Insurance Bill of Rights for Milwaukee-Madison Area Property Owners

Insurance Damage Repair Bill of Rights

Any property damage will cause stress. We find, however, that when property owners know what to expect during the insurance claims process – and what their rights are – the level of anxiety greatly decreases, and everyone is able to make better decisions. As Professional Restoration Contractors, we believe the public interest is best served if people have an understanding of their rights and the alternatives available to them when insurance damage and repair work are involved.

Your insurance policy is a CONTRACT between you and the insurance company. It entitles you to certain rights and imposes certain obligations. While each policy is different in terms of coverage, unless there is a specific exclusion relating to the terms, this Bill of Rights for Property Owners describes your basic entitlements.

Here are some of your rights and obligations under its terms:

1. You make take, and be fully compensated for, the cost of emergency steps to safeguard your property from further damage after a loss, even before your insurance claim is approved. Certain services like emergency board-up, roof tarping, and water extraction need to be started immediately, and you can hire a professional for those services without prior approval from the insurance company.
2. You are entitled to compensation for the fair cost of fully restoring your home to its pre-damage condition. However, the project scope estimate may include additional repairs for unrelated problems, code deficiencies, or prior damage, but your insurance policy may not cover those. Your contractor should specify which, if any, of the repairs will require out-of-pocket payments.
3. You are entitled to employ and should insist upon a fully licensed and insured restoration company with a good reputation.
4. You are not obligated to use the insurance company's preferred vendor. The repair contract and its performance are strictly between you and the contractor. As long as the company you choose holds the required licenses, your insurance company must participate in the project scope estimate process and provide the subsequent claim payout.
5. You are entitled to materials and workmanship fully equivalent to your existing installation in terms of like-kind and quality. The insurance company is not obligated to improve your existing installation. You may choose to upgrade your home as part of the restoration process, but you will need to pay any costs over and above "like-kind."
6. You are not required to accept the lowest bidder; however, repair rates should correspond to prevailing standards in your area for good-quality work. The best bid will probably not be the lowest; a reputable restoration company can prove that their estimate aligns with local standards.
7. You are entitled to receive a detailed listing of the scope of repairs and quantities of materials to be provided before work begins. We use the same estimating program as most insurance companies (Xactimate), so our work estimates are always transparent and clear. Provisions for hidden or latent problems related to the damage should also be spelled out in as much detail as possible.
8. You are entitled to and should reject any contract that does not address all federal, state, and local requirements for residential construction work. However, you must be familiar with these requirements to enjoy the law's protection. Ask an Industry Certified Restoration Contractor for this critical information.
9. You are entitled to select a firm that can demonstrate skill and experience in insurance damage repair as a full-time professional service. Ask for references, credentials, and association memberships that indicate professional training and status in insurance repair, as contrasted with ordinary home improvement work.
10. If a disagreement arises between you, the insurance company, or your restoration contractor (or any combination thereof), you are entitled to request arbitration to settle differences.
11. You are entitled to receive payment from the insurance company within the specified time stated by your policy and your state's insurance regulations. These regulations prevent insurance companies from using delay to compel a lower settlement. The policy also requires, however, the homeowner to submit the claim within a specific time period. Your restoration contractor will assist you in preparing your claim paperwork.

Tips & Tricks

Damage to your Milwaukee-Madison area home can be an extremely overwhelming situation for any homeowner. It can also be very difficult to know how to handle the situation properly. Water damage is one of the most common homeowner claims, so it's a good idea to keep a few common tips in the back of your mind if you find yourself with unwanted water in your home.

1. First Steps: The very first thing you should do in the event of water damage is locate the source of the water and ensure that the flow of water has been stopped. Cleanup can't happen if water is still actively pouring into the home. After the water has been stopped, it's a good idea to cut the power to the home if there is any standing water. Obviously, electricity and water can make a dangerous combination. If either of these tasks puts you at risk, wait for a professional. Finally, as long as it's safe, take as many pictures as possible before starting any potential DIY cleanup. You'll want to start cleaning immediately, but you'll also want your insurance company to see the damage's initial extent before any cleaning occurs. Once pictures have been taken and the area has been deemed safe, remove as much standing water as possible and set fans to begin drying.
2. Consider Volume and Source: If you're thinking about doing the cleanup on your own, you'll want to consider the volume and the water source. A tiny patch of clean water is usually something that can be handled in-house, but a basement flooded with sewage needs to be handled by a professional. It's important to remember that even small amounts of water can hide in cracks and crevices and within porous materials, creating the perfect breeding ground for mold and mildew if it is not dried completely. As far as the water source, if the water is grey or black, it should never be handled on your own. These waters contain contaminants that need to be cleaned correctly to ensure the safety of the home and everyone in it.
3. Call Insurance: If you've determined that the issue is beyond the scope of your ability to handle it, it's time to contact your insurance company. You'll want to find out what kind of coverage you have for the loss and what your deductible is. If you decide to file a claim, you'll be assigned an adjustor to handle it. Often, your insurance company will put you in touch with a preferred restoration vendor, but sometimes, they'll advise you to find one on your own.
4. Contact a Restoration Service: A restoration professional will be able to work directly with your insurance company and you to ensure the job is done correctly. A project manager or technician will assess the damage and help determine the most appropriate course of action. Standing water will be extracted, and drying equipment will be set up immediately so the damage doesn't worsen. Once everything is dry, unsalvageable materials will be removed, and everything else will be cleaned and sanitized to prepare for reconstruction.