Jane Dotson
Kitchen cabinets are a common source of contention between insurance adjusters and claimants. This is because, in many cases, the face panels of water-damaged cabinets can be removed and replaced with new interiors, which is a cheaper alternative to replacing all the cabinets. However, this is more labour-intensive for contractors, who would prefer to replace all the cabinets to avoid the additional work and responsibility if they make a mistake.
In some states, such as California, there are provisions that require items in the same area to be replaced if the damaged ones cannot be matched. This is to maintain a reasonably uniform appearance. However, this does not mean that the new cabinets have to be an exact match, as long as they achieve a reasonable appearance. For example, if the original cabinets were white, a similar shade of white for the new cabinets would be considered a reasonable match.
Insurance adjusters will often try to repair or replace only the damaged cabinets to minimise costs for the insurance company. They are not responsible for matching the colour scheme of the kitchen and will only fund the repair or replacement of the damaged cabinets. This can result in a mismatched kitchen, which is frustrating for homeowners. To avoid this, homeowners can hire a public adjuster, who can help them get the maximum compensation for their damaged kitchen cabinets by reading and understanding the insurance policy and proving the extent of the damage.
What You'll Learn
Kitchen cabinet insurance coverage
Kitchen cabinets are typically covered by homeowners' insurance, but the extent of the coverage depends on the cause of the damage and the type of insurance policy held.
Causes of Damage Covered by Insurance
Kitchen cabinet damage covered by insurance includes:
- Sudden water leakage due to plumbing failure.
- Chronic water leakage that was not immediately obvious.
- Fire or any other thing out of the control of the homeowner.
Causes of Damage Not Covered by Insurance
Kitchen cabinet damage not typically covered by insurance includes:
- Damage caused by any preventable cause.
- Damage caused by progressive failure of plumbing that could have been mitigated early on.
- Gradual damage to cabinets due to routine usage or ageing.
- Damage caused by negligence, such as failing to fix a known plumbing issue.
Insurance Coverage
If the cause of the damage is covered by insurance, the insurance company will first try to repair the cabinets. If the cabinets cannot be repaired, they will pay to replace only the damaged cabinets, not the entire set. It is not the responsibility of the insurance provider to match the colour scheme of the kitchen.
Homeowners' insurance policies generally fall into two categories: replacement cost and actual cash value. A replacement cost policy will cover the full cost of returning the home to the standard it was in prior to the incident, minus the deductible. Conversely, an actual cash value policy will provide coverage up to the depreciated value of the damaged property, minus the deductible.
In some states, such as California and Florida, insurance companies are required by law to ensure that replacements match the surrounding area in terms of quality, colour, and size. This is known as a "matching law". Matching coverage can also be added to a policy as an endorsement or add-on for a low price.
Dealing with Insurance Adjusters
Insurance adjusters working for insurance companies will often try to minimise the cost of claims. They may propose patching or partial replacement rather than full replacement, even when this will result in a mismatch. It is recommended that homeowners review their policies in detail, consult a public adjuster, and be prepared to negotiate with insurance companies to ensure they receive appropriate compensation.
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Kitchen cabinet damage causes
Kitchen cabinets are susceptible to damage from a variety of factors, and water damage is one of the most common issues. Water leaks from pipes, dishwashers, sinks, or appliances can cause cabinets to become waterlogged, leading to structural damage, sagging, crumbling, and rot. High humidity can also cause cabinets to swell, with visible signs such as bubbling, peeling paint, and warping. This type of damage is often covered by insurance if it is sudden or chronic and not due to preventable causes or progressive failure of plumbing.
Another cause of damage is extreme temperature and moisture changes. Wood cabinets adjust to the humidity and temperature of the environment, swelling in humid months and compressing when humidity lowers. This movement can cause paint to wear off, resulting in cracks and fractures in doors, joints, or corners. Maintaining a constant humidity level between 40% and 50% can prevent these issues.
Improper preparation of cabinetry before painting can also lead to damage. Painting over an unclean surface or wet wood can result in paint bubbling and peeling, forming unsightly fissures. Pests such as termites and roaches are also a concern, as they are attracted to grease residue and moist environments, and can severely damage wooden cabinets.
Poor installation can weaken the overall structure of a cabinet, leading to cracks and damage over time. Improperly assembled joints can compromise the integrity of the cabinet, highlighting the importance of professional installation.
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Cabinet repair or replacement
When it comes to repairing or replacing cabinets, insurance adjusters will first determine the cause of the damage. If the damage is caused by something out of the homeowner's control, such as sudden water leakage or fire, the insurance company will likely cover the cost of repairs or replacement. However, if the damage is due to preventable causes or gradual wear and tear, the insurance company may not provide compensation.
In the case of covered damage, the insurance company will then decide whether the cabinets need to be repaired or replaced. They will usually try to repair the cabinets if possible and may only fund the replacement of the directly damaged cabinets, rather than the entire set. It is important to note that insurance providers are not responsible for matching the colour scheme of the kitchen.
Homeowners can hire a public adjuster to help them get the maximum compensation for their damaged cabinets. Public adjusters can read and understand insurance policies, prove the extent of the damage, and expedite the claims process. They typically charge a fee of up to 15% of the final settlement.
When repairing cabinets, professionals can adjust hinges, tighten latches, add bumpers, secure loose knobs, fill stripped screw holes, and touch up nicks and scratches. For cabinet replacement, homeowners can choose between custom-made or prefabricated cabinets. Custom cabinets allow for more personalisation in terms of design, wood stains, and knobs, but prefabricated cabinets are usually more cost-effective and quicker to install.
