Proving the Cost to Rebuild After a Disaster

If your home has been damaged or lost due to wildfire, flood, fire, or another disaster, you will need to demonstrate the “measure of indemnity,” the true cost to rebuild, to your insurance company. While this may sound straightforward, creating an acceptable estimate is anything but simple.

Most builders do not have the expertise to produce estimates that meet insurance company standards. Even those who do are often too busy after a disaster to compile the level of detail required in these reports.

If you’ve received an insurance estimate that does not reflect what it will actually cost to rebuild, BW Builder can help. We provide accurate, detailed estimates that align with what insurance companies expect and are prepared to accept.

Let’s talk about your specific needs by scheduling a call with us today.

Scope of Loss Report

"I highly recommend them!"

"BW Builder scope of loss report was very professional and the whole process was quick, easy and affordable. The scope of loss report saved me tens of thousands of dollars that the insurance company would not have otherwise paid me. Due to BW Builder's skillful estimating skills and presentation of facts of the current insurance codes and current pricing of labor and material costs, the insurance company accepted their report without any dispute! I was blessed to do business with BW Builder and I highly recommend them!"
Rosie A. – Paradise, CA

FAQs about Scope of Loss Reports

BW Builder is a licensed California builder specializing in creating precise estimates for homes damaged by wildfires. We know what is acceptable as proof of loss for your insurance claim. In fact, we wrote the book on it! Whether you’re in Sonoma County, Northern California, or anywhere in the state, you can trust BW Builder’s expertise to deliver an accurate estimate that reflects the true cost to rebuild your home.

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 of building in California. 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.

Since 2018, BW Builder has produced over 400 scope of loss reports, each one has been successful in helping property owners and claimants define a clear value for their loss.

  1. As expert California builders, we bring firsthand knowledge of the state’s complex building codes and requirements.
  2. 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 insurance companies, appraisals, adjusters, and mediators.
  3. We charge a flat fee based on the size and complexity of the home. A full report will range from $7,000 to $20,000 and up. Our straightforward pricing ensures our estimates are objective and cannot be misconstrued as inflated for financial gain.
  4. 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, accurate estimate, insurers quickly realize that fact, thus helping you better navigate your claims process.
  5. 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: Our proprietary code upgrades estimate, which details the financial impacts of rebuilding a home to current code, takes the confusion and difficulty out of proving this often difficult to ascertain cost.
  • 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 party with questions about how we derive our pricing.
  • Detailed Rebuild Cost Estimate: An all-encompassing estimate of the rebuild cost, in the Xactimate® format, 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.

There are many reasons why our reports have yet to be found unreliably. We build our estimate so that any architect can turn it into plans that would be stamp able by any CA county or city. 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. Insurance companies may not like seeing such an accurate estimate but they know contesting it in an appraisal or court proceeding isn’t likely to end well for them.

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 $6,000 and estimates typically range between $7,000 and $15,000. In complex cases, fees may be significantly higher. Our pricing is straightforward and transparent. The overall cost depends on factors such as the size and complexity of your home and the available data and specifications.

Before any work begins, we provide you with a clear price quote and contract proposal. 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 started on your Scope of Loss Report Today

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(707) 595-8912