Is it Worth the Cost of Restoration?
DAMAGE ASSESSMENT Is The Claim Legitimate You need to consider several points to honestly answer the question.
1) Is the damage new or old looking? 2) What allegedly caused the damage? 3) Is this type of damage typical of the alleged cause? 4) Has the item been repaired before - Is it an old repair gone bad? Can It Be Fixed Just about any furniture related item can be repaired or restored.
The question is-Is it worth the cost of restoration? Restoration Costs It is generally impossible to accurately price breakage, fire, or water damage without a "hands on" visual inspection.
Complete refinishing, painting and upholstery for the most part is on a standardized pricing scheduled.
An adjuster's and claimant's best asset can be the experienced eye of a skilled craftsman.
Many times an item can look "beyond repair," but can be restored very economically or can look "not to bad" and not be worth the hidden effort (extra costs) that will be required to restore.
The Master's Touch provides guaranteed fixed restoration costs after a comprehensive inspection.
You will know the exact cost before the job begins and it won't change during processing or after completion.
Pre Existing Damages During a major restoration (complete upholstery or refinishing) some prior damage or defects are normally taken care of as part of the process.
Examples: 1) When a table is refinished to remove a deep scratch, previous scratches not part of the claim are often removed by the normal processing.
2) Ellen's new dog just ate a cushion from her five year old sofa.
Although it was in good shape and not showing much wear, finding matching fabric to replace only the one cushion would be just about impossible.
Complete recovering is the only solution.
In both cases the claimant's furnishings receive an upgrade to their original condition before the damage at the carrier's expense.
Sometimes this can't be avoided.
Depending on the coverage, an allowance settlement would be a good way not to over pay a claim.
The claimant, at their option, can then pay for the upgrade if desired.
VALUE ASSESSMENT What Is It Worth It doesn't take a long time in the claim business before you'll witness a claimant's worthless piece of junk that can't be sold at a yard sale before incurring some kind of damage, suddenly transform into a priceless collectible after its been damaged or destroyed, thus an excellent scenario of explaining the difference between "Replacement Cost" and actual or fair "Market Value.
" There are two primary "replacement costs.
" One obviously, is replacement with a new item.
Many "full value" homeowner's insurance policies are now written with this replacement cost.
The other is "replacement cost with a comparable.
" That means to replace the lost or damaged item with an item of "market value.
" Different laws and statutes, have very different definitions to all the different types of value, i.
e.
, Fair Market Value, Actual Cash Value, Market Value, Replacement Value New, Replacement Value New less Depreciation, Replacement with a Comparable.
It is impossible to make a broad sweeping statement that would apply to all Jurisdictions when appraising an item and trying to determine Actual Cash Value, depending on the interpretation of the governing laws, regional Fair Market Value and perhaps the Collectible Value of a particular item that is currently in vogue.
Now, to answer the question you didn't ask! When faced with an irate claimant whose sow's ear has turned into a silk purse, try showing them comparable items used in arriving at the particular value.
Just telling them a value when they have their mind set on a much higher value is a waste of time.
Most people are sensible and, when proof is offered, they will accept the bad news.
If they just won't be satisfied, you may have to seek an outside opinion or an appraiser.
If, in fact, they really do have a sow's ear, a reputable appraiser will not come up with a silk purse value.
Once the value is determined, comparing it to the restoration cost will easily determine the economical feasibility of which route to take.
Replacement Cost If an item is still being manufactured and retailed its very simple to determine replacement cost.
What if the same item is not available new today? It's not necessary to find a new item, identical to the old, to determine the replacement cost.
Similar items have similar costs.
A used drop leaf table can be replaced with another used drop leaf table (check your local "Antique" dealer), or replaced with a new one from a local furniture retailer.
The theorem is to compare apples with apples.
Don't replace an old inexpensive table (bottom of the line when it was new), with a new expensive one (top of the line in today's market).
CLAIMANTS ASSESSMENT Sentimental Assessment "Antique" heirlooms have a high value in owners mind.
The "Antique," in most cases is simply used furniture.
"I know it's an Antique because my grandmother bought it when she got married and she was eighty-seven when she died.
" Using this logic everything fifty years "old" is an Antique.
Not true! Antique furniture is better defined as, an original item of classic design.
"Period Furniture" fits well-defined criteria.
The value of an item does not rest exclusively on its age, but how it conforms to the criteria and most importantly what condition its in.
A true piece of Period Furniture in broken down and/or patched up condition has little Antique or Collectable value.
Valuable Antiques are rare.
That's why they are valuable.
Probably more then ninety-five percent of what the general public calls "Antique" is nothing but used furniture of Period Furniture in a condition far from pristine.
THE BOTTOM LINE Conclusion Paying a small fee (in some cases refundable) for a professional restoration damage assessment doesn't cost, it pays! An adjuster gets more than the necessary information to settle a claim; A well-documented assessment with accurate pricing can save thousands of dollars per claim generated by needless replacement or over valued cash settlement.
Is it really destroyed? Get an expert's written statement before you "cash it out.
