
WORKING WITH YOUR INSURANCE COMPANY
Understanding Insurance Terms and your Insurance Estimate for Roofing Repairs.
If you’ve experienced damage to your roof, understanding your insurance terms and the accompanying estimate can feel overwhelming. As a homeowner, navigating insurance claims for roofing repairs doesn’t have to be complicated, but it’s important to know what you’re looking at when you receive your insurance estimate. This post will help you understand key insurance terms and how to read an insurance estimate, ensuring you feel confident when dealing with your roofing repair.
Basic Insurance Terms You Should Know
Before diving into your insurance estimate, it’s helpful to familiarize yourself with some common insurance terms. Here are a few key ones you may encounter during the claims process:
Coverage Limits: The maximum amount your policy will pay out for a claim.
Line Items: Each line item represents a specific repair or material cost. Check for accuracy in the quantities and descriptions of the materials listed. If something doesn’t seem right (e.g., the wrong roofing material or an overestimated number of squares), bring it up with your adjuster.
Replacement Cost Value (RCV): The amount it would cost to replace the damaged property with a similar one at current market prices. If you have an insurance policy that allows for reimbursement of the RCV, the Replacement Cost Value payment is typically issue to the customer after they provide verification the work was complete. This is how the RCV amount will appear on your estimate:
Depreciation: The loss in value from all causes, including age, wear and tear. This amount will be deducted from the Replacement Cost Value (RCV). If you have a RCV policy, then the deducted depreciation dollar amount is recoverable. However, if you have an Actual Cash Value policy (ACV is explained in detail below), then the deducted depreciation dollar amount is non-recoverable. This is how the Depreciation amount will appear on your estimate:
Actual Cash Value (ACV): The Replacement Cost Value (RCV) minus depreciation (i.e., the value of the roof taking wear and tear into account). In short, RCV - Depreciation = ACV. This is how the Actual Cash Value amount will appear on your estimate:
Deductible: The dollar amount you’re responsible for paying out-of-pocket. Typically, your deductible is subtracted from payments made by your insurance carrier and it is collected by the repair contractor. IMPORTANT NOTE: It is ILLEGAL for a repair contractor to offer and/or waive your deductible. This is how your Deductible will appear on your estimate:
Understanding these terms can help you communicate more effectively with both your insurance adjuster and roofing contractor.
What is an Insurance Estimate?
An insurance estimate is a document prepared by a claims adjuster, outlining the expected cost to repair or replace the damaged roof. This estimate is based on your coverage and the findings from the adjuster's assessment of your roof’s condition.
Insurance estimates typically include:
Materials Cost: The cost of the roofing materials needed for repairs or replacement.
Labor Cost: The cost associated with the work required to complete the repairs.
Depreciation: In the case of ACV policies, the adjustment made to reflect the roof’s wear and tear.
The estimate serves as the foundation for the claim payout, which will determine how much your insurance will reimburse you after you pay your deductible.
Common Pitfalls to Avoid
It’s easy to make mistakes when interpreting an insurance estimate, especially if you’re unfamiliar with roofing terms. Here are a few common pitfalls to watch out for:
Underestimating the Damage: Sometimes, an insurance adjuster might miss hidden damage that only becomes apparent once repairs begin. Always consult with your roofing contractor to ensure all damage is accounted for.
Not Understanding the Deductible: Your deductible is the amount you’re responsible for before your insurance pays out. Make sure you know whether the estimate reflects the amount you need to pay first.
Assuming the Estimate Covers Everything: Be sure that the estimate includes all necessary repairs, including removal of old materials, disposal, and any other essential work.
How STR8 UP Roofing & Construction will work with your Insurance Adjuster
Roofers play an important role in helping ensure your insurance estimate is accurate. A professional roofer can:
Provide an accurate assessment of the roofing repairs required.
Meet with the adjuster to discuss the damage.
Help identify any overlooked damage that may need to be included in the estimate.
By working together, the roofer and adjuster can ensure that the final estimate is comprehensive and that your repairs are fully covered.
Conclusion
Understanding insurance terms and reading your insurance estimate doesn’t have to be a daunting task. Armed with the right knowledge, you can confidently navigate the claims process and ensure that your roofing repair is covered appropriately. Don’t hesitate to ask questions, consult with your roofer, and work closely with your insurance adjuster to make sure your roof gets the care it needs.
By taking the time to understand your insurance estimate, you’ll not only be well-informed but also be able to make sure that all the necessary repairs are accounted for and properly covered. If you need help interpreting your estimate or have any questions about your roofing repair, reach out to a trusted roofing contractor who can guide you through the proces