Scope of Loss Report for Proving the Cost to Rebuild After a Disaster.

Scope of Loss ReportIf your home has been damaged or lost, due to a wildfire, flood, natural disaster, fire, or by any other means, you must prove your “Measure of Indemnity” or the cost to rebuild to your insurance company. While this sounds simple, it is anything but simple. 99% of builders do not know how to create an estimate that will be accepted by an insurance company. That can create anxious moments for survivors, who have received an estimate from their insurance company and it is obviously a much lower amount than they know it will take to rebuild. If you are frustrated by your company’s estimate, we can help with an accurate rebuild estimate that your insurance company can’t refuse.

Find out more about our building and estimating process here.

FAQ about Scope of Loss Reports

BW Builder is a licensed builder in the state of California. As experts in creating estimates to rebuild homes damaged by wildfires, we know what you need to submit as proof of loss for your insurance claim. In fact, we wrote the book on it! Whether you are in Sonoma County, Northern California or anywhere in our great state, you can depend on BW Builder’s expertise to provide you with the estimate that proves the true cost to rebuild your home.

Your insurance company has probably already given you a “Scope of Loss” report. Usually, they give this to you in a format that is confusing and difficult to read. Insurance companies typically use a software called Xactimate®, and usually, their report shows you an estimated cost that has nothing to do with the reality in your area.

There are many reasons why an insurance company estimate is not an accurate look at the cost to rebuild –

  • Most likely, the company’s adjuster has never built a home and is really only repurposing old estimates already in their system. That person can’t possibly reflect all the complexities it takes to properly estimate a home rebuild.
  • Many companies simply can’t find a good builder or adjuster to create an accurate estimate.
  • Other companies have a design to frustrate you and make you anxious you won’t be able to obtain your deserved coverage. That frustration often leads folks to throw their hand up in disgust and walk away from dollars they need
  • When you ask your builder if he or she can perform an estimate in this complex software, the contractor will look at you as if you are insane. They build with hammers and nails and have no desire or knowledge of how to use a software as overly complicated and detailed as Xactimate®.
Since 2018, BW Builder has produced more than 250 scope of loss reports. EVERY SINGLE ONE has proven successful in helping a claimant establish their loss value.

  1. We are builders. We are experts in building homes in California.
  2. Out of state insurance company adjusters don’t know anything about the complex building rules unique to California.
  3. Public adjusters are paid a percentage of an overall insurance payout. Therefore, they are incentivized to inflate the real cost to rebuild in the hopes of padding their own profits. Insurance companies know this is how public adjusters function so estimates coming from a public adjuster are always viewed by the insurance company as suspect.
  4. Our estimates are backed by recent building invoices, materials receipts, labor costs, and subcontractor agreements.
  5. The insurance company knows the evidence backing our estimate will always be viewed by a judge, arbitration panel, or mediator as more accurate than the estimate from a company adjuster who has never built a home.
  6. We charge a flat fee based on the complexity of the home. Anywhere from $2,000 to $10,000 in most cases. In that way, we cannot be accused of inflating our estimate to benefit our payment.
  7. BW Builder estimates never lose because insurance companies have internal data indicating real costs. They hope their customers cannot find an accurate estimate. But if a claimant does find a quality estimate, the companies know fighting an accurate estimate, provided by a local builder, is a losing game.

Our estimates are uniquely suited to help you arrive at your measure of indemnity. According to the California Insurance code section 2051.5, the “measure of indemnity is the amount that it would cost the insured to repair, rebuild, or replace the thing lost.” There may not be any single data point more important to your claim! How can an insurance or public adjuster who has never built a home come up with an accurate rebuild cost? Only a builder can accurately estimate your measure of indemnity.

Our detailed and accurate scope of loss reports are produced in either Xactimate® . You will have a document that allows you to prove your measure of indemnity (cost to rebuild what you lost) and serve as valuable proof of loss in your claim.

Some highlights of the BW Builder Scope of Loss Report:

  • Media reports concerning price increases and demand surge pricing.
  • A proprietary estimate delineating the fiscal impact of code upgrades on your rebuild.
  • Documentation describing code upgrades in California.
  • A six-page pricing methodology report, explaining to any adjuster the methods we use for our pricing.
  • An overall rebuild cost estimate showing all the detail an insurance company claims to need, produced by our licensed CA Builder.
  • A “Labor Report” which details the costs of labor in your specific area.
  • A “Materials Report” which breaks down the cost of every screw, nail, board, and shingle that goes into reconstructing your home.

Simple, we are one of the few honest builders in an industry dominated by disaster-chasing charlatans. Public adjusters charge $50,000, $100,000, even $500,000 to produce scope of loss reports that are immediately viewed as conflicted by insurance companies. Insurance companies employ adjusters whose loyalty is to the company, not you. They train adjusters to unknowingly give you low-ball estimates.

Meanwhile, we produce estimates that can provably demonstrate the real cost you will face to rebuild. It sounds very strange, but we are considered experts because we are honest and our estimates are always accurate.

When we first began to produce these reports, we worked with United Policyholders to design a report that could be affordable and effective. Matt Everson has extensive knowledge of insurance company contracts and the California Insurance Code and crafted the estimate to compel an insurance company to honor their contract. His business partner, Bill Wallace, is an expert builder and deeply experienced in the software used by the majority of insurance companies. We use our own current material and labor costs for your specific area. We do not depend on the data provided by the software companies as it often has no relation to the true costs you will face when you rebuild. Insurance companies and public adjusters use the pre-programed and wildly inaccurate figures that come from the software company based in Canada.

The combined industry knowledge and building expertise allows us to create a scope of loss report that insurance companies will hate but you will love.

The cost of our report will vary depending on the project. Prices begin at $2,000 and average between $4,000 and $6,000. Rarely will the costs exceed $10,000. Factors such as size, the complexity of the home, and the type of data and specifications available for the home all go into the cost of your estimate.

We can provide “Code Upgrade” only reports, partial reconstruction reports, and full loss reports. We will give you a price quote before signing any contracts. We begin work upon receipt of the signed contract and deposit and we can usually have the estimate completed within 4 weeks.

If your insurance company is giving you a low-ball estimate, we can help. If you hired a public adjuster and they are getting nowhere with the insurance company, we can help. If you want indisputable rebuild cost data so you can force your insurance company to admit your actual loss value, we can help. If you want to have the data to help you better settle your claim, there is no better scope of loss report than the one BW Builder can custom create for you!

Get Your Scope of Loss Report Today!

Get Your Scope of Loss Report Today!