Insurance Coverage for Contents Restoration

One of the first questions families ask us: "Does insurance cover this?" The short answer is yes. Here's the full picture of how contents restoration coverage works.

What your policy covers

Your homeowner's insurance policy has two main components relevant to damage events:

• Dwelling coverage (Coverage A) — pays for structural repairs to your home (walls, floors, roof, built-in appliances).
• Personal property coverage (Coverage C) — pays for damage to your belongings (furniture, clothing, electronics, and everything else you own).

Contents restoration — pack-out, cleaning, storage, and pack-back — falls under Coverage C. It's a standard line item on damage claims and uses industry-standard pricing (Xactimate). Your insurance company is familiar with the process and the costs involved.

What you actually pay

Just your deductible. Your homeowner's deductible (typically $1,000-$2,500) applies once to the entire claim. It's not charged separately for structure and contents. After you meet your deductible, your insurance covers:

• Professional pack-out and inventory documentation
• Transportation to and from our facility
• All cleaning and restoration services
• Secure, climate-controlled storage for the duration of repairs
• Pack-back and placement in your home
• Replacement cost for items that can't be restored

We bill your insurance company directly. You don't pay us and wait for reimbursement — it goes straight to your insurer.

You choose who handles your belongings

This is one of the most important things to know: you have the right to choose your own contents restoration company.

Your insurance adjuster may recommend a company. Some adjusters work with "preferred vendors" — companies that have contracts with the insurer, often at negotiated rates. These companies may be perfectly fine. But you're not required to use them.

Under Arizona law, you select who handles your personal property. Your insurance company must work with the company you choose, and they cannot deny coverage because you didn't use a preferred vendor.

How the claim process works

1. You file a claim with your insurance company.
2. An adjuster is assigned and inspects the damage.
3. You choose a contents company — tell your adjuster you want to use us (or any company you prefer).
4. We submit a scope — a detailed estimate of services needed, using Xactimate industry-standard pricing.
5. Adjuster reviews and approves — there may be some back-and-forth on specific line items, but the process is standardized.
6. We perform the work — pack-out, clean, store, and pack-back.
7. We bill insurance directly — you don't receive a bill from us.

Replacement cost vs. actual cash value

For items that can't be restored, your insurance pays to replace them. But there are two ways they calculate the amount:

• Replacement Cost Value (RCV) — what it costs to buy a new, equivalent item today. A 5-year-old TV is replaced at today's price for a comparable TV.
• Actual Cash Value (ACV) — replacement cost minus depreciation. That same 5-year-old TV might be valued at 50% of its original price.

Most modern policies are RCV policies — they pay full replacement cost. Some older or economy policies are ACV. Check your declarations page or ask your agent. If you have an RCV policy, here's how it typically works:

1. Insurance pays ACV first (replacement cost minus depreciation).
2. You purchase the replacement item.
3. You submit the receipt, and insurance pays the remaining depreciation (called "recoverable depreciation").

Additional living expenses (ALE)

If you can't live in your home during repairs, your insurance's ALE coverage (Coverage D) pays for:

• Hotel or temporary rental housing
• Meals (above your normal food budget)
• Laundry services
• Pet boarding if needed
• Storage of items not included in the contents claim
• Other reasonable expenses caused by displacement

Keep all receipts. ALE is typically limited to a percentage of your dwelling coverage or a time period (usually 12-24 months).