Understanding the difference between Water and Mold line items in Xactimate is important to make sure you maximize the total estimates.
1. Understand Mold Coverage/Policy Limits
To understand the mold coverage and policy limits, you need to familiarize yourself with the insurance company's guidelines and policies related to mold claims.
This step involves reviewing the insurance policy language and identifying any specific coverage or limitations related to mold damage.
Pay attention to the policy's definitions, exclusions, and limitations for mold-related claims.
Make sure to understand the coverage limits and any additional requirements for submitting mold claims.
You will need to know this before starting as the total estimate may exceed the limit.
In this case, a discussion needs to take place with the homeowner regarding payment for the amount over the limit.
2. WTR VS HMR line items
When estimating in Xactimate for Mold Related items, make sure you are using the HMR(Hazardous Materials) instead of WTR under the Category code.
- These items are priced to reflect working in a Hazardous environment.
3. Mold Protocol to determine scope of work
It is important to obtain testing and a written protocol from an IH(Industrial Hygienist)
- This will justify your billing as the steps in the Protocol need to be completed, as the IH will need to conduct a Post Test to make sure the Mold Remediation is done properly.
Using the Mold Protocol to Justify line item charges
- Make sure to obtain testing results proving Mold is present
- Make sure to hire an IH(Industrial hygienist) to obtain a written Protocol so there is no question as to the scope of work you are estimating
- Make sure photos clearly depict all work being done(Pre/During/ and Post Remediation photos)
4. Understand IICRC recommendations for Mold
It would be recommended that anyone involved in Mold Remediation, including estimators. become certified by the IICRC for Mold Remediation
Often times, all parties reviewing the Mold Estimate for payment will need justification and being armed with education is the best way to explain the estimate
5. Understand Mold Coverage/Policy Limits
Mold Coverage on insurance policies is limited. It is very important to make sure the homeowner is in contact with their insurance company to find out what the coverage is. Most often, the coverage is far less than the cost to do the work.
- For this reason, you must prepare a preliminary estimate before work is started so the Homeowner can make a decision if they want to proceed as they will most likely have to come out of pocket for a portion of the cost.
- It can be a very costly mistake to begin without having everyone on the same page regarding the costs involved
6. Separate Water Mitigation from Mold
It is very important to make contact with the insurance company immediately to discus the situation
- Typically there is a cross over between Mold Remediation and Water Mitigation
- This will need to be discussed with the insurance adjuster.
The reason for this is, given the fact that the Mold portion typically has a very small limit, all of the material removals and drying items can be added to the Water mitigation estimate.
Often, Mold is discovered after a water damage claim, and Mold is discovered after removals begin. It is important to stop at this point and speak to the Homeowner and the adjuster.
7. Prepare to create the Estimate
Sketch and annotate the rooms involved
Use this to Highlight the affected areas in the affected rooms
- The Mold Remediation line items will go into the affected rooms(Contained Areas) as outlined in the Mold Protocol
- If all the demo/removals are captured on the Mitigation estimate, the Mold estimate will consist of Hepa vacuuming, cleaning items, the use of Negative Air Units, Containment, etc
- Contents items will need to be addressed first- they can either be removed from the area, or hepa vacuumed and covered in the affected area.
8. Line item examples for Mold Remediation
Here are some example line items for Mold Remediation estimates:
HMR HEPAVAS - Hepa Vacuuming - Detailed - Per SF) - This line item is used for the exposed areas after material removals
HMR HEPAW - Hepa Vacuuming Exposed framing - Walls - You can use this in lieu of Detailed
HMR HEPAVAL - Hepa Vacuuming - Light- Per SF - This item is used for the remaining areas in the containment (areas with no demo/removals)
HMR CLMAV - This line item is used for cleaning all areas in the containment- Referred to as a 'damp wipe'
HMR CLNJST+- Clean floor or Roof Joist system- This is used in particular in basements when the ceiling is unfinished as it is much more time consuming to clean open floor joist systems
WTR DHM - Dehumidifier- During the Mold Remediation portion, you will need to keep the area dehumidified to control the environment
HMR NAFAN - Negative air fan/Air scrubber
When estimating for HEPA Vacuuming always charge the area *2
- The recommendation is to do what is known as a 'Hepa Sandwich'
- HEPA Vacuum, Damp Wipe, HEPA Vacuum
In the Generals Tab- these are typical additional items
HMR PPERC - Respirator cartridge- HEPA
HMR PPERF - Respirator- Full Face
HMR EQD - Equipment decontamination charge
HMR BIDITM - Hazardous Material Remediation (for adding the cost of the Industrial Hygienist)
HMR FHEPA - Add for HEPA filter (for negative air unit)
HMR FHEPA<< - Add for HEPA filter (for HEPA Vacuum)
