc Rugby Football Club. Aaron and Big Troy have joined forces to assist our neighbors in the Oconomowoc area with roofing and exteriors and storm damage restoration insurance claims.