Before You Settle Your Fire Claim — Will the Rebuild Be Fully Funded?
This page applies only to policyholders who intend to rebuild after a fire. If you are pursuing a cash settlement, visit our Cash Settlement Claim Help page.
PAAC takes control of the fire damage claim process by establishing scope, coordinating evidence, and directing settlement decisions before outcomes are finalized.
The key issue is not the settlement amount — it’s whether the settlement will fund the rebuild.
Why Fire Claims Run Out of Money
Fire claims run out of money because of how the claim is handled.
There are two approaches:
Contingency-Fee Claim Handling
- A percentage fee is taken from the settlement
- That fee is removed before rebuilding begins
- The rebuild must fit whatever money remains
PAAC — Construction & Advocacy Claim Handling
- Rebuild requirements are defined first
- The claim is proven based on real rebuild costs
- No percentage-based fees are deducted from rebuild funds
Same settlement.
Different out-of-pocket result
Claim Handling Comparison
Illustrative example based on common fire claim scenarios. Actual results vary by loss.
| Contingency-Fee Claim Handling | PAAC — Construction & Advocacy Together | |
|---|---|---|
| Insurer starting position | $650,000 | $650,000 |
| Settlement reached | $1,000,000 | $1,000,000 |
| Claim fees | Percentage-based fees deducted from settlement | No percentage-based fees deducted from rebuild funds |
| Funds available to rebuild | $900,000 | $1,000,000 |
| Out-of-pocket required | $100,000 | $0 |
| Rebuild outcome | Scope reduced • Work stalls | Full scope • Rebuild completes |
What PAAC Does Differently
PAAC is a construction company supported by professional advocates.
PAAC supports the policyholders in fulfilling their contractual responsibilities by aligning:
- Mitigation – remediation and demolition performed to support the final rebuild scope
- Repair – real construction requirements defined upfront, compliant with all applicable codes.
- Proof of Loss – claim documentation and valuation based on work that will actually be performed
The scope that is built is the scope that is proven.
The claim is resolved based on real work — not estimates alone.
Why This Matters Before You Commit
Once a claim approach is chosen and fees are set:
- Funds are already allocated
- Repair options narrow
- Shortfalls often appear only once work is underway
At that point, correcting course is difficult and often expensive.
Before You Settle Your Fire Claim — Speak With PAAC
A focused review to help prevent out-of-pocket costs during the rebuild. A fire claim does not fail at settlement.It fails when the rebuild runs out of money.
PAAC exists to prevent that outcome.