? Do you want to know how to figure out what your insurance claim is worth after your home gets damaged?
How Do You Calculate The Value Of A Claim?
You will learn a clear step-by-step way to calculate the value of a property insurance claim. You will read simple sentences. You will find lists and a few small tables to help you. You will also learn how a public adjuster helps. You will get Florida-specific notes and a concrete example with numbers.
You will find this useful if a storm, roof leak, pipe burst, fire, or mold harmed your home. You will see how to turn damage into a dollar number that you can ask your insurer to pay.
Why the value matters
You will need a number to ask your insurance company for money. The number tells you how much work or replacement you need. The insurer will use rules in your policy to decide what they pay. You will want the number to be correct. A right number helps you fix your home and replace your things.
Step 1: Read Your Policy to See What You Have
You must read your insurance policy first. The policy says what events it covers. The policy also says limits and deductibles. You must look for these key lines:
- The type of coverage for the building. The policy may say “Replacement Cost” or “Actual Cash Value”.
- The limit on the dwelling. This is the most the insurer will pay for the house.
- The deductible. This is the amount you pay first.
- Extra coverages. These can include Additional Living Expenses, debris removal, and ordinance or law.
- Time limits and proof of loss requirements. The policy often sets deadlines.
You will keep the policy paper in a safe place. You will take photos of the policy pages or scan them. You will share them with a public adjuster if you hire one.
Simple policy terms you will see
You will see short words in the policy. Here are plain meanings.
- Coverage limit: The top dollar the insurer will pay.
- Deductible: The dollar you must pay before the insurer pays.
- Replacement Cost (RCV): The cost to replace an item with new parts.
- Actual Cash Value (ACV): RCV minus depreciation.
- Additional Living Expenses (ALE): Money for a place to stay if your home is not livable.
- Proof of loss: The form and documents the insurer asks for.
Step 2: Inspect and Scope the Damage
You will walk through your home or the public adjuster will. You will note everything that is damaged. You will take clear photos and videos. You will list damaged items and damaged parts of the house.
You will check roof, walls, floors, windows, doors, HVAC, plumbing, appliances, cabinets, and personal items. You will look for water stains, mold, broken glass, holes, missing shingles, and collapsed areas. You will write short notes about each item. You will take measurements where you can.
You will collect receipts for repairs or improvements you made before the loss. You will find serial numbers for appliances. You will make a list of furniture, electronics, and other valuables.
Step 3: Choose ACV or RCV and Understand Depreciation
Your policy will say if the insurer pays ACV or RCV. This matters a lot.
- If your policy pays RCV, you will get full replacement cost if you repair or replace the damaged item.
- If your policy pays ACV, you will get a lower amount that deducts depreciation for age, wear, and tear.
Depreciation is money the insurer subtracts because an item is older or used. You will see depreciation on roofs, floors, cabinets, and appliances.
Example: A 10-year-old roof costs $10,000 new. The insurer might say it has 50% depreciation. The ACV would be $5,000.
If you have RCV, you will usually get an initial ACV payment. You will then submit receipts after you finish repairs. The insurer will then pay the rest, minus your deductible.
ACV vs RCV — Quick Table
| Item | What insurer pays (ACV) | What insurer pays (RCV) |
|---|---|---|
| New roof cost | Cost minus depreciation | Full cost to replace after you repair |
| Old stove | Lower value because of wear | Full cost for a new stove after replacement |
| Personal item | Age-adjusted value | Full cost to replace with new item |
Step 4: Get Estimates and Repair Quotes
You will get written repair quotes from contractors. You will get at least two or three bids for big items like the roof or major water damage. You will ask for itemized scopes. The bids should show line-item prices for materials, labor, permits, and cleanup.
You will keep every estimate. You will compare the bids. You will not accept the cheapest bid blindly. You will check references. You will ask about warranties.
A public adjuster can collect and review the bids for you. The adjuster can create a detailed scope of loss that matches trade standards. The adjuster can explain why a higher bid is fair if the work is correct.
Step 5: Create the Repair and Replacement Cost Estimate
You will add the costs for all damaged items. Use the contractor bids and replacement price lists for contents. For small items, you will use receipts or market price.
