The Derecho that wreaked havoc across Iowa last August, has left many homeowners struggling to find qualified contractors to restore their home, or are left waiting on adjusters to inspect the damage in better weather conditions.
Now some homeowners are learning that certain policy limits are requiring them to have their repair work completed by August 10, 2021 and are being told by reputable contractors that it may not happen. A catch 22 some may say.
After Hurricane Irma hit the state of Florida, legislators passed State Statute 627.70132 which required state-licensed insurance companies to grant homeowners up to three years after the named event to file a claim, reopen a claim, and/or supplement a current claim.
To date, the state of Iowa has not passed any legislation granting homeowners the same opportunity to find a reputable contractor, dispute their claim findings and restore their home back to pre-storm condition using the same quality materials that are currently on their home.
What can prevent homeowners from having the work done?
Often a homeowner will have a Scope of Loss from their insurance company prior to having a licensed contractor out to assess the damage. The results vary, but more often, once a contractor is hired, the contractor will discover certain items missing from the Scope of Loss. This prohibits the contractor from restoring the home back to pre-storm condition. At this stage, an insurance restoration contractor will create a Scope of Work and submit this to the insurance company for review. If the adjuster agrees to the supplement, then the appropriate funds to complete the work will be released and the work can be completed. If the adjuster disagrees, it will require time for additional evidence to be found including engineering reports, material availability, re-inspections, or a multitude of discussions before coming up with an agreeable scope of work.
There are thousands of homes needing restoration, with a smaller pool of skilled tradesmen to help. Licensed, established businesses are unable to move as quickly as desired given they will not sacrifice the quality of their work to appease insurance companies’ policy limits.
Before the Derecho, the whole world came to a halt at the start of the pandemic. Everything from toilet paper to building materials were directly impacted by the virus that kept us apart for months. Throughout 2020, we had fires, hurricanes and hail storms consuming material supply, while the demand increased, the once surplus is now a commodity. With storm season just around the corner, even one small event could put materials into a “supply when ordered” scenario. Meaning access to shingles, siding and windows could stretch from 8-12 weeks to half a year or more.
What can homeowners do?
