ST PAUL ROOFING CONTRACTOR/ ST PAUL SIDING CONTRACTOR/ REPAIR VS REPLACE AND THE PRINCIPLE OF INDEMNITY
REPAIR VS REPLACE
Should roofing, siding, flooring, etc. be repaired or replaced? The principle of indemnity is the basis and foundation of insurance coverage. The objective is that the insured should neither reap economic gain nor incur a loss if adequately insured. This objective requires that the insured receive a payment equal to that of the covered loss so that the insured will be restored to the same position after the loss as before the loss.
Then there’s the issue of like kind and like quality. Note that the Loss Settlement Provision of property policies do not say identical kind and quality. Claim settlements shall include a method of repair that maintains LKQ.
If damaged property can be repaired and maintain a ‘reasonably uniform appearance’, per the Unfair Claims Settlement Practices Act, then do so. First, it’s the right thing to do, second, in most cases, the insured will appreciate you not gaming the claim and their insurance company. Third, when the same insured has a claim later, they will call you – you have established credibility in their eyes. Forth, the margins on repairs and maintenance is 50-60% NET profit. Net, not gross.
Some carriers insist that only the portion of the damaged property (“direct physical loss”) should be replaced, regardless of what the ‘patch’ looks like. Some cite the Loss Payable provision where it states “that part of the damaged building.” How can an insured replace building materials that are not available? In this case, it would be impossible to repair with materials of LKQ. Their argument is unpersuasive in my view, because the insured has not been indemnified if they have not been restored to what they had before the loss. A mismatching repair (obvious patch) on a roof that had a reasonably uniform appearance before the loss, does not indemnify the insured.
So, if damaged property can be repaired, where do you stop. There are three phrases that you should familiarize yourself with. Line of sight, break in continuity and contiguous area. Line of sight is defined as “a straight line along which an observer has unobstructed vision.” Break in continuity is defined as “an interruption of building materials in a building when the material’s continuity is suspended or interrupted.” Contiguous area is defined as “Things that are contiguous are near or next to but not necessarily touching and yet they are also defined as “touching, sharing a border.”
Doors create a break in line of sight, but doorways do not. Generally, doorways and entryways are considered a break in line of sight, even if there is no door. If some building material interrupts the flow of the same building material, e.g., a tile floor separates two sections of identical carpeting, the tile floor has created a break in continuity. Likewise with a fur down, if a ceiling is damaged and requires painting, a fur down that separates a ceiling into two, non-contiguous areas, is the break in continuity.
On the exterior of a building, generally, an outside corner is a break in continuity and an inside corner is not, because of the line of sight. A fence is an excellent example of this. If hail has damaged the stain on a fence, where do you stop staining? Obviously, if you are standing in the back yard of a residence, the entire inside of the fence (inside corners) is line of sight and should be included. But not so fast on the outside. If the back yard is the standard rectangle shape, then there will be at least two outside corners. These are breaks in continuity and the repair stops there.
When painting siding, when you stand at an outside corner, the two faces, even though they have identical paint, have quite a different shade variance, due to lighting differences. An outside corner is the break in continuity.
During storm season, many companies come into an area temporarily as “storm chasers.” They work an area after a storm, then leave to go on to the next storm area. Many of these companies repair roofs as fast as they can before moving on because they will not be here to call for warranty work and/or service calls. North End Contracting will be around after the storm.
North End Contracting offers stress-free financing options for homeowners throughout Greater Twin Cities Metro Area. During a consultation, we can discuss with you our financing options we qualify you on the spot, designated to fit your specific project.
Our financing options cover work for ROOFING SIDING AND WINDOWS we will help make the entire process easier. North End Contracting 3rd party financing options were designed with you in mind, which means we want your roofing & siding project to go as smoothly as possible, including the expense. ZERO DOWN ZERO INTEREST ZERO PAYMENTS FOR 12 MONTHS CALL NOW 651-488- 8605
If you are looking for a licensed Roofing and Siding contractor in the TWIN CITIES MN Area call NORTH END CONTRACTING at 651-488-8605. NORTH END CONTRACTING WWW.NEROOF.COM OFFERS FREE STORM DAMAGE INSPECTIONS. Service areas include the Twin Cities, MN.
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