All Forum Posts by: Jose Linares

Well done.  You mentioned networking with the right people.  How did you find the deal?

@Aasim T Bickiya make sure you are also getting quoted for Replacement Cost Value on the roof.  Some insurance companies have Actual Cash Value policies/endorsements to save you on the premium.  You don't want to get stuck out of pocket for the difference if you have a 10yr old roof, with a 20yr life expectancy, that requires replacement due to hail or wind damage.

I believe Oklahoma also has separate deductibles strictly for wind/hail, but it's been a while since I handled claims out there.

@Kyle Kipka I agree with @Jonathan Bombaci. You will want to find a restoration general contractor that is familiar with your insurance carrier and their guidelines.  Have two companies bid the repairs, independent of viewing the adjusters scope & pricing.  This will give you a better idea of the true cost of repairs.  Choose the contractor you feel is the most capable and reasonable with the pricing.  Also, ensure they will handle the negotiation with the insurance carrier directly.  Unless you want to work on your negotiation skills, Chris Voss style.

The catch with personal lines (HO3, HO6, DP3) property claims is not that they are trying to low-ball you.  The problem you are running into is typically related to newer adjusters or high volume workload (30-40+ claims/month).  Since this is a first party claim, your policy should cover the cost to bring your property to back to pre-loss condition.  It is treated different than a liability/3rd party claim where there is one, full & final settlement. 

Just make sure you document everything thoroughly with photos, estimates, lease agreement, and emails/letters.  Feel free to DM with any additional questions.  

@Vincent Plant Was there visible mold identified prior to the contractor starting the demolition?  Was the demolition completed under containment?  Feel free to PM me to discuss further also.

@Rex Celle Those are all good options.  Some additional questions to help myself & others provide input:

• Is this single family or multifamily?
• How long you will your policy allow for loss of rents/business interruption?
• Have you consulted with a GC to confirm the timeline for rebuild?
• Will the rebuild be completed within the loss of rents/business interruption limits?

Would it make sense to rebuild, collect the loss of rents/business interruption through the course of construction, and 1031 Exchange the newly rebuilt property?

@Rex Celle  Are you dealing with a total loss or a partial burn?  If it is total loss, were the policy limits paid enough to rebuild?  

@Joshua D. Prior to spending the money on other items at the property, be sure to confirm with the roofer if the integrity of the roof was compromised by any of the damage sustained.  If insurance is covering the full replacement of the roof, or even partial, and you were considering replacement in the future... it would be best to move forward with the replacement at this time.  

Insurance will pay Actual Cash Value (ACV) up front and withhold depreciation until the repairs have been completed.  Depreciation is based upon age, condition, and useful life of the roof.  For example, 15yr old roof with 20yr composition shingles may have up to 75% of the Replacement Cost Value (RCV) withheld until the repairs are completed.  You would submit your receipts once the repairs are completed to recover the RCV.  However, some policies are ACV only.  So double check with your agent/adjuster.

There are two catches if choose not to have the repairs completed:

1. You will not be able to recover the depreciation withheld.
2. Without proof of repair/replacement, you may not be able to make a claim for the roofs in the future.

If you are able to have the repairs completed for under the ACV settlement, you will not have to return any additional funds.  Just be sure to keep the receipts as proof of repair/replacement.

Hope this information is helpful.  Let me know if you have any additional questions.

@Account Closed if you still need a referral for a Phase 1 ESA, send me a PM and I can send you a contact that can assist with your questions & clarification.

@Timothy W. I am sorry if you interpreted my profile incorrectly.  My profile does not state that I am currently a property adjuster.  It states "On my path from property claims adjuster to financial independence through real estate...." 

It is fairly clear that I work for a commercial property restoration company, as the company profile is linked & listed on my BP profile.  I am simply providing my recommendations from both sides of the insurance claims process to assist BP investors.  

@Les Jean-Pierre Typically, there is coverage for unauthorized repairs under the "vandalism" peril of your landlord policy.  However, they do often look for "malicious intent" when determining coverage.

Is the $7,500 a hard bid for the cost to replace the protective steel gates?  I would recommend obtaining estimates for the replacement of the steel gates & electrical panel work required.  Once you have those estimates, determine if they will exceed your insurance deductible.  If the cost does substantially exceed your deductible and would warrant a claim, ask your agent what the typical premium surcharge would be for filing a claim under vandalism.

Should everything line up to file a claim and you do have coverage for those damages, the insurance carrier will issue payment to you.  They will then pursue the tenant to recover any settlement issued and, hopefully, your deductible.

I hope this information is helpful.  Feel free to PM me if you have any additional questions.