Roof Insurance Claim: A Guide On What To Do 2020
You need a new roof… Who ya gonna call?
Well I can tell you this, you shouldn’t call the ghostbusters.
Many people think the first step is to call in a claim. Others will call their agent. What you should do is call a roofing company first for a FREE inspection.
Homeowners have so many questions about the process and how it works. Let’s break it down for you.
Have you called in a claim before?
Be certain you need to call in a claim before you actually do it. If you’ve filed claims in the past they label you as a high risk client and that’s a red flag to the company.
How long have you been with your insurance company?
If you’ve switched companies lately, you’re going to have some issues getting them to pay for something that was damaged before they took over. If you haven’t switched companies then your chances of coverage are much higher.
Worried about your rates going up?
That is a valid concern. Insurance companies can raise your rate if it is a fault claim. Meaning damage was caused by something the homeowner could have prevented. If it is a no fault claim then it is illegal to raise rates.
If others in your area are getting roofs, it’s going to impact your insurance anyways. A roof is supposed to live 20-30 yrs. If it is within that lifetime of your roofs guarantee it doesn’t matter as long as you have insurance on it. So call a local roofing company to come out.
Why does insurance replace roofs anyways?
Let’s say you have a roof leak causing little to no damage now but they don't replace it. Fast forward 3 years, the leak is bigger and there is more damage to the exterior and interior. Now there is more to worry about for you and them. If you have damage to warrant a full roof replacement they'd rather fix it now rather than wait until there is more damage.
What is a deductible?
Think of it like a copay at the doctor. You pay the deductible to the roofing contractor and insurance will pay the remaining. So let’s say your new roofing system is $10,000 and your deductible is $500. You pay $500 to the contractor and insurance pays $9,500 to the contractor.
Unfortunately, getting a roof is not free, for anyone. Don’t know what your deductible is set at? On your homeowners insurance document there is a declaration page with your deductible information.
What’s an insurance adjuster and what do they do?
The insurance adjuster is the person that actually comes out and gets on your roof. They get measurements, assess the damage and collect information. They take their findings back to the office and give it to the claims handler who takes it from there.
They’re supposed to call and set up an appointment while you are home. Some will tell you you don’t have to be there BUT YOU WANT TO BE THERE. If you can’t be there, have a roofing contractor you know, trust and who specializes with insurance claims and processes to be there. Your contractor will work directly with the insurance adjuster and will relay all information to you. Here’s a little secret…
The insurance and roofing companies work for you. You tell them when you can meet.
Insurance has already given me a check, now what?
Quick answer- always deposit the insurance check and then give a personal check to the roofing contractor.
Who is the check made out to?
The check will need to be endorsed by all names listed before it can be deposited. Is your mortgage company on it? This is normal. They own your home and want to be in the know of what is happening. They want to make sure what needs to be done to the home is actually being done.
Insurance pays 2 checks.
The 1st check is to hire a contractor and order supplies and materials. Depending on the company, they will want that upfront.
The 2nd check is for when the project is complete.
The system is designed so homeowners don’t keep money from the insurance company rather than paying it out for the job. Going with a cheaper roofing contractor doesn’t mean you get to keep any money. The contractor will invoice the insurance company for the remaining half of the job.
Do you need to get bids and estimates?
If your agent told you to, he’s an old school guy. Bids don’t matter with insurance anymore. The insurance company determines the final estimate. Homeowners insurance companies all operate in the same manner. They hire their own field adjuster to assess your roof and give the information and estimate back to the office. It doesn’t matter how many roofing estimates you give them. Whichever bid you go with is what they will pay for. No matter what, your deductible is the same. So why have your insurance pay less for a cheap roof but you still pay the same deductible?
If insurance is not involved and it is a cash job, then yes get bids. Interview three roofing companies and ask the right questions. Don’t bid shop, roofer shop.