Who Decides Whether You Should Rebuild Your Home After a Fire?

There are several things to consider when deciding whether a fire-damaged house should be rebuilt or repaired. If your house has been damaged in a fire, your insurer is likely to push you to settle for the lowest cost option; however, the bare minimum may not cover all your costs, or the amount may be less than what your policy promises. A builder specializing in design build in Sonoma County can help you understand your options.

Valued Policy Law

Local laws play an important role in determining whether a fire-damaged house will be rebuilt or repaired and are part of the essential questions to ask your custom home builder. One important legal statute every homeowner whose property has been damaged in a fire should know about is valued policy law (VPL).

California is one of the 20 states that have valued policy laws. This legal statute requires insurance companies to pay the full value of a policy in the event of a total loss; which means that in the event of a total loss, the actual cash value or ACV of the insured property won’t be considered at the time of the loss.

Understanding the Variables

These laws vary from state to state. While laws in some states address residential fire losses only, laws in other states (including California) require insurers to compensate policyholders for all losses covered by the homeowner’s insurance policy.

The valued policy law and other laws that govern the insurance industry override any policy language that conflicts with them. Some municipalities may refuse to uphold the law.

Professional Assistance

To avoid confusion and problems, work with a builder specializing in design build in Sonoma County to document your losses and ensure compliance with all state and municipal requirements.

Have a professional experienced in fire damage prepare a scope of loss. Working with a home builder can help you catch details you might otherwise miss. They will create a detailed report that contains important information, such as the nature and extent of damage and how much it will cost to restore the property to pre-loss condition.

Legal Protection

Some carriers will try every rule in the book to pay less than what they’re supposed to. If you believe your carrier is trying to minimize the payout, hire a licensed public adjuster to negotiate with the insurance company on your behalf.

The party that presents the most compelling proof, demonstrates the greatest intent, and presents the strongest arguments, decides whether the property should be rebuilt or repaired.

Do Your Research

Review your policy thoroughly to understand what it promises. In cases involving a total loss, arriving at a full settlement should not be a problem; however, when the scope is less obvious, you will need professional help to prove your claims.

Holly Construction – Rebuild Your Home With Us

Holly Construction is a premier construction company for design build in Sonoma County. We use tried-and-true methods designed to fast-track the rebuilding process so that you can recover faster after a fire. If your home has experienced the devastation of a house fire, we can help you rebuild better. Contact Holly Construction today or call 707-541-0700.