Tips to help your tornado insurance settlement goes smoothly, after your claim has been filed.
1. Make sure your insurance company pays you first, not a roofing company or contractor. Never sign over your insurance settlement check to a contractor.
2. Ask for an “advance payment” from the insurance company so you can mitigate, make temporary repairs and have money for additional living expenses.
3. Understand the scope of work and costs associated in your estimate of damages that the insurance company’s adjuster provides you. If they have not given you a copy, request one in writing!
4. When reviewing the repair estimate, look for the “10 & 10” on the totals page of the estimate. This refers to the standard 10% for overhead and 10% for contractor’s profit that is written into many policies and sometimes paid as part of the claim. Overhead and Profit (O&P) is a frequently disputed item. If the only portion of damage is your roof, be aware that your insurer may take the position you are not going to use a general contractor and refuse to pay the 10 and 10 profit and overhead. Check with the Department of Insurance in your state for bulletins regarding the wrongful withholding of overhead and profit on the payment of insurance claims.