Insurance Fraud – How do you Avoid It?

With all of the so called “insurance claim specialists” here in KC we want to assist you in truly understanding that people create insurance fraud EVERYDAY. Don’t get yourself in this situation and understand what Insurance Fraud “IS” and what it “IS NOT”.

Why Getting the Lowest Bid Will Cost You Less Money & Why You Must Pay Your Deductible

Here is a quick example of a breakdown:

Total Amount of Claim (RCV)   $ 10,000
Less Recoverable Depreciation ($  2,000)
Less Deductible     ($  1,000)

Net Actual Cash Value Payment (1st Check)       $  7,000

Roof Installation is Complete

Invoice Faxed to Insurance Company $ 10,000  Total Amount of Claim (RCV)

Recoverable Depreciation Payment (2nd Check) $   2,000
Net Actual Cash Value Payment (1st Check)   
+  $   7,000

 

TOTAL AMOUNT TO CUSTOMER   $   9,000

If the job price is less than the insurance allowance or if the deductible is not collected, then the invoice is sent for the actual amount of the job and for the actual monies collected.

Example:

Invoice Faxed to Insurance Company $  9,000
Recoverable Depreciation Payment (2nd Check)       $  1,000
Net Actual Cash Value Payment (1st Check)        + $  7,000

TOTAL AMOUNT TO CUSTOMER   $  8,000

We hope this example makes sense on working on an insurance claim, the right way.   A lower price may be a great thing but in the long run, it isn’t usually the best option for an insurance claim.

Contact us today to set up a free consultation and proposal for your storm damaged property!

Posted in Featured, Insurance 101