Scope of Loss Report for Proving the Cost to Rebuild After a Disaster.
If your home has been damaged or lost due to wildfire, flood, natural disaster, fire, or any other event, you’ll need to demonstrate the “Measure of Indemnity,” or the rebuild cost, to your insurance company. While it may seem straightforward, creating an acceptable estimate is far from simple. Even if they had the time to create such an estimate, builders lack the know how to create an estimate that meets insurance company standards. Builders are typically too busy after a disaster to compile such detailed, lengthy reports.
If you’ve been provided with an insurance estimate that doesn’t match the costs you know it will take to build, BW Builder can help by providing an accurate, detailed rebuild estimate that insurance companies are prepared to accept.
Find out more about our building and estimating process here.
FAQ about Scope of Loss Reports
Chances are, your insurance company has already provided you with a “Scope of Loss” report. Unfortunately, these reports are often produced using softwares, like Xactimate®, which rely on nationwide pricing that don’t always accurately reflect the true costs here. BW Builder’s estimates bridge that gap, giving you a clear, reliable figure based on real market conditions in your area.
There are several reasons why an insurance company’s estimate may not fully capture the actual cost to rebuild a home:
- Lack of Construction Background: Insurance adjusters often rely on standardized estimates or templates from prior claims. Without direct construction experience, it can be challenging for adjusters to account for all the specific factors involved in rebuilding a unique property.
- Shortage of Specialized Estimators: Many companies face difficulty finding contractors or adjusters with the expertise needed to produce highly accurate, localized estimates after a disaster.
- Complex Software: Insurance estimates are typically generated using specialized software like Xactimate®, which is complex and highly detailed. As complex as these programs are, they often struggle to accurately reflect local pricing. In fact, all the major software providers tell you in their End User Licensing Agreements something to the effect of “ensure that estimates include pricing consistent with actual materials, equipment, labor pricing, etc.” Often adjusters are trained to rely on the pricing in such software, even though the software companies themselves warn them not to.
If you need an estimate that aligns closely with the actual rebuild costs in your area, BW Builder’s team is here to help, combining building expertise with a thorough understanding of the estimating requirements for insurance claims.
- As expert California builders, we bring firsthand knowledge of the state’s complex building codes and requirements.
- Our estimates are comprehensive, backed by recent invoices, materials receipts, labor costs, and subcontractor agreements. With this level of documentation, our estimates stand up to scrutiny from judges, arbitration panels, adjusters, and mediators.
- We charge an hourly fee based on the complexity of the home. A full report will range from $3,000 to $10,000. This straightforward pricing ensures our estimates are objective and cannot be misconstrued as inflated for financial gain.
- Insurance companies maintain data on real rebuilding costs and understand that an accurate estimate from a local builder holds weight. If you have a high-quality estimate, insurers know it’s challenging to contest in the claims process.
- Our estimates help establish your “measure of indemnity,” as defined by California Insurance Code Section 2051.5, which is the amount required to repair, rebuild, or replace the lost property.
Accurately determining this amount is critical to your claim, and only an experienced, local builder can provide an estimate that truly reflects these costs.
Our detailed Scope of Loss Reports, produced in Xactimate®, provide a thorough and accurate document to help you establish your “measure of indemnity”—the cost to rebuild your property. This report serves as critical proof of loss for your insurance claim.
Key Features of the BW Builder Scope of Loss Report:
- Market and Demand Analysis: Media reports highlighting recent price increases and demand surge pricing to reflect current market conditions.
- Code Upgrade Estimate: A proprietary estimate detailing the financial impact of California code upgrades on your rebuild.
- Code Compliance Documentation: Supporting materials that outline the specific code requirements in California.
- Pricing Methodology Report: A statement explaining our pricing methods, offering transparency to any adjuster.
- Detailed Rebuild Cost Estimate: An all-encompassing estimate of the rebuild cost, containing all the information an insurance company requires, produced by our licensed California builder.
- Labor Report: A detailed breakdown of labor costs specific to your region.
- Materials Report: An itemized list of materials, including every screw, nail, board, and shingle needed to reconstruct your home.
With BW Builder’s Scope of Loss Report, you have a meticulously prepared document that meets industry standards and supports the true cost of your claim.
In an industry where disaster-recovery services can often be overpriced or unreliable, BW Builder stands out as a trusted and transparent partner. Our reputation as experts stems from our commitment to honesty and precision. When we first began producing these reports, we collaborated with United Policyholders to design a report that’s both affordable and compelling for insurance claims. Our team brings specialized knowledge:
Bill Wallace: A seasoned builder with extensive experience in the software most insurance companies use, Bill ensures our estimates are accurate and objective.
Matt Everson: Matt is a businessman with who saw a need. Sonoma County residents who lost homes in the Tubbs Wildfire were desperate for accurate valuations of their damages. He was introduced to Bill, and the two of them built a company based on providing objective, accurate data to homeowners.
Matt handles customer service while Bill handles the estimating and building. Together, they make an outstanding team.
We rely on our own research and proprietary data when it comes to current costs for materials and labor in your area, rather than on the pre-programmed figures from software, which often fail to reflect local market realities.
Our combined industry insight and construction experience enable us to create a Scope of Loss Report that helps you secure the coverage you’re entitled to after a disaster.
The cost of our reports varies by project. We have a minimum charge of $2,000 and estimates typically range between $4,000 and $6,000. In complex cases, fees may reach up to $10,000. Our pricing is straightforward, based on hourly work, and depends on factors such as the size and complexity of your home and the available data and specifications.
We offer a variety of report options, including:
- Code Upgrade ONLY Reports: Focused specifically on additional costs due to code upgrades.
- Partial Reconstruction Reports: For cases where only part of the property is damaged.
- Full Loss Reports: Comprehensive reports for total loss scenarios.
Before any work begins, we provide a clear price quote. Once we receive the signed contract and deposit, our team can usually complete the estimate within four weeks.
If you are worried that the estimate your insurance company provided doesn’t reflect true local building costs, BW Builder can provide a custom report to establish your rebuild value. When it comes to obtaining the data you need, our Scope of Loss Report is an essential tool.
Get Your Scope of Loss Report Today!
Get Your Scope of Loss Report Today!
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