An Easy to Read Guide to Roof Insurance Claims: Who Pays for What, When & How?
Updated: Mar 22
If you've checked your local hail roof damage map and suspect your roof has hail, wind or other storm damage— you'll want to make 2 important calls. First, call a local roofing contractor for a roof inspection. They can determine if you have qualified damage above your deductible. If you do have damage, then call your homeowners insurance company to file a claim and get an adjuster meeting. At this point you'll likely still have question about the process. "Who pays for what?" and "Can I keep the payment and do the work myself?" are common questions.
The insurance claims process can be confusing to say the least, with ACV (actual cash value) and RCV (replacement cost value) it can get a little muddy— Let's clear the waters.
Understanding the Lingo
ACV (Actual Cash Value) is the industry standard of valuation. ACV is determined by subtracting the depreciation from the replacement cost.
RCV (Replacement Cost Value)
Depreciation is a value deduction based on the age of the property or item such as a roof, siding, or gutters.
Deductible is the amount of out of pocket cost you will have to contribute towards the roof repair or replacement.
Recoverable Depreciation is any amount above the ACV that is released to the homeowner.
A hailstorm hits your roof that is 10 years old and has a lifespan of 20 years. The storm causes $10,000 in damages. The insurance company will deduct $500/year ($5,000) in depreciation. So the insurance company is only required to pay $5,000 for an insured roof that only has half of its original value left.
However, if your your homeowners policy allows you to recover the depreciation VIA Recoverable Depreciation the insurer is required to pay the additional $5,000 once the work is verified as completed— The only way to capture recoverable depreciation is to complete the work and have the contractor send the invoices.
A roof insurance claim that allows recoverable depreciation looks like this:
An initial payment is sent to the policy holder for the actual cash value, minus the deductible.
The policy holder uses the payment to commence the repairs and the contractor's invoice is sent to the insurance company to verify the work.
A depreciation check is sent once the insurance company verifies the work is completed. This keeps policy holders from pocketing the funds and not getting the work done. This is a tempting route for many homeowners, but it will cost in the long-run— as all future claims will be denied.
Call a local roofing contractor with a good reputation and a physical address in your area. Look out for fly-by-night roofers that come into the area after a storm. If their work is shoddy- you will likely never see them again.
The contractor will determine if you have damage that exceeds your deductible. If qualifying damage is found, the contractor will advise you to call your insurance company to schedule an adjuster meeting.
Schedule time for the insurance adjuster to meet with you and your roofing contractor. At this time the roofing company and the adjuster will meet at the property to formally inspect the insured property.
Authorize the roofing contractor to replace the roof. After your insurance adjuster and the contractor determine the RCV. Discuss time frames, specific expectations and payment terms, and then authorize the work.
Select your shingles and schedule the work to be done. The completion time for roof replacements can vary slightly based on weather, home size, and the roof slope steepness. Your roofing contractor and project manager will keep you informed along the way.
Send the adjuster your certificate of completion after the work is complete. The roofing contractor will provide a certificate of completion or send to your insurance company for you. Once they receive the certificate they will issue the final payment. Your roofing contractor will assist you with this.
If you have predetermined your home or business has hail or storm damage, Murray Roofing will provide a free roof inspection. Murray will also assist you with your insurance paperwork. We will guide you through the entire insurance claims process. Murray Roofing has you covered...
Need a Roof Inspection?
Call a local roofing company with over a decade of experience as one of the areas quickest certified roof inspectors in the region.
Murray Roofing, LLC
1631 Cushman Dr. Suite 2
Lincoln, NE 68512