Insurance
Deductible, Depreciation, ACV “actual cash value” & Insurance Claims in general
Understand your storm restoration claim and how to get your entire property repaired not just a roof.
CAN I KEEP THE MONEY?
Getting a cheaper estimate won’t put money in your pocket because the insurance company won’t release all of your repair funds until the job is done. The insurance company is ultimately going to subtract the amount of your deductible from whatever invoices they receive for the repairs to your home. “Submitting a falsely inflated final invoice is insurance fraud and can land you in trouble.”
When your insurance company agrees to pay your claim, they will normally cut a first, partial-payment check minus your deductible. Sometimes this check is cut while your adjuster is at your home. Other times, it will be mailed to you within a week to ten days – after they complete their required paperwork.
Insurance providers initially only pay the minimum possible amount that the repairs could potentially be. Because,1. they never overpay, 2. they always subtract the deductible 3. they always withhold some of the funds until all of the work is complete, 4. Many items are not paid for at all until they are incurred and billed for, like permit fees, new code requirements cost, and supplements. Once you understand how this works you will realize that trying to find the cheaper estimate only results in you getting a cheaper quality repair.
Beware of insurance company’s “preferred contractors”. Insurance company preferred contractors generally agree to do repairs for that minimum possible amount. These preferred contractor notoriously due not replace used, old, damaged flashing components. Additionally preferred contractors overlook issues like soft decking that might need replaced or other damages like siding window or painting that were not accounted for by the adjuster. This saves the insurance provider hundreds of thousands of dollars at property owners expense. This also creates a situation where the preferred contractor puts the interest of their ongoing relationship with an insurance provider ahead of their relationship with you the property owner. Buyer Beware.
3 Quick Facts About Your Claim
The paperwork you receive from your insurance company only represents their estimate for repairs – it is not a final settlement.
The Colorado Department of Insurance (http://www.dora.state.co.us/Insurance/consumer/homemain.htm) recommends that your roofing contractor be at your home when your insurance adjuster arrives to inspect your property for damage. Adjusters are busy and may inadvertently miss something or overlook an important aspect of your claim when they assess the damage.
Your insurance cannot be canceled for weather related claims like hail or wind damage.
If you choose a restoration company that charges less than “fair market price”, you may get inferior materials, less than quality labor or lack of service after the sale.
The difference between “fair market price” and your lowest bid cannot be applied toward your deductible. Your insurance company keeps the savings.
MY FIRST CLAIM CHECK
The first check, minus your deductible, is usually only enough for your contractor to buy materials and get your work started. Often, the first check will be co-endorsed to your mortgage company.
If your check is co-endorsed, you’ll need to get a signature from your mortgage company and deposit the check in your bank before starting work. If your check is not co-endorsed to your mortgage company, simply deposit in your local bank. Your bank may or may not have a policy of holding insurance funds for 7-10 business days
HOW DOES MY DEPRECIATION WORK?
Your insurance company may also hold back depreciation. Depreciation is the amount of your settlement that is not paid unless and/or until you need it to finish fixing your home.
Most policies cover full replacement cost minus your deductible. If you’re not sure, ask your roofing contractor or insurance adjuster.
The depreciation check is usually only cut after you or your contractor submit a final invoice.
If you do not use all of your depreciation to get your home fixed, your insurance company will subtract your deductible from the final lower-priced invoice rather than the total claim originally allowed.
“In other words, your insurance company will keep any depreciation monies you didn’t spend while getting your home fixed.”
After the final invoice is submitted, your insurance company, and sometimes your mortgage company, may want to do a final inspection to be sure that all of the work billed has been completed in a workmanship like manner with quality materials before releasing the second depreciation check.
3 Quick Depreciation Tips
Depreciation is the amount of money withheld from you until your work is completed. By withholding depreciation, your insurance company ensures that they only pay the balance after you pay your deductible.
Your insurance company will match, not exceed, your roofing contractor’s “fair market value” bid, less your deductible.
If you do not spend all of the money allowed, your insurance company keeps the difference and pays the balance.
WHAT ABOUT SUPPLEMENTAL CLAIMS?
In a storm environment, with rising material and labor costs, it may also be necessary to file for a supplemental claim to cover rising costs. When a supplemental is paid, your insurance company will agree to issue a third check beyond the original claim to help your contractor cover these rising costs. This check will be made out to the homeowner and may need the signature of your mortgage company too.
MY DEDUCTIBLE
Your deductible is the portion of your claim that is not covered by your insurance company. In some cases, the deductible for your roof may be different than the deductible for the rest of your property. Check your policy or call your agent to find out. Diamond Exteriors claim experts will work with you to help you get your property fixed. All you are responsible to pay is your deductible – that’s all, nothing else. If you have a large deductible, we’ll work with you to get your repairs completed. Diamond Exteriors will walk you through the claims process step-by-step and handle all of the administrative work to make sure your property gets the attention it needs.
Why is Diamond Exteriors Different than other Colorado Exteriors Remodeling Companies?
Diamond Exteriors is a trusted name in the Colorado restoration industry because of our experience in dealing with insurance claims to make sure you are treated fairly and your home looks as good as new. We know the storm restoration insurance claim process in and out. As a member of the Colorado Roofing and Restoration Council and an Owens Corning Preferred Contractor, Diamond Exteriors has been around over 20 years taking care of storm damage repairs for thousands of Coloradans . Finding a reputable exterior restoration company to handle your next hail damage claim can be a daunting task. Our goal is to make the process as easy as possible for you. We encourage you to take a look at all of our 5 star reviews and testimonials from our happy customers to see what type of customer experience we provide. Diamond Exteriors is equipped to handle any Colorado storm damage restoration project from Boulder to Castle Rock and the Greater Denver Metro area. When you experience a storm and or hail damage, give us a call for a free inspection and estimate for your roof system. Filing an insurance claim is never fun, but having a trusted and reliable team like Diamond Exteriors on your side, can make the process a whole lot easier for you and more equitable for your property.
25+ Years
That's a lot of experience in the professional roofing industry. Rest assured you're getting the highest quality and most professional work.
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People and prices. We help you navigate your insurance claim, save you money, and restore your property.
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We only use high-quality, ethically sourced materials for our projects. This means your house is in good hands from the free inspection to the completion of your project.
Testimonials
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Vic H.
“Please Like Diamond Exteriors with me !!!! Diamond Exteriors focuses on getting the job done right. If getting the job done right is more important than getting it done right now call Diamond Exteriors.”
Jennifer S.
Doug is the man. He will take care of you and follow through to the end.They care about their customers. This is a five-star company. Only call them if you need the best.
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