Roof Deductible, Depreciation & Insurance Claims
“Read every word of this report to understand your roof deductible, depreciation and the insurance claims process…”
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 for a quick answer.
Roof Rescue Contracting will work with you to help you get your home fixed. All you are responsible to pay is your deductible - that’s all, nothing else. If you have a large deductible, we will work with you to get your roof replaced.
3 Fast Facts About Your Claim
- 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 inadvertantly miss something or overlook an important aspect of your claim.
- Your insurance cannot be cancelled for weather related claims.
You may be asked to get three estimates. This isn’t entirely for your benefit. 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.
Can I Put Money In My Pocket?
Getting a lower bid doesn’t legally put money in your pocket because the insurance company is holding back some of the claim money until the work is completed and a final invoice is presented. Submitting a false final invoice is 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 less 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.
Your First Check
The first check, minus your deductible, 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.
What Is Depreciation?
Your insurance company may also hold back depreciation. Depreciation is the amount of your settlement that is not paid until and unless you need it to complete the repairs to your home if you have a replacement cost value policy. Most policies cover replacement cost. If you are unsure, ask your roofing contarctor or insurance adjuster.
The depreciation is normally cut as a second check after you or your contractor submit a signed estimate or 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, the insurance company will keep any depreciation not spent on repairs.
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.
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.
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.
To get your free estimate, fill out the form below or pick up the phone and dial (817) 781-9982 right now.