Being a homeowner can be so rewarding and joyous. Yet, when disaster strikes and your roof is damaged, it can seem like a nightmare.
Your home’s roof is one of the most important “systems” that it has, as it protects your loved ones and everything else that you have inside. At the same time, it’s also very susceptible to damage, whether that come in the form of falling debris, severe storms or even normal wear and tear.
Damaged roofs can be costly to replace or repair, but many home insurance policies will cover damage to roofs.
The process can be a little complex and comprehensive, and result in homeowners feeling overwhelmed. Below is a description of what you should expect during the roof insurance claim process.
Preparing for the Claim Process
Before you even file a claim with your homeowners insurance, there are some important steps you must take to prepare.
First and foremost, you must assess the damage to your roof and decide whether it’s worth filing a claim at all. A broken or missing shingle or two likely will be cheaper than your policy’s deductible, for instance.
As you assess the damage, it’s important to provide documented evidence for your insurer. Take pictures of the damage that you can see, and write down descriptions of the damage.
If the damage is catastrophic, you should immediately seek to fix the problem. Make sure to contact a roofing contract that has experience with insurance claims, as they can help you navigate the insurance process.
Understanding Your Insurance Policy
For your own peace of mind — and potential leverage — it’s important to understand your insurance policy as it relates to roof damage. It’s key to know, for example, what methodology your insurer uses to determine reimbursement.
In addition, review the details of your policy to determine what type of damage your policy covers, what the limits of coverage are, and what your deductible is.
There are two main types of insurance policies, and the approach they take to reimbursement
A Replacement Cost Value policy, or RCV, will determine how much they pay to replace or repair your roof without factoring in depreciation.
An Actual Cash Value policy, or ACV, by contrast, will only pay the depreciated cost to replace or repair your roof.
Because of this, a RCV policy will always pay out more than an ACV policy.
Filing the Roof Insurance Claim
Once you’ve assessed and documented all the damage, and reviewed your policy, it’s time to contact your insurer. This can be done over the phone or even online with some insurance companies today.
In this stage, you’ll describe in detail the damage and provide any necessary evidence and documentation to back up your claim. The insurer will then schedule an inspection with an insurance adjuster, who will visit your property to assess the damage in-person.
The adjuster will then send a report back to the insurer, which will include recommendations for repairs and/or replacement, as well as estimated cost to do the work.
Understanding Recoverable Depreciation
Recoverable depreciation is a term that refers to the gap that exists between the replacement cost of a project and the Actual Cash Value, as mentioned above. If the replacement cost of a project is $10,000, for instance, and the ACV is $4,000, the recoverable depreciation is $6,000
This doesn’t mean that you will be responsible for covering the cost of the recoverable depreciation. Instead, it just means that the recoverable depreciation amount is held until work is complete.
Many insurance companies will give homeowners the ACV right away, minus their deductible, so that the roof project can get underway. They then hold the remaining funds — the recoverable depreciation — until proof is provided to them that the work has been completed by a contractor.
For roof projects, insurance companies will calculate depreciation based on the age and condition of the roof, as well as the most up-to-date roof products being used.
The most popular way to calculate recoverable depreciation for roofs is to estimate the performance timeline of the product and then reduce its cash value by a fraction for each year until it reaches zero.
For example, if a roof replacement costs $20,000 and has a lifespan of 20 years, then its value would be depreciated by one-20th of the original purchase value every year, which equates to $1,000 per year.
Navigating the Claim Approval Process
Almost all claim approval processes work the same.
First, you will file your claim and submit any documentation to the insurance company.
Then, an adjuster will visit your home to conduct an inspection. In many cases, this can be done within a few days, at most. After, they will submit a report to the insurer with recommendations and a cost estimate.
Your insurance company will then provide you with a report that sums up the adjuster’s findings as well as their decision about what they will pay out in the claim. This typically happens within 24 to 48 hours of them receiving the report.
Finally, you will have the option to accept, reject or appeal the claim.
The first two options are relatively straightforward. If you accept the claim, the payout process will be initiated. If you reject it, the claim will be closed, and no payout will occur.
If you appeal the claim decision, though, it could be a lengthy process. To improve your chances at getting a fair settlement, document all the damage as it happened. Refer to your policy when arguing you should get more. And always work with a licensed roofing contractor that has experience working with insurance claims.
By having this contractor on your side, you can increase your chances of success.
Receiving Compensation and Completing Repairs
Once you accept the claim, you can expect to receive your payout relatively quickly. Depending on your insurance company, this payment may come to you directly, or it may go directly to the roofing contractor you have hired to complete the job.
Again, the best way to streamline the roof repair and/or replacement process — and ensure that you’re getting quality work — is to hire a local roofing contractor that you can trust and that has worked on insurance claims before.
Having this experience on your side will help ease your mind, and will also ensure that you’re doing everything necessary to receive the insurance claim payout you deserve. This includes filing the correct documentation to have the recoverable depreciation paid, and completing the work up to par.
You Can Trust The Roof Resource
The Roof Resource is your local roofing company that has years of experience with roof replacement projects. We have worked on numerous insurance claims in the past, helping our customers get the roof replacement that they need in a timely and orderly fashion.
Our experts take a unique approach to roof replacement. Our fully-virtual, cost-effective roof replacement model enables us to provide services that are roughly 50% less than traditional methods.
We only use high-quality asphalt shingles in all our roof replacement projects, which ensures you get a best-in-class roof to protect your loved ones and everything inside your home.
For more information on The Roof Resource, or to receive a free estimate, contact us today.