How to Write an Estimate for an Insurance Claim?

Drafting a fair Estimate for an Insurance Claim is no piece of cake. There is a huge responsibility of coming up with an accurate and precise estimate that is just to all the parties involved. Other than that, the insurance estimate document needs to be professionally written yet easy to understand. It also needs to abide by the rules and regulations revolving around insurance claims.

This article serves as a guide to help you understand how insurance estimates are created.

Learn to Write an Estimate for Insurance Claims!

Here is a step-by-step guide that highlights the best practices to develop a precise estimate for insurance claims.

1) Detailed Inspection 

The first step is to gather information about the extent of damage. Inspect your property from top to bottom to find out which areas have been damaged. Are there any broken windows? If yes, then how many? Has the building’s foundation been damaged? Take your time with this step and observe everything. Make a detailed list of everything, along with capturing videos and pictures. These images will serve as photographic evidence of the extent of damage and make it easier to explain the problem to relevant parties.

2) Create a Cost Estimate

Once you know the areas that have been damaged or destroyed, it becomes relatively easier to create a cost estimate. Your cost estimates need to include both material and labour costs. Moreover, it also needs to include the cost of removing the existing debris.

To develop our purpose precise estimate you need to have information about the market prices for the particular type of material and labor expenses of the area.

It is important to account for geographical differences in the cost. This is why Construction Estimating Services, such as SMA Estimating LLC, use real-time pricing guides that provide cost analysis according to zip codes. Using cost estimating software makes the process smoother, accurate, and much more reliable.

3) Competitive Pricing

When you are taking quotes from different suppliers, you will find that there is a difference between prices. Depending on the type of material, quantity, geographical location, accessibility, etc, the prices of materials can vary. So, how should one set their prices? For one, avoid overpricing or underpricing the costs. When you are creating an estimate for an insurance claim, the prices should reflect the standard costs of construction. They shouldn’t be set too cheap or too expensive, as it’ll harm the insurance process.

4) Consider Additional Expenses 

Apart from material and labour costs, there are some additional expenses related to construction that should be considered. They may or may not be included in the insurance estimate, but it is worthwhile to take a look at them. For example, some insurance estimates may also require permit fees or hiring a specialised professional. To create an accurate estimate for an insurance claim, one needs to be as detail-oriented as possible.

5) Insurance Claim Format

Insurance claim documents need to be as precise and clear as possible. It is important to use professional, yet easy-to-understand language that insurance adjusters don’t have any problem comprehending. It needs to be easy to follow and contain all the relevant information about the project. A Cost Estimating firm can also draft a document for you based on their financial understanding of the project. To make things easier, there are many different templates available online. They can also be edited to fit everyone’s requirements.

Tips on Creating an Estimate for an Insurance Claim

• Outsource an estimate for an insurance claim to a reliable Xactimate Estimator. You won’t have to worry about creating an accurate budget when a professional is on the job!
• Document all the relevant information from the cause of the incident to the total estimated cost. Support your claim with photographic evidence and precise cost analysis. Exclude irrelevant information from the document
• Always review and recheck the estimate for an insurance claim in case of any mistake or overlook
• Do not make any emotional statements regarding the incident. Only convey the facts of the case
• In case of confusion and lack of expertise, contact the relevant professionals for help.

How do Xactimate Estimating Services Help?

The Xactimate Estimating Services are provided by professional cost estimators who create accurate financial plans for any type of insurance claim. These estimators are more reliable, and they are trusted by both the property owners and insurance agents. Estimators use Xactimate software for cost analysis. Xactimate is BIM cost estimating software. That means, in addition to facilitating calculations, it also allows the user to create a 3D model of the building. A 3D model can help analyze the damage to the infrastructure. It also helps restoration specialists to plan the best way to repair and fix the building. 

Conclusion

By now, you may have an idea of how to create an estimate for an insurance claim. One of the most important things is to double-check every step. Do not look for shortcuts in the estimation process, and it’ll likely lead to error. If you have the means, then it is better to utilise an advanced cost estimating software rather than using the age-old manual method of cost estimation. Digital software has proven itself to be much more reliable as it runs on AI-powered algorithms and machine learning. If you still have any doubts regarding the estimation process, it’s always best to consult a professional for help.