How do insurance claims for roofs work?

[Assman 1830]

We are currently under contract to sell our home.  The prospective buyer had an inspection done and the inspector noted hail damage on the roof.  We called our insurance company who sent out an adjuster, who confirmed that the entire roof needed to be replaced.  He gave us this estimate:

Replacement cost value:  $21k

Less depreciation recoverable:  $6.5k

Actual cash value:  $14.5k

Less deductible:  $2.5k

Net claim:  $12k

The adjuster said the insurance would give us an initial check for $12k.  Questions I have:

1.  Are we only going to get reimbursed for the $12k since that is the net claim? 

2.  How does depreciation play into this?

3.  Do they just pay us $12k and it's up to us to make it happen?  Or do we send them an invoice of the work completed and they pay the roofing company? 

 

Edited November 3, 2019 by Assman

[ROFL BOX 6649]

52 minutes ago, Assman said:

We are currently under contract to sell our home.  The prospective buyer had an inspection done and the inspector noted hail damage on the roof.  We called our insurance company who sent out an adjuster, who confirmed that the entire roof needed to be replaced.  He gave us this estimate:

Replacement cost value:  $21k

Less depreciation recoverable:  $6.5k

Actual cash value:  $14.5k

Less deductible:  $2.5k

Net claim:  $12k

The adjuster said the insurance would give us an initial check for $12k.  Questions I have:

1.  Are we only going to get reimbursed for the $12k since that is the net claim? 

2.  How does depreciation play into this?

3.  Do they just pay us $12k and it's up to us to make it happen?  Or do we send them an invoice of the work completed and they pay the roofing company? 

 

Sending PM.  Ain't no joking around.

[ROFL BOX 6649]

Quickest info:

Total estimated cost (what the adjuster ...says... the cost is):  $21,000.00.  Could be higher, actually, because sometimes the adjuster makes a mistake; under-measures, forgets to include things, uses improper calculations, leaves off something that should have been paid for, etc.  This can all be rectified on the back-end.  It is done via supplemental invoice sent to insurance.  A LOT of salesholes try to cheat the system & ask for shit after the fact whereas I try to get all of that approved up front & through conversations with the inside adjuster (the person who is cutting the check on behalf of your insurer).

Up front money (ACV, or "Actual Ca$h Value") is to get materials purchased, pay part of the labor, etc.

Amount you get AFTER the work is completed & upon receipt of invoices:  $ 6,500.00.  E.T.A.  I say "you get", but really that belongs to the contractor.

Your out of pocket is ONLY the deductible unless there is some kind of upgrade requested... ins. gets you to a 1:1 situation all for your deductible. Also, if in Texas you are now required by law to pay the full deductible & there's no "waiver" available.

Put all of that together & it equals the $ 21,000.00 figure.

 

We even have to list a specific set of language on our contracts & in size 12 font.  https://www.tdi.texas.gov/news/2019/tdi08072019.html

PS:  It is not uncommon for me to receive final payment on closing for real estate transactions.  If there is a mortgage co. involved, this can entangle things a bit, however it's not too terribly difficult... the title co. should have experience in this as well.

Edited November 3, 2019 by ROFL BOX

[Kennythetiger 9388]

Say what you want to about Rofl and his picture jokes, but he's probably doled out more useful information that anyone on Shag/Surly.  Except Briscoe.

[luke duke 6413]

We are currently under contract to sell our home.  The prospective buyer had an inspection done and the inspector noted hail damage on the roof.  We called our insurance company who sent out an adjuster, who confirmed that the entire roof needed to be replaced.  He gave us this estimate: Replacement cost value:  $21k

Less depreciation recoverable:  $6.5k

Actual cash value:  $14.5k

Less deductible:  $2.5k

Net claim:  $12k

The adjuster said the insurance would give us an initial check for $12k.  Questions I have:

1.  Are we only going to get reimbursed for the $12k since that is the net claim? 

2.  How does depreciation play into this?

3.  Do they just pay us $12k and it's up to us to make it happen?  Or do we send them an invoice of the work completed and they pay the roofing company? 

