Read and review the class information then take the test below.
Insurance Scope- This is a document provided by the insurance company that list your customers’ information, claim number and an estimate for specific items/work needed in order to repair or replace their property damaged by a covered loss. It will list cost of repair that they determine from the inspector’s report of loss.
ACV or the actual cash value is the amount received by the customer in order to repair minus the amount the item has depreciated. This total amount will then have the deductible removed and be given to the homeowner.
Depreciation is the loss of value that has occurred over time due to factor such as age, wear and tear, etc. Some policies will pay out the depreciation after the work or repair has been completed and a final invoice has been submitted into the insurance company, some policies have items or total claims be classified as non-recoverable; and would not pay out the amount depreciated. A quick way to identify in most policies is that recoverable depreciation is in ( ) and non-recoverable is in < >. But to be 100% accurate, check the summary page where the depreciation is listed as recoverable or non-recoverable.
RCV or the replacement cost value is the estimated cost of repairing or replacing an item(s) lost or damaged.
Other charges important listed on scopes are O & P, PWI and code upgrades. O & P, overhead and profit, is the amount paid out to general contractors or facilitator in order to get all trades and work completed on the behalf of the customer. They handle all the coordinating, permits and inspections needed by the city, and ensuring all work is completed to the highest standards and according to all required law-enforced code. PWI, paid when incurred, items are work that is only paid after all work is completed. These items are stricken out on the insurance scope and added to the total, usually found on the last page of the summary of the claim. Code upgrades are items that are now required the homeowners’ city. These items are stricken out and usually replace another line on the scope. They are also added to the total after the work has been completed and are usually found on the last page of the summary of the claim. Not all policies pay for code upgrades, it must be listed as part of their coverage. If the homeowners’ policy does not include code upgrade the cost of these necessary items will be the homeowner’s responsibility.
Marring clause is a clause on the homeowner’s policy stating that superficial damage done to metal items is not covered for replacement. The damage must only be superficial and not impede with function.
When we receive a claim, we look for any missing items necessary to return the property to a pre-loss status. Items missing, or incorrect are then submitted into the insurance company as supplement report. We submit it when we find further damage, city requirements, or missing steps that would add cost. We best protect NorthStar by submitting all of these into the insurance company to ensure neither NorthStar nor the homeowner are incurring loss due to the repair. That responsibility is of the insurance company.
Sometimes we find that the insurance company only found partial damage, or no damage based on the scope returned after an inspection. If you find that they clearly missed the state of loss, the best way to get a reinspection is to submit as many evidential pictures into the NorthStar production team along with the insurance scope. We will submit our supplemental report for a full replacement using the pictures as proof. This usually happens when we contact the homeowner after they have had an insurance inspector come out, or the homeowner did not inform you when the inspector was coming to inspect the property. Remember, it is in the best interest of the insurance company not to cover a repair or loss, so it is imperative that the homeowner allows us to advocate for them.