#20 -2023 Matt Everson Defining the damage, a builder’s guide to Insurance scope of loss reports.

A Scope of Loss Report is the insurance industry term for an estimate of the rebuilding cost of a lost house due to a severe event like fire, hurricane, or tornado. It does not reflect the cost of the house that will be rebuilt. It reflects rebuilding the specific house that was lost, exactly as it was, to the current building codes. The goal of which is so that the insurance industry knows what to payout based on the policy that was purchased.

BW Builder was created in the aftermath of the Tubbs wildfire in 2017. Matt Everson and his partner Bill Wallace saw that insurance companies counted on the fact that disaster victims couldn’t find a good way to report their losses and collect the insurance they deserved. Insurance companies also don’t define how these losses must be reported, yet they rely on the disaster victim to report the loss themselves.

Regardless of being underinsured a policy holder is due the full amount of their policy, not 70 or 80% of the policy value, which is on average what is being paid out. So, BW Builders began creating accurate scope of loss reports for property owners who must demonstrate the value of their loss. These estimates are incredibly detailed, down to the number of nails used, and are not created in the typical way that a builder prices building a house, yet builders are in the unique position of having accurate knowledge of the cost of construction in their specific market.

Through technical innovations and a desire to help, not further harm, Matt and Bill provide estimates at a fraction of the cost of the typical private insurance adjuster. They are now getting the word out on how to do this work. They are actively recruiting other builders to use the systems they developed to help disaster victims recoup what they deserve from the insurance industry to rebuild their communities.

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