4 Tips for Reading + Deciphering a Roof Insurance Claim

A woman holds a pen over some insurance claim forms

There’s no doubt about it — insurance claim documents can be confusing! It’s important to understand the key elements of an insurance claim because when filled out incorrectly you could miss getting coverage or miss the mark on being approved for coverage altogether. Keep reading to learn about the key things to know when it comes to roof insurance claims.

Tip #1: Understanding Xactimate Software

This is a software application used by most insurance companies to build insurance claims and determine just how much they’ll need to pay out to the person filling out the form. Xactimate has each party’s best interest at heart and conducts regular research on market pricing of labor and materials to ensure fairness for everyone involved. Because of the Xactimate software, most insurance claim paperwork will include the below information and sections…

Tip #2: Know Your Insurance Claim Vocabulary

As you read your roof insurance claim, reference this list for help understanding which party owes which amount, and to whom. These basic terms will help to clear up much of the initial confusion people face when reading insurance documents for the first time.

Line Item Total: The sum of all unit prices for the damage before tax, and before general contractor overhead is incorporated plus the taxes of the material costs.

General Contractor Overhead or General Contractor Profit: These are the costs of the contractor’s business operations. This typically includes the costs associated with coordinating the roofing project, paying the workers, and general business costs.

Replacement Cost Value (RCV): The grand total cost, including all line items and general contractor overhead. If there are multiple summaries you’ll need to add each RCV together for the total cost of repairs (this would be in the case of damage to multiple buildings on your property).

Total Amount of Claim if Incurred: The amount in dollars that the insurance company will pay out to cover your roof damage. This is equal to your RCV minus your plan’s deductible.

Tip #3: Break down the Elements of a Claim Document

You may notice your insurance claim document is divided up into certain sections. Let’s walk through step by step here what the purpose of each section is, and why it’s relevant to you.

Claim Summary: This is usually what each insurance claim begins with– a section summing up damages, the causes, and the estimated cost of repairs. This will look like a title on the page and will say something like this: “Summary for Coverage A – Dwelling – Fire.” If other buildings on your property are affected by the damage they will be called “Coverage B – Storage Shed – Fire.”

Line Items: This is a list towards the back of your insurance claim accounting for all jobs and expenses your insurance company covered.

Supplemental items: With projects as complicated as roof repairs and replacement, unexpected extra work is sometimes needed to get your home back into tip-top shape. For example, a partial roof replacement may be needed due to hail damage, but if the workers uncover structural rot, a full roof replacement may be deemed necessary. These extra jobs are listed in the ‘Supplemental items’ section of your claim. 

Tip #4: Talk with a Trusted Contractor

At CoMitted 365, it is important to use that we help our customers at every step of the way—and the insurance claim paperwork is no exception. If you feel as if you’re not getting far working through the paperwork on your own, you can always turn to a trustworthy contractor for help. As contractors, we have years of experience in the field and we understand just how confusing this process can be!

For more information about insurance claims processes and paperwork, or to learn more about the roof repair and restoration services we offer, give CoMitted 365 a call.