What is an Estimate?
An estimate is an approximation used to predict the cost, value, or effort needed to complete a particular task or project. In the context of personal and business insurance, estimates play a crucial role in determining the amount of coverage or compensation required for property damage, repairs, or replacements.
For example, when filing a claim after an accident or disaster, insurance companies often request an estimate from repair shops or contractors to determine the cost of fixing or replacing damaged property. This allows both the insurer and the policyholder to agree on the expected expenses.
Estimates are particularly important in homeowners or car insurance, where repairs or replacements may involve significant costs. A well-prepared estimate can help ensure that the policyholder receives adequate compensation to cover their losses.