" Contact a Professional Restorer for money savings help on your next claim!
1) Is the damage new or old looking? 2) What allegedly caused the damage? 3) Is this type of damage typical of the alleged cause? 4) Has the item been repaired before - Is it an old repair gone bad? Can It Be Fixed Just about any furniture related item can be repaired or restored.
The question is-Is it worth the cost of restoration? Restoration Costs It is generally impossible to accurately price breakage, fire, or water damage without a "hands on" visual inspection.
Complete refinishing, painting and upholstery for the most part is on a standardized pricing scheduled.
An adjuster's and claimant's best asset can be the experienced eye of a skilled craftsman.
Many times an item can look "beyond repair," but can be restored very economically or can look "not to bad" and not be worth the hidden effort (extra costs) that will be required to restore.
The Master's Touch provides guaranteed fixed restoration costs after a comprehensive inspection.
You will know the exact cost before the job begins and it won't change during processing or after completion.
Pre Existing Damages During a major restoration (complete upholstery or refinishing) some prior damage or defects are normally taken care of as part of the process.
Examples: 1) When a table is refinished to remove a deep scratch, previous scratches not part of the claim are often removed by the normal processing.
2) Ellen's new dog just ate a cushion from her five year old sofa.
Although it was in good shape and not showing much wear, finding matching fabric to replace only the one cushion would be just about impossible.
Complete recovering is the only solution.
In both cases the claimant's furnishings receive an upgrade to their original condition before the damage at the carrier's expense.
Sometimes this can't be avoided.
Depending on the coverage, an allowance settlement would be a good way not to over pay a claim.
The claimant, at their option, can then pay for the upgrade if desired.
VALUE ASSESSMENT What Is It Worth It doesn't take a long time in the claim business before you'll witness a claimant's worthless piece of junk that can't be sold at a yard sale before incurring some kind of damage, suddenly transform into a priceless collectible after its been damaged or destroyed, thus an excellent scenario of explaining the difference between "Replacement Cost" and actual or fair "Market Value.
" There are two primary "replacement costs.
" One obviously, is replacement with a new item.
Many "full value" homeowner's insurance policies are now written with this replacement cost.
The other is "replacement cost with a comparable.
" That means to replace the lost or damaged item with an item of "market value.
" Different laws and statutes, have very different definitions to all the different types of value, i.
e.
, Fair Market Value, Actual Cash Value, Market Value, Replacement Value New, Replacement Value New less Depreciation, Replacement with a Comparable.
It is impossible to make a broad sweeping statement that would apply to all Jurisdictions when appraising an item and trying to determine Actual Cash Value, depending on the interpretation of the governing laws, regional Fair Market Value and perhaps the Collectible Value of a particular item that is currently in vogue.
Now, to answer the question you didn't ask! When faced with an irate claimant whose sow's ear has turned into a silk purse, try showing them comparable items used in arriving at the particular value.
Just telling them a value when they have their mind set on a much higher value is a waste of time.
Most people are sensible and, when proof is offered, they will accept the bad news.
If they just won't be satisfied, you may have to seek an outside opinion or an appraiser.
If, in fact, they really do have a sow's ear, a reputable appraiser will not come up with a silk purse value.
Once the value is determined, comparing it to the restoration cost will easily determine the economical feasibility of which route to take.
Replacement Cost If an item is still being manufactured and retailed its very simple to determine replacement cost.
What if the same item is not available new today? It's not necessary to find a new item, identical to the old, to determine the replacement cost.
Similar items have similar costs.
A used drop leaf table can be replaced with another used drop leaf table (check your local "Antique" dealer), or replaced with a new one from a local furniture retailer.
The theorem is to compare apples with apples.
Don't replace an old inexpensive table (bottom of the line when it was new), with a new expensive one (top of the line in today's market).
CLAIMANTS ASSESSMENT Sentimental Assessment "Antique" heirlooms have a high value in owners mind.
The "Antique," in most cases is simply used furniture.
"I know it's an Antique because my grandmother bought it when she got married and she was eighty-seven when she died.
" Using this logic everything fifty years "old" is an Antique.
Not true! Antique furniture is better defined as, an original item of classic design.
"Period Furniture" fits well-defined criteria.
The value of an item does not rest exclusively on its age, but how it conforms to the criteria and most importantly what condition its in.
A true piece of Period Furniture in broken down and/or patched up condition has little Antique or Collectable value.
Valuable Antiques are rare.
That's why they are valuable.
Probably more then ninety-five percent of what the general public calls "Antique" is nothing but used furniture of Period Furniture in a condition far from pristine.
THE BOTTOM LINE Conclusion Paying a small fee (in some cases refundable) for a professional restoration damage assessment doesn't cost, it pays! An adjuster gets more than the necessary information to settle a claim; A well-documented assessment with accurate pricing can save thousands of dollars per claim generated by needless replacement or over valued cash settlement.
Is it really destroyed? Get an expert's written statement before you "cash it out.
" Contact a Professional Restorer for money savings help on your next claim!
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