 

 

 

Quickest info:

 

1. You get $12k now and $6.5k after the work is done. You’re on the hook for your $2.5k deductible.

2. It doesn’t, unless you don’t fix your roof.

3. They pay you $12k. You get the roof fixed and then they give you $6.5k more.

 

[deadshank 24653]

On 11/3/2019 at 1:46 AM, ROFL BOX said:

Quickest info:

Total estimated cost (what the adjuster ...says... the cost is):  $21,000.00.  Could be higher, actually, because sometimes the adjuster makes a mistake; under-measures, forgets to include things, uses improper calculations, leaves off something that should have been paid for, etc.  This can all be rectified on the back-end.  It is done via supplemental invoice sent to insurance.  A LOT of salesholes try to cheat the system & ask for shit after the fact whereas I try to get all of that approved up front & through conversations with the inside adjuster (the person who is cutting the check on behalf of your insurer).

Up front money (ACV, or "Actual Ca$h Value") is to get materials purchased, pay part of the labor, etc.

Amount you get AFTER the work is completed & upon receipt of invoices:  $ 6,500.00.  E.T.A.  I say "you get", but really that belongs to the contractor.

Your out of pocket is ONLY the deductible unless there is some kind of upgrade requested... ins. gets you to a 1:1 situation all for your deductible. Also, if in Texas you are now required by law to pay the full deductible & there's no "waiver" available.

Put all of that together & it equals the $ 21,000.00 figure.

 

We even have to list a specific set of language on our contracts & in size 12 font.  https://www.tdi.texas.gov/news/2019/tdi08072019.html

PS:  It is not uncommon for me to receive final payment on closing for real estate transactions.  If there is a mortgage co. involved, this can entangle things a bit, however it's not too terribly difficult... the title co. should have experience in this as well.

Listen to this man, he's pre-med.  

[ROFL BOX 6649]

@Assman, you out there?

[UTPhil2006 3807]

On 11/4/2019 at 6:43 AM, Kennythetiger said:

Say what you want to about Rofl and his picture jokes, but he's probably doled out more useful information that anyone on Shag/Surly.  Except Briscoe.

So you're saying you don't wanna refinance?

[T’Boo Ted Marshall 2732]

Hire the roofers that knock on your door. They are legit.

[ROFL BOX 6649]

6 hours ago, T’Boo Ted Marshall said:

Hire the roofers that knock on your door. They are legit.

[Horns99 155]

Quickest info:

Total estimated cost (what the adjuster ...says... the cost is):  $21,000.00.  Could be higher, actually, because sometimes the adjuster makes a mistake; under-measures, forgets to include things, uses improper calculations, leaves off something that should have been paid for, etc.  This can all be rectified on the back-end.  It is done via supplemental invoice sent to insurance.  A LOT of salesholes try to cheat the system & ask for shit after the fact whereas I try to get all of that approved up front & through conversations with the inside adjuster (the person who is cutting the check on behalf of your insurer).
Up front money (ACV, or "Actual Ca$h Value") is to get materials purchased, pay part of the labor, etc.
Amount you get AFTER the work is completed & upon receipt of invoices:  $ 6,500.00.  E.T.A.  I say "you get", but really that belongs to the contractor.
Your out of pocket is ONLY the deductible unless there is some kind of upgrade requested... ins. gets you to a 1:1 situation all for your deductible. Also, if in Texas you are now required by law to pay the full deductible & there's no "waiver" available.
Put all of that together & it equals the $ 21,000.00 figure.
 
We even have to list a specific set of language on our contracts & in size 12 font.  https://www.tdi.texas.gov/news/2019/tdi08072019.html
PS:  It is not uncommon for me to receive final payment on closing for real estate transactions.  If there is a mortgage co. involved, this can entangle things a bit, however it's not too terribly difficult... the title co. should have experience in this as well.

Is there a time limit on the depreciable part of the claim? IE: we finally got the roof replaced 3+ years after the hail claim. Can we still try and get paid for the depreciable portion of the claim?

[NeverMarryAStripper 21907]

It’s fully depreciated by now

[ROFL BOX 6649]

1 hour ago, Horns99 said:

 

Is there a time limit on the depreciable part of the claim? IE: we finally got the roof replaced 3+ years after the hail claim. Can we still try and get paid for the depreciable portion of the claim?

That would probably depend on your carrier & the language in your policy.  You are welcome to PM me for a quick discussion; I think @Elvis might also have some insight into this.