In some states, such as California, there are "matching laws" that require insurance companies to ensure that replaced items match the surrounding area in terms of quality, colour, and size. This means that if damaged cabinets cannot be matched to the existing ones, the insurance company may have to replace all the cabinets to achieve a reasonably uniform appearance. However, not all states have such laws, and insurance adjusters often push for less expensive patching and repairs instead of full replacement. Homeowners can negotiate with the adjuster or go over their head to a supervisor if they feel they are being treated unfairly.
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Matching laws for home insurance
In some states, such as Florida, if replaced items do not match in quality, colour, or size, the insurance company is obligated by law to make reasonable repairs or replacements to items in adjoining areas. This is known as the "matching endorsement". This add-on to home insurance policies ensures that when a claim is filed for repairs or replacements, the surrounding undamaged areas will also be addressed if necessary. The cost of this add-on is generally low, at around $25 per year.
However, it is important to note that insurance companies often push for less expensive patching and resist full replacement, even in states with matching laws. This can lead to disputes between insurance adjusters and homeowners, who may feel that they are not being treated fairly. In such cases, it is recommended to escalate the issue to a supervisor or hire a public insurance adjuster to advocate on their behalf.
The specific laws and regulations regarding matching in home insurance vary by state. For example, California law includes a provision that requires the replacement of items in the same area if the damaged items cannot be matched. On the other hand, Ohio's regulation focuses on achieving a reasonably comparable appearance, rather than a perfect match.
Ultimately, the interpretation of matching laws and their application to specific claims can be complex and may require legal expertise to navigate. Homeowners dealing with insurance claims are advised to carefully review their policies, understand their rights under state law, and seek professional assistance if needed.
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Hiring a public insurance adjuster
A public insurance adjuster is a licensed professional who can help you with the claims process and ensure your payout is fair and an accurate reflection of the damage and your coverage. They work on behalf of policyholders and are especially useful if you think your claim was poorly handled, if your damage is severe, or if you simply want an insurance professional to navigate the claims process on your behalf.
When to Hire a Public Adjuster
There is no specific rule regarding when to hire a public adjuster, but there are some circumstances that make it worth considering:
- You are filing a large claim for high-value, significant, or complex damage to your home, such as flooding or a fire.
- You aren’t confident with the assessment performed by your insurer’s adjuster.
- You feel your insurer’s adjuster underestimated your claim or that your payout isn’t fair.
- You need assistance with a complex claim or the claims process.
- You find working with insurance companies stressful.
- You’ve had a poor claims experience in the past.
- You are too busy to correspond with your insurance company.
How to Find a Public Adjuster
Finding a public insurance adjuster is relatively easy. You can start by searching the National Association of Public Insurance Adjusters (NAPIA) website, which lists every public adjusting firm required to be licensed in their state of operation. You can also get a recommendation from friends or family members. Reading online customer reviews can be helpful too.
What to Expect from Hiring a Public Adjuster
When you hire a public adjuster, they will handle the entire claim process on your behalf. They will visit your home to survey the damage, do a comprehensive review of your claim, calculate their recommended payout, and coordinate with your insurance company to process your payout.
Before settling the claim, you have the opportunity to negotiate with the insurance company to get a higher payout. Your public adjuster will act as the liaison so you never have to speak with a representative or negotiate yourself.
A report from the Florida Association of Public Insurance Adjusters (FAPIA) found that homeowners who hired their own insurance claims adjuster received a higher payout from their insurers. According to the study, the typical settlement for homeowners with a public adjuster was about $22,266, compared to $18,659 without a public adjuster.
However, there is no guarantee that you will get more money by hiring a public insurance adjuster. Your insurance company will consider the public adjuster’s findings, but they may not agree with their recommended payout.
Pros of Hiring a Public Adjuster
- Knowledge and Professional Standards: Most states have strict standards for public adjusters, who must be licensed and often need to be members of a professional organisation.
- Peace of Mind: A public adjuster becomes your advocate, acting on your behalf and doing the thinking and negotiating for you.
- Nothing is Missed in the Claim: A public adjuster can help ensure that no damage is overlooked, potentially resulting in a larger insurance settlement.
- More Claim Settlement Money: A public adjuster can sometimes land larger settlement claims for their clients, as they are more likely to recognise and ask for additional money.
Cons of Hiring a Public Adjuster
- May Only Do Major Claims: Many public adjusters only want to work on large-scale claims where there would be a big payday for them.
- Paying the Public Adjuster: Public adjusters typically charge a percentage of the final claim payout, ranging from 5-20%.
- Time to Settle: Having a public adjuster involved can sometimes slow down the process due to increased negotiation.
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Frequently asked questions
Insurance adjusters do not have a specific name for kitchen cabinets. However, they do refer to them as "cabinets" when discussing insurance claims related to water damage, flooding, or other types of damage.
It depends on the cause of the damage and the terms of your insurance policy. If the damage is caused by sudden water leakage, chronic water leakage that was not obvious, or a fire, your insurance will likely cover the cost of repairing or replacing the damaged cabinets. However, if the damage could have been prevented by the homeowner or is due to progressive failure of plumbing, your claim may be rejected.
In this case, the insurance company will typically replace the damaged cabinets. However, they will only fund the replacement of the specific cabinets that were damaged and are not responsible for matching the colour scheme of your kitchen.
In some states, such as California, insurance companies are required to ensure a reasonably uniform appearance. This may involve replacing all the cabinets in the same area if the damaged ones cannot be matched. However, this is not the case in all states, and it is important to review your insurance policy and local laws.
A public insurance adjuster can be beneficial in negotiating a higher settlement amount and ensuring that all necessary repairs are included in the claim. They typically charge a fee of up to 15% of the final settlement amount and can guide you through the claims process.
