Q: What is depreciation?

A: Depreciation is the amount of money that is held back by the insurance company. This is per item and not on the total claim amount. The depreciation is based on how much life expectancy is left in the damaged item. If something is worth $100 brand new and there is 10% of its life expectancy left, the insurance carrier would pay you 10% of the new price ($10) and hold back 90% ($90). Depending on the policy, the depreciation can be recovered once the work is completed and documentation is sent in.

Q: Do I need to get multiple quotes for insurance work?

A: No, you are not required to submit multiple bids or go with the lowest. All roofing contractors will perform the work for the agreed-upon amount set by in the Statement of Loss. Insurance companies and contractors use software such as Xactimate, which determines the price based on the material and labor rate for the zip code. If you get a quote for less than what is determined by that software, the insurance will pay you less when depreciation is released. They will only pay whatever is invoiced by the contactor.

Q: Why won’t roofing contractors give me a quote to replace my roof if it’s an insurance claim?

A: Because the only one who wins if we all bid lower than what the insurance company has deemed a responsible amount is the insurance company. So instead of asking for a bid, you should ask: “What upgrades and additional items is your company willing to include for the price?” Examples would be a Class 4 shingle upgrade, ice and water shield, and extended warranties.

Q: How do roof insurance claims work?

A: There are four main parts to a roof insurance claim, which are 1) research and document, 2) call a roofing contractor, 3) call insurance and file a roofing claim, and 4) have the roof replaced. 

Q: How long do I have to file an insurance claim for hail damage?

A: Most policies that were written or renewed after 2018 state that you have one year, due to when hail damage becomes less obvious and when potential leaks are more likely.

Q: Is it a good idea to give a roofing contractor your insurance paperwork and statement of loss?

A: Never give anything to someone you don’t trust, but it’s not a private document and only helps the contractor understand the claims better. Typically, we find that we can help you understand the document better and inform you what is covered and what is not.

Q: What is a Statement Of Loss?

A: This is the estimate of what the insurance company has estimated the repairs to cost to bring your property back to pre-loss conditions.

Q: What is an Insurance Supplement?

A: Supplements are additional items that are required to bring your property back to pre-loss condition. These are either items missed by the insurance adjuster or code-related items required by the city. These are submitted by your contract for approval.

Q: Will my out of pocket cost ever change or be higher than my deductible?

A: As long as you have the proper coverages in place, no. If you did not have code upgrade coverage included in your policy this would be your responsibility. Some policies are ACV (Actual Cash Value) only meaning there will be no depreciation released. If we get all the documents ahead of time, we can help you understand your out of pocket cost and ensure it does not change.

Q: What type of roof lasts the longest?

A: A roof that is properly cared for, inspected each year, and repaired as needed can see a lifespan of between 15 and 100+ years, depending on materials. The length of how long a roof will lasts depends on roofing material, environment, exposure to elements, and care. 

Q: Should I install a Class 4 Impact Resistant (IR) shingle on my roof?

A: Most insurance carriers offer a yearly premium discount for this product. The RIO (return on investment) is usually less than three years. Check with your insurance agent if there is a financial benefit to installing them. 

Q: Are there any hail resistant shingles?

A: F-Wave is the only roof covering that offers a hail warranty. They promote that it’s the last roof you’ll ever install.

Q: How old can a roof be for insurance?

A: The age and condition of the roof should have not bearing on if Insurance will cover it. Insurance will cover any roof where there is visible storm damage. Sometimes when a roof is in extremely poor condition it is hard to distinguish between storm damage and general wear and tear. This is why we recommend having a professional on-site to review the damage with the adjuster. 

Q: Why you do not need a bid for insurance work?

A: Price should not be a concern when replacing your roof through an insurance claim if you have the right coverages in place. The insurance company owes for what is damaged and to bring your property back to pre-loss condition. If you go get multiple bids and go with the lowest bidder, the only one who wins or saves is the insurance company.

It is not true that you must get multiple bids; you have the right to work with whatever roofing contractor you want. Most importantly: you want to make sure the scope of work is comprehensive, complete and you trust the contract. The price should always be determined by the scope of work, which is entered into Xactimate. Xactimate a software used by both contractors and insurance company to estimate the replacement cost by using the geographical location to determine that market’s local supply and labor rate.

Still have questions? Our team is happy to answer any questions you may have. Reach out to us at 682-583-6593 / [email protected]