Home/Storm Damage/Understanding the Insurance Process
Understanding the insurance process
Know who decides what.
Before you authorize the work.
A storm claim involves related but different decisions. Your insurer determines coverage under the policy. CR3 evaluates construction conditions and recommends an appropriate scope. You remain responsible for selecting the contractor and authorizing the work.
The short answer
What does insurance do after storm damage?
Your insurance company receives the claim, investigates the reported loss, interprets your policy and determines whether particular damage is covered and how payment is calculated. Coverage, deductibles, limits, exclusions and payment timing depend on the policy and applicable requirements.
A contractor does not make the coverage decision. CR3 documents observable exterior conditions, explains the construction needs and provides a scope and price for the work it recommends.
Three separate roles
One property, three different responsibilities.
Clear boundaries protect homeowners from promises that a contractor, adjuster or other participant does not have authority to make.
Reports and authorizes
Reports the loss, protects the property, provides requested information, selects the contractor, pays required obligations and approves the construction agreement.
Interprets the policy
Investigates the claim, identifies covered damage, applies the deductible, calculates payment and communicates its coverage decision.
Defines the construction work
Inspects accessible exterior systems, documents observable conditions, recommends appropriate repairs or replacement and provides a construction scope and price.
CR3 does not act as your insurance adjuster, interpret your policy or guarantee claim approval or payment.
A clear claim sequence
Six stages from loss to restoration.
The order may overlap based on safety, active water entry, insurer instructions, inspection access, state requirements and the conditions found.
Protect and document
Address immediate safety, take reasonable steps to limit additional damage and preserve photographs, receipts and records.
Review your policy and report
Confirm how to report the loss, which deductible may apply and what information your insurer requests.
Insurer evaluation
The insurer investigates the claim, interprets the policy and determines covered damage and payment under its terms.
Contractor inspection
CR3 evaluates accessible exterior conditions and develops a construction recommendation, scope and price.
Resolve scope questions
If the insurer estimate and proposed construction scope differ, supporting measurements, photographs or other documentation may be provided for the insurer to review.
Authorize and complete
The homeowner selects the contractor and signs a construction agreement only after understanding the work, price, payment terms and warranties.
Understand the deductible
The deductible is the policyholder’s responsibility.
A deductible is the amount or percentage the policyholder is responsible for before the insurer pays its share of a covered loss. Some policies may apply a separate wind, hurricane or named storm deductible.
- The applicable deductible
- Coverage limits and exclusions
- Reporting and documentation requirements
- Replacement cost or actual cash value terms
- A promise to waive or absorb your deductible
- A guarantee that every item will be covered
- Pressure to sign before understanding the work
- Confusion between an insurance estimate and contract
Estimate, scope and contract
Three documents may describe different decisions.
Homeowners should understand what each document does before assuming that one automatically replaces another.
Insurer estimate
Documents the insurer’s evaluation and calculation for covered damage under the policy.
Construction scope
Defines the work CR3 recommends based on property conditions, installation requirements and project needs.
Additional documentation
Explains measurements, conditions or necessary work that may not appear in the initial insurer estimate and remains subject to insurer review.
Construction contract
Creates the agreement between the homeowner and contractor for work, materials, price, changes, payments and warranties.
Do not begin with the assumption that the insurer estimate and construction contract serve the same purpose.
Before work begins
Know your financial responsibility.
Ask how the deductible, depreciation, prior payments, mortgage company involvement, upgrades, noncovered work and any approved scope changes affect what you owe and when payment is due.
Your construction agreement should identify the price or pricing method, included work, allowances, exclusions, change authorization, payment terms and applicable warranties. Ask your insurer or licensed insurance professional questions about policy coverage.
Ready when you are
Separate the coverage decision
from the construction decision.
CR3 will inspect accessible exterior systems, document observable conditions and explain the work needed to restore the property responsibly.
Policy terms and insurance requirements vary. CR3 does not guarantee insurance coverage or claim payment. Services and availability vary by location.