What You Need to Know About Your Insurance Claim

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When property damage happens—whether from water, fire, or a sudden storm—the first instinct is to call your insurance company and expect everything will be “made right.” But the truth is, insurance policies aren’t written for convenience; they’re written for precision. Knowing what’s covered, what isn’t, and what happens when you choose to remodel or upgrade can make the difference between a smooth recovery and a costly surprise.

At The Claims Authority, we help homeowners and property owners navigate this process with clarity, advocacy, and results.

Every claim begins with your policy. It’s your contract with the insurance company—and it dictates what they owe, how they pay, and when they can say no.

There are typically two types of property coverage you’ll see on your declarations page:

• Actual Cash Value (ACV) — The cost to repair or replace the damaged property, minus depreciation.
   
• Replacement Cost Value (RCV) — The cost to replace the property with something of like kind and quality, without depreciation, once repairs are completed.

Most homeowners don’t realize that even if you have replacement coverage, your insurer will often start by paying ACV and only release the remaining “recoverable depreciation” once the work is finished and documented.

Insurance carriers are required to replace what you had—not upgrade it. That means if your home had builder-grade carpet, they owe you for builder-grade carpet. If you decide to install hardwood floors instead, that difference in cost is your responsibility.

This principle applies across the board: cabinetry, lighting, countertops, roofing materials, and even appliances.
Your policy is designed to restore your property to its pre-loss condition, not improve or remodel it.

For Example:  If your kitchen cabinets were damaged in a water loss, your carrier might cover the cost of replacing similar cabinets—but if you choose new custom cabinets or change the layout, those upgrades would be out-of-pocket.

Even though upgrades are a homeowner’s expense, they can still be a smart decision.
When a property is already under repair, it’s often the best time to make changes that enhance value, efficiency, or resale potential.

At The Claims Authority, we help clients make strategic decisions about what’s covered, what’s not, and where investing extra dollars can deliver long-term ROI—especially when damage intersects with future plans to sell or refinance.

We also coordinate with contractors, real estate professionals, and sometimes fiduciary representatives to ensure all work aligns with your financial and legal goals.

Your insurer will only pay for what’s proven. That means every estimate, invoice, and photo matters.
Missing paperwork, mismatched pricing, or unclear scope descriptions can delay payments—or worse, reduce them.

Our team builds airtight documentation packages that show the full extent of loss, the legitimacy of repair costs, and the justification for each line item. This isn’t just about compliance—it’s about positioning your claim for maximum recovery.

Insurance companies process thousands of claims a month. They rely on internal guidelines and pricing software to control payouts. As your public adjuster, we balance the equation—representing your interests exclusively.

We:

• Review your policy to identify every potential coverage benefit.
   
• Inspect and document damage with independent expertise.
   
• Prepare detailed estimates and negotiate with the carrier.
   
• Track every payment and ensure depreciation is recovered.

The result? Faster settlements, fewer disputes, and higher payouts—all while you stay informed and in control.

Insurance is designed to restore, not remodel. Your carrier’s obligation is to replace what existed, not to upgrade or reimagine it. But that doesn’t mean you can’t make your property better than before—it simply means you need a clear plan for what’s covered and what’s worth improving.

With The Claims Authority, you get more than a claims adjuster—you get a trusted partner who helps you make smart decisions, recover every dollar you’re owed, and rebuild with confidence.