Do You Have Enough Insurance Coverage?

3/29/2019 (Permalink)

This homeowner suffered multiple losses during the extremely wet fall.

As the Sales & Marketing Representative for SERVPRO of Spencer & Iowa Great Lakes I have the opportunity to travel much of northwest Iowa and southwest Minnesota visiting business owners, insurance agents & adjusters, and realtors.  During my travels I had one of my clients ask me an excellent question to ensure he was providing proper guidance for his insureds when offering Sump Pump/Sewer Backup coverage. How much coverage is enough coverage when dealing with a water loss?

Variables to Coverage

Through my time with SERVPRO I have had the opportunity to not only get in on the sales side but also the restoration side of the business.  During storm events I trade in my dress clothes for work clothes and get myself dirty with the rest of the team.  This has offered me the opportunity to speak knowledgeably to those that I speak with.  

When presented with the question, I gave the agent the clearest answer I could provide... depends on the area.  Clear as mud right?! 

The fact of the matter is, the average water restoration job, before reconstruction, will run the homeowner $3000 - $5000.  That number can be higher or lower depending on how much water is involved, what the scope of the job entails such as flood cuts or carpet removal, and how many contents we are working around when doing the restoration.  The more contents, the more water, the higher the cost.  

The cost can fluctuate as well depending on how long it takes to dry the structure and contents.  We work diligently to ensure we are not incurring more charges during the restoration process.  

Things to Discuss

When speaking with your insurance agent on the amount of coverage you should have for your home or business make sure you are considering the big picture.  

For starters, you have the initial $3000 - $5000 for the restoration.  Next you need to consider both the reconstruction and replacement costs.  For low cost carpet and pad installed your cost will be roughly $1500.  Factor in the additional materials and labor needed to bring your structure back to normal such as drywall, doors, paint, trim, etc.  

The market that this agent covered offered some of the highest priced homes in the region which means his average cost will be much higher than the remainder of the region.  It is important to consider the value of your home, the replacement costs for building materials and contents, and if you want it back to its previous condition.  

My advise to him was to approach the discussion from that angle with his clients and start with a minimum of $10,000 in coverage rather than $5,000.  

The SERVPRO Factor

He and I also discussed how working with SERVPRO can help save he and his clients money in the long run.  

At SERVPRO of Spencer & Iowa Great Lakes we offer restoration and reconstruction services.  Which allows the agent and home/business owners to have the peace of mind that the job will be done right the first time and that we know the scope of the job from start to finish.  We ensure to dry your structure and contents efficiently to save on cost leaving you the opportunity to carry about your every day life "Like it never even happened."  

If disaster strikes call the team that's faster to any disaster...SERVPRO of Spencer & Iowa Great Lakes

712-262-4379