The Ins and Outs of Reconstruction: Part 2
After emergency mitigation is finished, there is still more work that needs to be done to restore your home. The rebuilding of your home is called the reconstruction phase, this phase can be lengthy and confusing at times. That is why we have devoted two parts to our blog this month, we are committed to help you better understand this trying time.
As we continue the second part of our blog on reconstruction after a claim, we will look at ACV and RCV and what they mean to you. We will also discuss the paperwork involved during the process and your mortgage company’s involvement.
We introduced the terms ACV and RCV in our previous blog, but you may be asking yourself how they apply to your situation?
ACV and RCV what does this mean to you?
You are liable for the entire amount of the agreed upon price as well as any supplements that the insurance adjuster approved. Therefore, it is important to understand that your insurance company makes their payments in portions rather than as a whole.
Initially your insurance carrier may only disburse a portion of the agreed upon price of the work to be done on your home. This is known as the ACV payment and it is to encourage you to have a contractor do the work.
When the work is complete and you have signed a document to say that most the work is complete (known as a COS) then your insurance adjuster will release the amount of the agreed upon estimate that they have been holding back. This is known as the RCV or the hold back depreciation.
Speaking of paperwork, there is a whole lot of paperwork that typically is required during an insurance covered loss to your home. Be aware that without all paperwork that is required being signed by you and all owners of the property, your construction company cannot move forward on repairing your home.
No one likes paperwork but….
The faster you complete, sign and return the paperwork that is required by both your insurer and the company you hire the quicker you will be on the road to recovery of your pre-loss home and your time. Your construction company should be able to give you specific information on what is required.
Delays in signing and returning ALL required paperwork will simply mean that your loss drags on and on because neither the insurance company nor the company you hire to do repairs can close out your claim without your signature on required paperwork.
Your adjuster may put the mortgage company name on the payment check. Your mortgage company has a tremendous impact on the flow of money for your job. Our company offers this service and has a lot of experience in dealing with all the processes and procedures that the mortgage company requires.
Getting to the point of scheduling your work is more complicated that it may appear. Therefore, it is likely that there will be a gap of a few weeks out before the repair work on your home can begin. Each case is different so make sure you review the job schedule with your project manager to understand what you can expect.
At ServiceMaster Quality Restoration, we understand that you will be anxious to put this loss behind you and get your life back to normal. We can assure you that if you choose our company for your repairs, we will do everything we can to make the process a smooth and easy one. We will work with you the homeowner, agents and adjusters to make sure everything is taken care of and done to your satisfaction. Call us today at (704) 324-8528.