Here is a simple breakdown you can use:
- Roofing replacement cost
- Exterior siding or stucco
- Windows and doors
- Interior walls and drywall
- Flooring
- Cabinets and countertops
- HVAC repair or replacement
- Electrical and plumbing repair
- Contents replacement
You will write each cost on a list. You will add a small line for cleanup and disposal.
Example Itemized Estimate (Short)
| Item | Quantity | Unit Cost | Total |
|---|---|---|---|
| Roof replacement | 1 | $12,000 | $12,000 |
| Drywall repair | 500 sq ft | $3.00/sq ft | $1,500 |
| Flooring | 800 sq ft | $4.50/sq ft | $3,600 |
| Cabinets | 1 kitchen | $4,000 | $4,000 |
| HVAC repair | 1 unit | $2,500 | $2,500 |
| Contents (furniture) | – | – | $5,000 |
| Debris removal | – | – | $800 |
| Permits & taxes | – | – | $700 |
| Subtotal | – | – | $30,100 |
You will save this subtotal. You will use it to calculate the claim value.
Step 6: Subtract Depreciation if ACV Applies
If your policy is ACV, you will subtract depreciation. For each item, you will find a depreciation rate. The rate depends on the age and life of the item.
Example: You will treat a 10-year-old roof with a 20-year life. The depreciation is 10/20 = 50%. You will multiply the replacement cost by 50% to find depreciation.
You will do this for floors, cabinets, and appliances. Personal property also has depreciation tables.
After you subtract depreciation for each item, you will total the ACV.
Step 7: Apply Your Deductible and Policy Limits
You will subtract the deductible from the total amount the insurer owes. The deductible is often per claim or per event. You will check your policy to see which.
If your damage subtotal is lower than the policy limit, the limit will not matter. If the subtotal is higher than the limit, the insurer will not pay more than the limit. You will need to pay the rest yourself or negotiate with the insurer.
Example: If the total replacement cost is $50,000 and your deductible is $2,000, you will ask the insurer to pay $48,000, minus any depreciation if ACV applies.
Step 8: Add Extra Coverages and Additional Living Expenses
Your policy may include extra items. You will check for these and add them to the claim when you calculate the value.
Extra coverages to check:
- Additional Living Expenses (ALE): Money to pay for temporary housing, food, and laundry if you cannot live in your home. You will keep receipts.
- Debris removal: Payment for removing damaged materials.
- Ordinance and Law: Payment for code upgrades or to bring the home up to current code if repairs trigger code work.
- Increased Cost of Construction: For rebuilding to meet code.
- Electronic data recovery or loss of rents: If the policy covers those.
You will add these amounts to the claim value if they apply.
ALE Example
You will budget for hotel, meals, and short-term rental. You will keep receipts and a record of nights you spent away. If your policy allows 12 months of ALE, you will track each cost.
Step 9: Include Sales Tax, Permits, and Contractor Overhead
You will add sales tax, permit fees, and contractor overhead to the repair cost. Contractors include these costs in their bids. Make sure the bids list these lines. If bids do not show these items, you will ask for them.
You will include the cost to replace items that must be replaced because matching is required. If you replace part of a floor, the contractor may need to replace a larger area to match. You will plan to pay for the matching work and include it in the claim.
Step 10: Add Contents and Personal Property Replacement Value
You will make a list of damaged personal items. You will write the brand, model, age, and approximate value for each. You will find receipts when possible.
For items without receipts, you will estimate a fair price. You will use market prices or replacement cost guides. You will include photos of the items and the damage.
If your policy has replacement cost for contents, you will list new prices. If your policy pays ACV for contents, you will subtract depreciation.
Sample Full Claim Calculation
You will now see a full sample for a simple house claim. The numbers below are simple and small. They will show how items add up.
- Subtotal for structure replacement (from contractor bids): $40,000
- Depreciation (if ACV) on structure items: $8,000
- Structure ACV: $32,000
- Contents replacement cost: $6,000
- Debris removal and cleanup: $800
- Permits and taxes: $700
- ALE for 2 months: $3,000
- Total before deductible: $42,500
- Deductible: $2,000
- Policy limit check: Policy dwelling limit $150,000 so ok.
- Insurer payout request: $40,500
If the policy is RCV and you finish repairs:
- The insurer may pay initial ACV of $32,000.
