Frequently Asked Questions | Phase III Construction

Yes, in most cases. Standard homeowners insurance policies cover fire damage to your home’s structure and personal property under Coverage A (dwelling) and Coverage C (personal property). This includes the cost of demolition, cleanup, structural repairs, and reconstruction. Most policies also include Additional Living Expenses (ALE) coverage, which pays for temporary housing and increased living costs while your home is being restored. The key is making sure the scope of work is documented completely — carrier estimates frequently miss line items that belong in the claim.

Yes, hail damage to your roof is typically covered under the wind and hail peril in your homeowners policy. However, the payout depends on whether your policy pays Actual Cash Value (ACV) or Replacement Cost Value (RCV), the size of the hailstones, your deductible amount, and whether your deductible is a flat dollar amount or a percentage of your home’s insured value. Many Michigan policies now carry a separate wind/hail deductible calculated as a percentage — which can be significantly higher than a flat deductible. Review your policy carefully or call us for a free assessment.

ACV (Actual Cash Value) pays the depreciated value of damaged property — meaning the insurance company factors in the age and condition of materials before cutting a check. RCV (Replacement Cost Value) pays what it actually costs to replace damaged materials with new ones of similar kind and quality, without depreciation. Under an RCV policy, the carrier typically pays the ACV amount upfront and releases the withheld depreciation once repairs are documented as complete. The difference between ACV and RCV can be substantial — sometimes tens of thousands of dollars on a major loss.

Fire damage restoration timelines vary significantly based on the severity of the loss. A limited fire affecting one room, with smoke damage to adjacent areas, might take 6–10 weeks from start to finish. A major structural fire can take 6–12 months or longer when you factor in demolition, drying, odor remediation, permitting, and full reconstruction. The insurance claim process runs in parallel — and delays in claim approval can add time to the project. Phase III manages the claim and the construction simultaneously to keep things moving as efficiently as possible.

Water damage restoration typically happens in phases. Emergency water extraction happens within the first 24 hours. Structural drying (using industrial dehumidifiers and air movers) takes 3–5 days in most cases. If mold is present, remediation adds additional time before reconstruction can begin. Reconstruction — replacing drywall, flooring, insulation, cabinets, and finishes — can range from 1–2 weeks for a small loss to 4–8 weeks for a finished basement or multi-room loss. Total timeline from the call to project completion is typically 3–8 weeks for mid-sized losses, though larger projects take longer.

After ensuring everyone is safe and the immediate emergency is handled, your first steps are: (1) Do not re-enter the structure until it’s been declared safe. (2) Call your insurance company and report the loss promptly. (3) Document everything with photos and video before anything is moved or cleaned. (4) Contact a restoration contractor for emergency stabilization — boarding up, tarping, water extraction — to prevent further damage. (5) Arrange temporary housing if needed and keep all receipts. Do not start permanent repairs until your adjuster has inspected the property and the scope is agreed upon.

Yes. You have the right to choose your own licensed contractor for insurance-covered repairs. Your insurance company may have a preferred vendor network, but you are not required to use it. In fact, it’s often in your best interest to choose an independent contractor who is working for you — not the carrier. A contractor who specializes in insurance restoration will review the carrier’s estimate, identify missing or underpaid items, and submit supplements on your behalf. This advocacy can significantly increase your final payout.

A supplement is a revised or additional estimate submitted by your contractor to the insurance company after the initial adjuster estimate is issued. It documents items that were missed, quantities that were underestimated, and line items that legitimately belong in the scope but weren’t included in the carrier’s first pass. Common supplement items include Overhead and Profit (O&P), code-required upgrades, permit fees, and additional damaged components discovered during the work. Supplementing a claim is standard practice in insurance restoration and is not the same as inflating a claim — it’s making sure the insurance company pays for what the policy actually covers.

This is one of the most common concerns homeowners have — and the honest answer is: it depends. Whether and how much a claim affects your rates depends on your insurer, your claims history, your state, and the nature of the claim. Some carriers do not surcharge for weather-related claims (hail, wind, storm) because they’re considered “acts of God” rather than homeowner negligence. Others may. What we can tell you is this: if you have a legitimate covered loss and don’t file, you’re essentially paying for insurance you’re not using. The best approach is to understand your policy before deciding, and to make sure any claim you file is documented and handled correctly from the start.

Overhead and Profit (O&P) is a standard markup applied to a restoration estimate to cover a general contractor’s indirect business costs (overhead) and reasonable profit margin. The industry standard is 10% overhead and 10% profit, applied to the total direct cost of the project. Overhead covers real business costs — insurance, licensing, vehicles, office, administrative staff, estimating software — that aren’t captured in individual line items. Profit allows the business to remain viable and take on the financial risk of a construction project. O&P is appropriate on any project where a licensed general contractor is managing work across multiple trades, and it’s a standard line item that insurance companies are obligated to pay when warranted.

We start by reviewing the carrier’s initial estimate line by line against what we actually found on-site. Where items are missing, we document them with measurements, photos, and code references and submit a supplement. Where quantities are wrong, we provide our own measurements. Where O&P is omitted, we make the argument with industry citations. When carriers push back on legitimate items, we respond with documentation — not frustration. We’ve been doing this in Southeast Michigan since 1993 and we know what carriers are likely to challenge and how to respond. We don’t accept the first number as the final number.

Yes. We work with all major homeowners insurance carriers operating in Michigan, including State Farm, Allstate, Farmers, Auto-Owners, Citizens, Hanover, AAA, Progressive, and others. We’re familiar with each carrier’s claim processes, documentation requirements, and common areas of dispute. Whether your carrier is cooperative or difficult, we know how to navigate the process and get your claim paid correctly.

Phase III Construction serves homeowners throughout Southeast Michigan, including Wayne County, Oakland County, Macomb County, Washtenaw County, and surrounding areas. Our primary service area includes Westland, Livonia, Dearborn, Garden City, Canton, Plymouth, Wayne, Inkster, Redford, Dearborn Heights, Taylor, Romulus, Southgate, Wyandotte, Ann Arbor, Ypsilanti, Farmington Hills, Southfield, Troy, Sterling Heights, Warren, and neighboring communities. Not sure if we cover your area? Call us at (734) 237-7322 and we’ll let you know.

Yes. Phase III Construction LLC holds Michigan General Contractor License #262000615. We carry full general liability insurance and workers’ compensation coverage on every project. We’re happy to provide a certificate of insurance upon request. If any contractor — including us — won’t provide proof of licensing and insurance, that’s a reason to look elsewhere.

The easiest way to get started is to call us at (734) 237-7322. We’ll schedule a free property inspection, walk the damage with you, and give you an honest assessment of what you’re dealing with. If you’ve already filed a claim, we’ll review the carrier’s estimate at no cost. If you haven’t filed yet, we’ll help you understand what you have before you decide. There’s no pressure and no obligation — just a straight conversation about your situation and what your options are.