Things To Know
A Homeowner might go their entire life without having to ever file a claim. However, odds are, if you are reading this then you aren’t one of those rare individuals. With such little experience on filing a homeowners insurance claim, a homeowner is left with very little information on how to do so. Without knowing the policy that was purchased or the questions to ask, it leaves the door open for misguided information that benefits the insurance company (less payout) or for a contractor (less quality work). We can help guide you through this process so you can make educated decisions regarding your investment!
Start by knowing what kind of policy you have! This determines what and how the insurance pays. We can not interpret your policy and/or law.
ACV = Actual Cash Value
This means the estimate amount to replace your current roof MINUS age depreciation! If your roof is 10, 20, 30 years old you will be deducted a cash value for those years!
Then MINUS the deductible agreement you signed with the insurance company.
RCV = Replacement Cost Value
This means the insurance estimate amount to replace your current roof INCLUDING your deductible and ACV amount.
See the big difference between the two policies? Knowing the type of policy you carry could drastically alter an amount paid by insurance in the event of making a claim!
Claim has been Filed:
Now that you have filed a claim with the insurance company, an adjuster will come to the property to evaluate the damage. WE ADVISE YOUR CONTRACTOR BE THERE! You want someone on your side to walk with the adjuster throughout the inspection to make sure nothing is missed. (Can you identify hail damage?) The adjuster will then take their findings and estimate the cost to repair, then subtract your deductible, subtract any depreciation and will present you with a check for the remaining amount. This is known as
the ACV amount.
Example
Estimate for Repairs $10,000
Deductible Amount – $2,000
Depreciation Amount – $4,000
Total Check Amount = $4,000
With an ACV policy, insurance has written you a check for $4,000 + $2,000 (deductible) = $6,000 allowance to repair a $10,000 roof. Where does the remaining $4,000 come from? The homeowner!
With an RCV policy, insurance has written you a check for $4,000 + $2,000 (deductible) = $6,000 allowance to repair a $10,000 roof. Invoices and canceled checks will be submitted by the contractor after job completion and the $4,000 depreciation will be released. The homeowner is ONLY responsible for their deductible, nothing more!
Determining If You Got Enough For your Claim:
Remember when we said to have your contractor with you at your adjuster appointment? Human error can occur or simply a judgement call by the adjuster can result in damages not being paid for. When the adjuster finishes their review, they simply plug it into a software that determines the estimate totals. Good news, we use the exact same software! We can verify that all known damage has been properly documented so that your property can be restored to a pre-storm condition!
Common Misconceptions:
– Get 3 different estimates from different contractors.
When shopping around for a cheaper price with different contractors this does not save the homeowner money, it saves the insurance company! When working an insurance claim, you shop for a contractor, not a price. Either way a customer will be out of pocket their deductible, why not get the most out of it and not have to worry about a lesser quality roof or shoddy workmanship that most cheaper companies provide.
ASK your insurance company if you get to keep the difference if you find a contractor to do the repairs cheaper then what the insurance estimated! Their answer will always be NO!
-New Free Roof.
A homeowner signed a contract with their insurance company that they will pay their deductible if a claim is filed. There is NO LEGAL WAY TO COVER A DEDUCTIBLE! Contractors who advertise covering a deductible or a no cost roof is knowingly committing insurance fraud. That cost has to be covered somehow, so again we encourage you to as, do you want to do business with someone that is knowingly committing fraud and being unethical?
-New as of September, 1st 2019
Texas law requires a person insured under a property insurance policy to pay any deductible applicable to a claim made under the policy. It is a violation of this Texas law for a person or business paid wholly or partly from proceeds of a property insurance claim to knowingly allow the insured person to fail to pay. Or assist the insured person’s failure to pay, the applicable insurance deductible. See SECTION 2. Business & Commerce Code, is amended to read as follows: Section 27.02. “Goods or Services Paid for by Insurance Proceeds: Payment of Deductible Required”
Whether you choose Peaked Roofing or not…BE INFORMED!
Below is a snippet of an actual homeowners policy for an insurance company. While every policy may vary in language, they each will have some verbiage similar to this.
2. Concealment or Fraud
This policy is void as to you and any other insured, if you or any other insured under this policy has intentionally concealed or misrepresented any material fact or circumstance, made false statements, or committed fraud related to this insurance, whether before or after a loss.
5. Cancellation
(2) if this policy has been in effect 90 days or more, we may not cancel this policy unless:
(c) you submit a fraudulent claim.
Peaked Roofing Contracting and Construction will not compromise our beliefs, ethics or our business! Take the time to choose a contractor who gives you the ability to sleep easy at night knowing the job was done the right way. A contractor willing to educate its customers and give them a chance to make an informed decision is in your best interest.
Whether you choose Peaked Roofing Contracting and Construction or not, we want you to be informed.
We can only offer our opinion and give general knowledge and none of the information above should be substituted for legal advice. If you have questions it is advised you seek help from an attorney.
