The insurance claim audit process is one of the most important first steps in determining who is going to pay for the damage. If a storm has occurred in proximity to your building location, the product manufacturer is likely going to share no liability for the damages. LSR has a number of hail tracking tools to identify the type and size of hail recorded throughout a region, which aids in our ability to detect and validate any damages. In order to ensure your roof’s integrity and warranty, you will need to file and insurance claim. This also serves to extend the warranty of your roof regardless of the roof’s age. The roof’s age does not disqualify you for an insurance claim and by law you can file a claim up to ONE year after the damage has occurred. We recommend that you take the following steps to properly file an insurance claim on your roof:
• Important to note the actual date of the storm
• Take pictures of your property as quickly as possible after the storm event occurred
• Make sure that the roofer on your roof is not a storm chaser (beware of out of town roofers!)
• Call in a local expert to serve as an advisor to meet with your insurance adjuster to ensure that all will be covered in the claim
There are some fundamental actions that you can take as an insured owner to guarantee that you receive the full value of your claim. After the insurance adjuster has provided an estimate to repair your property, you will receive a check for the Actual Cash Value. This amount is calculated from the Total Replacement Cost minus the Depreciation and your Deductible. If you settle for the ACV, then you are leaving money on the table. The Depreciation is actually called “Recoverable Depreciation” and should be pursued once the actual roofing contractor has completed the work. The ACV is strictly used as a deposit to hire the contractor, then upon completion of the job, you submit the contractor’s invoice to the insurance company for the remaining Recoverable Depreciation. Sometimes the insurance company will issue the check as a joint check between you and your contractor to ensure that they are paying for what actually got done.
Let’s say you have a 20 Year TPO Roof System that is 10 years old and cost $100,000. Your deductible is $5000. The insurance company will give you an Actual Cash Value of $100,000 minus 50% Depreciation and your $5000 deductible. So the insurance company issues you a check for $50,000. You then use this as a down payment to the roofer. Once the job is completed, the remaining $50,000 will be paid upon your insurance company receiving the final invoice from your roofing contractor.
We’ve had some cases where an insurance company has indicated that a particular roofing company can do the repairs or replacement. This simply is not true! By law you are entitled to use any roofer or contractor of your choice. In Texas, that means any roofer, but we would certainly caution any homeowner or commercial building owner to avoid working with non-certified, non-insured, out-of-town roofing contractors. The insurance company has to honor any roofer’s pricing as long as it is reasonable and meets Xactimate® or other authorized pricing standards and guidelines. So don’t compromise the quality of your repair or roof replacement by hiring the cheapest contractor. As long as you are paying your deductible (which is required by law), pick the best contractor available to do the job– LSR!