Usually an insurance adjuster comes to your home, evaluates the damage and sets the amount to repair the damage, considering cost of needed materials and customary labor fees. Here's the problem. Remember, you probably have a mortgage loan. Your mortgage company is very interested when damage has been done to the home they loaned you money to acquire. They want the repairs done right to prevent loss to the property value. In fact, the insurance agent may inform your lender that a loss was suffered.
It's the Mortgage company that will require you to provide the insurance adjusters report, a cost estimate from a licensed contractor, proof the work has been done by demanding you have the contractor sign a Waiver of Lein and they may even send an inspector to your home to validate the repairs were done properly. Here's what to expect. Depending on the amount of damage, I am going to use the guidelines Fannie Mae uses, if $5,000.00, you won't receive the full amount of the loss draft check. That's right, you might receive just enough to get the work started.
Wait, let me back up a minute. The insurance loss draft check will always be made payable first to your mortgage company, and then to you as secondary, (unless the damage is minimal or under $1,000.00). So, you won't be able to cash the loss draft check if the damage is more than $1,000.00 to repair. Your lender must endorse the check before you get any of that money. Sometimes, depending on the costs to repair the damage, usually $5,000.00 or more, your lender may retain a larger portion of the loss draft monies and release funds only if the contractor can substantiate why their original estimate was understated.
The balance of the loss draft is usually released after the mortgage company receives a Waiver of Lein from the contractor, meaning the work is done and the contractor won't put a lien against the home because the homeowner is paying him in full with the loss draft monies the lender held until the job is complete.
It is between you and the contractor if his price is more or less than what the insurance adjustor paid on the loss draft. The lender has the right to hire their own contractor to perform the repairs if your contractor charges too much or is not licensed. The lender controls the loss draft disbursments when all their requirements are met. Licensed contractors are well aware of this game and do not expect payment in full until they are finished with the work. They also know their work is subject to inspection by the lender. Some lenders do not charge for the final inspection, some do. The homeowner pays for the lenders that charge for an inspection.
Mortgage companies may ask your contractor for credentials, so if you do the work yourself, you must have the proper license.
Keep all your receipts for both materials and labor. You can submit them for reimbursement to your insurer. You are not however allowed to bill your insurer for your own labor on your own home. The labor you put into your home is considered an investment and a cost saving measure, it is not recoverable.
The major types of insurance in the construction industry areInsurance of the works, Plants &Equipmentagainst lose, damage etc also called contractor's all risk (CAR) insuranceThird party insurance (insurance against third party property damage or lose)Workers compensation insuranceProfessionalindemnityinsuranceRarely some countries like in the middle east have decennial insurance (for period of 10yrs after construction)
F. N. Eaglestone has written: 'Insurance for the construction industry' -- subject(s): Business Insurance, Construction industry, Contractors, Insurance, Insurance requirements, Insurance, Business, Insurance, Liability, Liability Insurance
One major area that belongs to wholesale distribution happens to be the construction materials industry. The construction materials industry includes suppliers that belongs to the raw materials used by construction firms at the time where building commercial as well as residential properties.
construction is a secondary industry because it is building something from raw materials such as a ship .it is also constructing something from components
Fire Insurance Industry
Construction is considered a secondary industry because it involves the transformation of raw materials (such as wood, steel, and concrete) into goods (buildings, bridges, roads) rather than the extraction of raw materials from the earth. It relies on primary industries like mining and logging for its raw materials.
McNeill Stokes has written: 'Construction law for owners and builders' -- subject(s): Construction contracts, Construction industry, Law and legislation 'Construction law in contractor's language' -- subject(s): Construction contracts
Contractor's bonds ensure the performance of work done by a contractor. Contractors bonds are used mainly in the construction industry, and they are in place to ensure that the work will be done properly and to the desired specifications set out by the person who hired the contractor.
world construction today is the leading global construction industry online platform. It covers latest happenings in construction industry, construction industry reports, upcoming construction industry events & conference news.
K J. Whitt has written: 'Materials management in the construction industry'
The Construction Industry board in Florida can give you all of the details you need. Their website is http://www.myfloridalicense.com/dbpr/pro/cilb/.
The Kiewit Corporation is an employee owned contractor that is based in Nebraska. It's one of the largest mining and construction industry companies in the world.