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Expert Help: Roof Deductible, Depreciation & Insurance Claims
“Read every word of this report to understand your roofing insurance claim and how to use your depreciation money…”
3 Quick Facts About Roof Claims
- The paperwork you receive from your insurance company only represents an estimate for roof repairs - it is not a final settlement.
- The Texas Department of Insurance recommends that your roofing contractor be at your home when your insurance adjuster arrives to inspect your property for damage. Adjusters are busy and may inadvertently miss something or overlook an important aspect of your claim.
- Your insurance company cannot cancel you or raise your rates for weather related claims. However, if you’re involved in a catastrophe, your insurance company may raise rates on everyone impacted in order to stay in business.
If you choose a roofing company that charges less than “fair market price”, you may get inferior materials, less than quality labor or lack of service after the sale.
The difference between “fair market price” and your lowest bid cannot be applied toward your deductible. Your insurance company keeps the savings.
The Insurance Claim Check
The first check, minus your deductible and depreciation, is usually only enough for your contractor to buy materials and get your work started. Often, the first check will be co-endorsed to your mortgage company.
If your check is co-endorsed, you’ll need to get a signature from your mortgage company and deposit the check in your bank before starting work. If your check is not co-endorsed to your mortgage company, simply deposit in your local bank. Your bank may or may not have a policy of holding insurance funds for 7-10 business days.
How Does My Depreciation Work?
Your insurance company may also hold back depreciation. Depreciation is the amount of your settlement that is not paid unless and/or until you need it to finish fixing your home.
Most policies cover full replacement cost minus your deductible. If you’re not sure, ask your roofing contractor or insurance adjuster.
The depreciation check is usually only cut after you or your contractor submit a final invoice.
If you do not use all of your depreciation to get your home fixed, your insurance company will subtract your deductible from the final lower-priced invoice rather than the total claim originally allowed.
“In other words, your insurance company will keep any depreciation monies you didn’t spend while getting your home fixed.”
After the final invoice is submitted, your insurance company, and sometimes your mortgage company, may want to do a final inspection to be sure that all of the work billed has been completed in a workmanship like manner with quality materials before releasing the second depreciation check.
3 Quick Depreciation Tips
- Depreciation is the amount of money withheld from you until your work is completed. By withholding depreciation, your insurance company ensures that they only pay the balance after you pay your deductible.
- Your insurance company will match, not exceed, your roofing contractor’s “fair market value” bid, less your deductible.
- If you do not spend all of the money allowed, your insurance company keeps the difference and pays the balance.
What About Supplemental Claims?
In a storm environment, with rising material and labor costs, it may also be necessary to file for a supplemental claim to cover rising costs. When a supplemental is paid, your insurance company will agree to issue a third check beyond the original claim to help your contractor cover these rising costs. This check will be made out to the homeowner and may need the signature of your mortgage company too.
My Roof Deductible
Your roof deductible is the portion of your claim that is not covered by your insurance company. In some cases, the deductible for your roof may be different than the deductible for the rest of your home. Check your policy or call your agent to find out.
While you’re responsible for your deductible, Roof Rescue Contracting will work with you to help you take care of your home. Even if you have a large deductible, we can help you get your roof replaced.
Roof Rescue Contracting will walk you through the claims process step-by-step and handle all of the hard work to make sure your home gets the attention it needs.
What If I Get A Cheaper Estimate?
Getting a cheaper roofing estimate won’t put money in your pocket because the insurance company won’t release all of your money until the job is done… and they get a final invoice from your roofing company.
“Submitting a false final invoice is roofing insurance fraud and can land you in trouble.”
When your insurance company agrees to pay your claim, they will normally cut a first, partial-payment check minus your deductible. Sometimes this check is cut while your adjuster is at your home. Other times, it will be mailed to you within a week to ten days - after they complete their required paperwork.
“You may be asked to get three estimates. Finding the lowest price only gets you a cheaper job. Your insurance company keeps the savings.”
If you’re anywhere within 50 miles of Fort Worth Texas, pick up the phone or fill out the form below to get expert roofing advice.
Call Fireman Roofing at (817) 213-6332 or toll-free (800) 417-7487 right now to get expert roofing advice.