Roof Insurance Claim Steps - My Roof Was Damaged, Now What?
Navigating the Insurance Claim Process When You Have Roof Damage
Roof Insurance Claim
Hail Bruise On An Architectural Shingle
What Should Happen When You Have Roof Damage?
Contact your insurance company to begin the insurance claim process. Sometimes they ask a contractor to validate damage. Trust is critical here. Storm chasing contractors are interested in selling as many roofs as possible in your area. Guess what? There will be damage to your home regardless because it's all about selling a roof. Overpromise and under-delivered. Talk with your insurance company about contractors. They know who to trust and who not to.
Do your research, look at reviews and testimonials, and use a local roofing company
Beware of Pop-Up Roofing Contractors - Sudden pop-up companies that use a PO Box from your town mean trouble. Just because they have a "local" address doesn't mean they are from the area.
Remember that the insurance claim adjuster has the final say, but the right contractor can help facilitate the process.
The Biggest Mistakes Homeowners Make When Hail or Storm Damage Occurs:
Sign a contract with anyone before speaking with the insurance company. An agreement/contract is the very last part of the entire process. A CONTRACT IS LEGALLY BINDING AND WILL COST MONEY TO GET OUT OF!
Walking into a contract is easier than you think, acknowledging with an email can even get you caught.
Panic. Out of town, companies paint visions of terrible leaks to vulnerable homeowners. Hail does damage things, but many times is not catastrophic. Get an honest opinion. The example above is more significant hail and won't cause a leak anytime soon. YOU HAVE TIME TO SORT THIS OUT!
Accepting payment from a roofing company for an insurance deductible. THIS IS INSURANCE FRAUD.
Do not let anyone go on your roof. An uninsured roofing company could mean another claim on your policy if he or she falls off.
Insurance Claim Terms to Know and Examples:
Insurance usually consists of two payments. The first payment is the ACV minus your deductible. The second is the depreciation or the remainder when the project is completed. This is important because some homeowners think the first check is the only one they are getting. So they ending up settling for a cheap roof and here is some good info on that. The real cost of a cheap roof
ACV=Actual Cash Value is the current value of the roof as of today. The roof is considered "used," and this payment is proportional to the years it was used. This would be only a partial payment of the insurance claim unless the roof was in complete disrepair. (You would have been notified before the damage that ACV is only offered) WAITING FOR STORM DAMAGE TO FILE AN INSURANCE CLAIM ON YOUR ROOF CAN LEAD TO DISAPPOINTMENT!
DEPRECIATION: This is the amount or value of the used portion of the roof. Example: The value of a 15-year-old roof is 1/2 of what it once was with a 30-year shingle. Depreciation is the other 1/2 or the value, or the portion that was used.
RCV=Replacement Cost Value. This is what insurance is allowing in total for the project when a licensed contractor is hired to do the work. ACV+DEPRECIATION =RCV
SUPPLEMENT: Additional monies to pay for the project. No one is perfect: materials were shorted, or hidden damage was found. Sometimes it is thought that cashing an insurance check is the same as a settlement check. Not the case. Supplement checks are standard practice and meant to full fill what was missed on an inspection. Supplements do require documentation.
DEDUCTIBLES: A deductible is the amount held back from the insurance company for the claim. It is the cost to the insured for filing an insurance claim that is approved. The reason for deductibles is to eliminate small claims, which helps keep premiums affordable.
Examples of typical insurance processes with a roof coverage
Example: The replacement cost of the roof today is $10,000 or RCV w/ $1000 deductible on the policy. Let's say the roof was 12 years old and was considered a 30-year shingle. 40% of it was used. The first payment or ACV would be $4,000 less the deductible making it a $3,000 payment. When the project is complete, the DEPRECIATION payment will be issued of $6,000. The value of the roof is $10,000, and insurance issued two payments equaling $9,000. The $1000 remaining is considered the deductible and your out of pocket cost for the roof regardless.
Example: ACV POLICY ONLY The replacement cost of the roof today is $10,000 or RCV w/ $1000 deductible. Let's say the roof was 30 years old and was considered a 30-year shingle. 100% of it was used, and the roof is limping along. The first payment or ACV would be issued less the deductible. This is when homeowners get frustrated because a lot of out of pocket money will be needed to make the roof new again. It's just like running a car until it dies, only with the roof over your head! Full replacement is not deserved or fair in this case.
Option 1 (HIRE A LICENSED ROOFING CONTRACTOR TO COMPLETE THE WORK) A trusted contractor was found, an agreement was entered, usually requiring a down payment. ACV can be used for this down payment. When the project is completed, an invoice will be required by the insurance company. The depreciation payment will be issued after the final invoice.
Option 2 (HIRE THE CHEAPEST GUY TO COMPLETE THE WORK) Replacement Cost Value for the roof is $10,000 with a $1000 deductible. The ACV payment is $5,000 less the deductible making it $4,000. The roofer said he could do it for $6,000. There's money coming your way with the depreciation when this is complete! NOPE! Unless fraud occurs, insurance will ask for the roofer's final invoice, which will be $6,000. Insurance will pay an additional $1,000 or the adjusted RCV to make the total with the ACV equal to $6,000. You still owe $1000 to the contractor Conclusion: A $10,000 roof was done for $6,000. There is no fun money. These guys that are usually out of business within two years, typically they are not licensed or insured, don't return phone calls after job completion.
Option 3 (DO NOTHING AND KEEP THE MONEY) You have the right, and what is owed to you. Go on vacation, buy a boat. Just don't expect to claim damage or double-dip on this claim again. A clock starts ticking on this insurance claim and varies from insurance company to company. When the claim closes, ACV or the very first payment is all that will be received.
About Rooftop Solutions
Looking for a new roof and live in or around New Richland, Albert Lea, Owatonna, or Mankato Minnesota? Maybe you just want to discuss the life left in your roof. Expect an honest and educated answer from me.
Brandon Kroeger 507-400-7663