Insurance Disaster Restoration & Supplement Auditor
Deterministic property claim estimation engine modeling regional Xactimate unit costs, IICRC S500 Cat 3 water standards, and statutory 10% Overhead + 10% Profit (O&P). Identifies carrier scope omissions on catastrophic tree strikes, flooded crawlspaces, and structural slope failures.
Insurance Bad Faith Doctrine & Xactimate Rules
1. Mandatory 10/10 Overhead & Profit (O&P)
Established case law (e.g., Gilderman v. State Farm; Trident v. Austin) establishes that whenever a complex property claim requires three or more distinct construction trades or extensive general contractor coordination, 10% Overhead and 10% Profit is mandatory on replacement cost value (RCV), regardless of whether the policyholder hires a general contractor.
2. IICRC S500 Cat 3 Water Extraction Standards
Floodwaters containing ground surface runoff, mud, silt, or sewage are classified as Category 3 Black Water. Standards legally mandate the complete removal and replacement of all porous building materials (subfloor insulation, submerged flexible HVAC ductwork, vapor barriers) combined with biocidal fogging and industrial LGR dehumidification.
3. Supplement Notice & Re-Inspection Rights
Initial adjuster estimates are legal starting points, not binding settlements. Policyholders maintain statutory rights under state insurance unfair claims practices acts to submit formal line-item contractor supplement scopes documenting discovered structural damage.