[Grippe 310]

On 11/4/2019 at 6:43 AM, Kennythetiger said:

Say what you want to about Rofl and his picture jokes, but he's probably doled out more useful information that anyone on Shag/Surly.  Except Briscoe.

Right up there with Thujone's posts on Bob Stoops' phallic addicktions.

[Grippe 310]

On 11/5/2019 at 11:42 AM, UTPhil2006 said:

So you're saying you don't wanna refinance?

Somewhere Hugo is crying to himself on why he's not considered the coolest kid on the playground.

[Elvis 3371]

On 11/7/2019 at 6:33 PM, Horns99 said:

 

Is there a time limit on the depreciable part of the claim? IE: we finally got the roof replaced 3+ years after the hail claim. Can we still try and get paid for the depreciable portion of the claim?

 

The time limit for recovering depreciation is typically 1 year from the date of loss, but you can request 6 month extension in writing (before the 1 year expires).  Your policy language may vary.  You should still show them that you had the work done so that it will be fully covered for the next storm.  

[drt 638]

@ROFL BOX

So in a somewhat related question, we have a hail claim that was approved.  Our adjuster noted damage to the carport and our claim included a payment for that.  However, it's one of those ugly aluminum monstrosities that I'm pretty sure one can't and wouldn't "repair", and I'm fairly certain the payment wasn't enough to replace it (if we'd even want to).  I also haven't broken out the tape measure but I'd bet it doesn't meet setback requirements, so pulling a permit would be more headache than I want to deal with.

Since the insurance company has given us money, are we obligated to spend it on the carport (or main dwelling roof)?  Full disclosure we're selling the house, so while upgrading the venting to a ridge vent would be nice I don't really want to spend extra money.

[NeverMarryAStripper 21907]

No you are not obligated to spend the money on repairing it.  However, the insurance company will have calculated some depreciation amount for the carport and you will not be entitled to that amount like you would if you did the repair.  Also, if you have another claim that involves the carport it should be disallowed.  I was in the same situation on my hail claim.  There was damage to the roof, windows, gutters, and fence.  I had the roof and windows replaced, but did not do anything about the gutters or fence.  In my case when the insurance company asked for proof that the repairs were done I just sent them the invoices for the roof replacement and the window replacement and they sent me a check for the full amount of the depreciation and never asked or anything on the gutters or fence.  The depreciation amount on those items really wasn't very much though.

[ROFL BOX 6649]

@drt, apologies for the late response.  @NeverMarryAStripper did get the situation correct.  Any item that you don't complete won't have any recoverable depreciation paid to you.

 

That said, a metal carport / patio / porch structure is typically going to be depreciated based on a 50 year expected lifespan.  Even if it's 40 years old & dirty / dingy, the dollars allocated by insurance is going to pay for a complete replacement & it's possible that in this "40 years old from a 50 yr lifespan" scenario, the bulk of the dollars to collect are going to be on the backside, i.e. once the work is completed.

My point is, don't write this off as a "take the money & run" just yet.

Also, where are you located?

[Catpfish 618]

Assuming in Texas, you'll also have to check the box on the seller's disclosure that you received money from an insurance claim and didn't complete the repairs.  While not that big of a  deal, it can cause some buyer's to get extra cautious and pass or get overly nitpicky

[ROFL BOX 6649]

FYI:

 

FOR ALL APPROVED INSURANCE CLAIMS, “

Texas law requires a person insured under a property insurance policy to pay any deductible applicable to a claim made under the policy. It is a violation of Texas law for a seller of goods or services who reasonably expects to be paid wholly or partly from the proceeds of a property insurance claim to knowingly allow the insured person to fail to pay, or assist the insured person’s failure to pay, the applicable insurance deductible.”

That has to be on EVERY insurance claim contract for a property claim over $ 1,000.00 & it has to be in size 12 font, boldfaced.

 

[drt 638]

@ROFL BOXI'm in Austin.  You actually patched up our roof after that tree fell on the electrical line and ripped the mast down.  I'm still amazed our house didn't burn down.

 

[ROFL BOX 6649]

Ah, yes... S. of Ben White.

Sending you a text.

Scheduling it to land on your phone @ 0900.

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