Materials: A rising matter

[MIGA1626]

Hey guys! I have a client that had a wind claim about 2-3 months ago on 2 apartment building roofs. The carrier is wanting to pay based on the cost of materials at time of the claim. However the client's contractor is saying that the price on the materials is going to be another 6k based on today's prices. If this is true, are there any types of other coverages such EE or anything else that could help him out or is it just stuck at the prices it occurred at? Thanks!

 

[mattt]

If they have full replacement cost they should pay out the balance once it’s done. If it’s covered at acv that’s all you get. Depends on the policy.

 

[MIGA1626]

It is replacement cost well into the proper levels of coverage.

 

[mattt]

Then you should be good to go. From my experience they always cut a smaller check up front and then pay the balance minus deductible when it’s done.

 

[WinoBlues]

Not a P&C agent

However, 2-3 months ago. Was the delay the client, contractor, or the insurance company?
Just curious how that may change things.

 

[MIGA1626]

The contractor got the estimate done pretty quick in the process. It seems like it is the insurance company for the most part.