It’s important to understand the process of working with insurance whether you’re dealing with roof damage or not. Insurance policies are not all the same, and some may offer different levels of coverage. Take some time to read up about your insurance carrier and policy online, or even better, give your insurance company a call.
The terms below are key to any conversation about insurance coverage for roof repairs.
1. RCV:
The Replacement Cost Value coverage. This means your policy will pay the cost to repair or replace your damaged property without deducting depreciation.
2. ACV:
The Actual Cash Value coverage. This means your policy will pay the depreciated cost to repair or replace your damaged property.
3. Depreciation:
The decrease in the value of property over a period of time, usually as a result of age, wear and tear from use, or external economic factors. Actual physical depreciation (wear and tear from use) is subtracted from the replacement cost of insured property in determining depreciation.
Insurance companies usually calculate depreciation based on the property’s condition when it was lost or damaged, what a new item would cost, and how long the item would normally last. If you have replacement cost coverage included in your policy, you may be able to receive additional money to cover the depreciation of these items.
4. Deductible:
An insurance deductible is the amount of money you’ll pay out of pocket before your insurance company will pay on the claim. You’ll only pay a deductible if you file a claim. When the insurance company pays the claim, it will be for the total amount of the damage minus the amount of the deductible.
5. Adjuster:
A person employed by or under contract with the insurance company who is professionally trained to assess the damage to your property. Once you file a claim, the adjuster will come and perform an inspection of the damage to your property. Be sure to point out any damage that might not be obvious to them. The adjuster’s visit and report will not cost you any money.
Something to consider, though, is having a trustworthy roofing company come to assess the damage before calling insurance. If the repairs that the roofing company suggests are simple enough, it may be more worth it to pay for them out of pocket. Once you file an insurance claim that claim will stay with your property forever. Some realtors say that you don’t want too many insurance claims on your home because potential buyers can look up the full claim history associated with a home.
6. Scope of Work:
A line-by-line breakdown of each of the repairs or replacements needed for your home. This list is made by the adjuster for you, the homeowner. To make sure you have all your bases covered, you should plan to give a copy of the Scope of Work to your roofing contractor so that everyone involved is on the same page about the repairs and replacements that are needed.
7. Supplement Request:
Sometimes, once your contractor begins working on your home, they may find more damages than you had originally anticipated. This happens to one in three households, so do not fret if it happens to you! Your contractor will handle everything with the adjuster by submitting a Supplement Request on your behalf. The Supplement Request outlines what damages were not on the original scope of work and the funds needed to repair them.
If you have more questions about the role of insurance in your roof repair process, you can trust your insurance agent or your adjuster to help you. As always, you can also count on us at CoMitted 365 to answer any of your remaining questions.