- After you submit receipts for $40,000 in final costs, the insurer will pay the recoverable depreciation of $8,000, minus the deductible.
You will keep all contractor receipts and paid invoices. You will show those to get the final RCV payment.
Role of a Public Adjuster
You will hire a public adjuster to act for you. A public adjuster works for the insured, not the insurance company. The adjuster will:
- Inspect your property.
- Create a scope of loss and an estimate.
- Collect proofs like photos, contractor bids, and receipts.
- Negotiate with the insurer on your behalf.
- Help file a proof of loss and supporting documents.
- Prepare and submit supplements if needed.
A public adjuster uses local pricing and trade standards to value the loss. The adjuster will check for hidden items that the insurer might miss.
Public adjusters often charge a fee that is a percentage of the recovery. You will want to read the agreement carefully. Otero Property Adjusting & Appraisals, based in Pensacola, FL, offers an initial inspection free and only gets paid when you do. You will call them at (850) 285-0405 or visit https://oteroadjusting.com/. Their office is at 3105 W Michigan Ave, Pensacola, FL 32526. They serve homeowners across Florida.
How the public adjuster helps with your number
You will get a stronger claim number when a public adjuster documents the loss properly. The adjuster will:
- Include often-missed items in the claim.
- Explain and justify line items to the insurer.
- Push for recoverable depreciation if you have RCV.
- Fight denied or underpaid items.
A public adjuster works as your advocate in the claim process. Otero Property Adjusting & Appraisals will inspect your property at no cost. They will speak to your insurer for you. They will explain policy language and your rights in Florida.
How an Insurance Company Adjuster or Loss Adjuster Differs
You will meet the insurance company adjuster after you file a claim. That adjuster works for the insurer. The company adjuster will inspect damage and report to the insurer. The company adjuster focuses on what the insurer will pay under the policy.
A loss adjuster sometimes works for the insurer to estimate repair cost. The adjuster checks damage and writes a report. You will compare the insurer’s estimate to your own estimate or the public adjuster’s estimate.
You will note differences and present evidence. If your estimate is higher, you will ask the insurer to reconsider. A public adjuster can help with this step. The public adjuster will present line-item explanations and proof.
Common Mistakes You Should Avoid
You will avoid common mistakes that lower your claim value. Here are clear warnings:
- Do not accept the first offer without review. The first offer may miss items.
- Do not sign away rights without reading the paper carefully. You will read release forms.
- Do not throw away damaged items until the insurer inspects them. Keep photos if you must discard for safety.
- Do not wait too long to file the claim or to provide proof of loss. Policies set deadlines.
- Do not pay a contractor fully before work is complete. Use a staged payment plan tied to milestones.
- Do not accept a check that requires you to sign over rights to future claims without clear terms.
You will stop and ask questions if something is unclear. You will bring the public adjuster a copy of the insurer’s estimate so the adjuster can compare.
Tips to Get a Higher, Accurate Claim Value
You will use these smart but simple tips:
- Take lots of photos and videos of all damage.
- Keep a damage diary. Write where you found damage and why.
- Get multiple contractor estimates and itemized bills.
- Save receipts for temporary housing, meals, and clothes.
- Keep a list of all personal property lost, with photos.
- Show proof of upgrades or recent work with invoices.
- Use a public adjuster if the claim is large or the insurer denies items.
You will be calm, polite, and firm when you speak to the insurer. You will ask for the line-item logic behind any low payment.
When You Should Hire a Public Adjuster
You will hire a public adjuster if:
- The claim is large (usually tens of thousands or more).
- The insurer denies a major part of the claim.
- You do not have time or knowledge to gather evidence and estimates.
- You want professional help to speed up the claim and increase recovery.
A public adjuster can make a big difference in the final amount you recover. Otero Property Adjusting & Appraisals serves Florida homeowners and can help on house claims of many sizes. The initial inspection is free and the fee is contingent on recovery.
Florida-Specific Notes You Should Know
You will follow policy timelines and state rules. Florida has building codes that may affect repairs. Code upgrades after a storm can add cost. Your policy may include ordinance and law coverage that pays for code-mandated upgrades.
You will also watch for hurricane deductibles. Many Florida policies have special deductibles for named storms or hurricanes. These deductibles may be a percentage of the dwelling limit rather than a flat dollar amount. You will check your policy page for hurricane deductible language.
You will also note that Florida law has specific rules about insurance claims. You will ask a lawyer or a licensed public adjuster if you are not sure about legal time limits or notices.
Paperwork Checklist You Will Use
You will gather this list of documents and proofs:
- Your insurance policy.
- The insurer’s claim number and contact info.
- Photos and videos of all damage.
- Contractor estimates and itemized scopes.
- Receipts for temporary housing and repairs.
- Receipts for prior purchases and upgrades.
- Serial numbers and receipts for appliances and electronics.
- Police or emergency reports if relevant.
- Proof of ownership for valuables.
- Completed proof of loss form if the insurer asks.
You will give copies to your public adjuster. The adjuster will organize them for the insurer.
How Negotiations Usually Work
You will send your itemized claim to the insurer. The insurer will send an adjuster and an estimate. The insurer may pay some items and deny others.
You will compare the two estimates line by line. You will note missing items and price differences. You will ask the insurer to explain any single price that seems low.
You will present supporting evidence. This includes contractor bids, receipts, and photos. You will write short notes to explain each item. Keep your notes clear and factual.
If the insurer stands firm, you will request a meeting or an independent appraisal if your policy allows. You will consider arbitration or suit only after you try to negotiate.
A public adjuster will handle many of the back-and-forth items. The adjuster will file a demand package with the policy language and evidence.
How Supplements Work and Why They Matter
You will add supplements if you find more damage during repairs. The contractor will write a change order that shows extra work. You will send that to the insurer as a supplement.
You will not sign off on a final payment until all supplements are resolved. Many claims open up later when hidden damage appears during tear-out or repair. A public adjuster will track supplements and file them quickly so you get paid.
Example Scenario with a Storm and Roof Damage
You will read a short, clear story so you can imagine the steps.
You have a 1,800 sq ft home in Pensacola. A storm blows off shingles. Rain soaks into the attic and ceiling. You call your insurer. You call a roofer. You call Otero Property Adjusting & Appraisals for a free inspection.
The public adjuster inspects and documents the roof and water damage. The roofer bids $15,000 to replace the roof. The roofer also bids $2,500 to replace wet drywall and insulation.
Your policy limit is $200,000 for dwelling. You have a $2,000 deductible. Your policy has RCV for the dwelling.
Calculations you will see:
- Roof replacement: $15,000
- Drywall and insulation: $2,500
- Debris removal and permits: $1,000
- Subtotal: $18,500
- Deductible: $2,000
- Insurer initial ACV check: $16,500
- After you finish repairs and send receipts for $18,500, the insurer pays recoverable depreciation if any and the remainder minus deductible. You will be made whole to replace the roof and drywall after the process completes.
The public adjuster helps ensure the insurer pays for the full roof system, underlayment, flashing, and proper attic ventilation. The adjuster documents these items so the insurer includes them.
Final Checklist Before You Accept a Settlement
You will ask these questions before you sign any release or accept a check:
- Does the payment cover all listed repairs?
- Does the payment allow me to hire a contractor with a warranty?
- Have I documented hidden damage and filed supplements?
- Does the payment remove my ability to claim additional damages later?
- Did a licensed public adjuster review the offer?
If you have doubts, you will ask for time to review. You will not sign a full release that blocks future claims unless you are paid the full correct amount.
Closing Thoughts and Next Steps
You will now understand the basic steps to calculate a claim value. You will use your policy, contractor bids, depreciation rules, and proof of loss. You will add ALE, permits, and other coverages when they apply. You will subtract your deductible. You will compare the insurer’s estimate to yours.
You will consider a public adjuster if the claim is large, if the insurer underpays, or if you want help with paperwork and negotiation. A public adjuster works for you, documents the loss, and pushes for fair payment.
Call Otero Property Adjusting & Appraisals if you need help in Florida. You will get a free initial inspection. They will not charge unless they recover money for you. Their contact details are:
Otero Property Adjusting & Appraisals
3105 W Michigan Ave, Pensacola, FL 32526
(850) 285-0405
https://oteroadjusting.com/
You will keep copies of everything. You will act quickly. You will speak clearly. You will ask for help when you need it. Your home will be closer to fixed when your claim gets the right number.
