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Old 01-02-2012, 07:54 PM   #1
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Looking to get an explanation regarding insurance claim and roof damage...


Hello,

I'm looking to see if anyone has been through a roof replacement due to a storm causing a tree to fall onto the roof. This obviously required an insurance claim.

I'm having a difficult time understanding the ACV/Depreciation/Replacement Cost. The issue is, am I supposed to show the insurance that work was completed and in turn, they would then cut another check for me?

I received a check for the ACV amount to repair the damages, but once all is said and done, I still owe money.

I looked and it looks like the roofing company billed me based off of the replacement cost and not the ACV amount. (ACV = Replacement cost - Depreciation) Is the insurance supposed to cut me another check?

I'm hoping that you guys have had experience with this and can shed light as this is my first home and first major issue.


Thanks so much.

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Old 01-02-2012, 08:02 PM   #2
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Looking to get an explanation regarding insurance claim and roof damage...


Quote:
Originally Posted by scottycam View Post
I received a check... but once all is said and done, I still owe money.
I looked and it looks like the roofing company billed me based off of the
(actual real world contracting business) replacement cost and not the ACV amount. (ACV = Replacement cost - Depreciation)

Is the insurance supposed to cut me another check?
Is the difference between those two numbers substantially different than the deductible amount on your policy?

Quote:
What is "Actual Cash Value"?
The term "actual cash value" is not as easily defined. Some courts have interpreted the term to mean "fair market value," which is the amount a buyer would pay a seller if neither were under undue time constraints. Most courts, however, have upheld the insurance industry's traditional definition: the cost to replace with new property of like kind and quality, less depreciation. Courts have varied in their rulings as to whether or not depreciation includes obsolescence (loss of usefulness as a result of outmoded design, construction, etc.).


What Does "Replacement Cost" Mean?
The term "replacement cost" is defined or explained in the policy. Simply stated, it means the cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose. This applies unless the limit of insurance or the cost actually spent to repair or replace the damaged property is less. Refer to your policy for the exact definition and explanation of replacement cost.


source

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Old 01-02-2012, 08:08 PM   #3
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Looking to get an explanation regarding insurance claim and roof damage...


How old were your shingles and what style were they.
There not going to pay full price to repair old shingles.
They need to pay for any wood damage caused from falling limbs but only a portion of the cost based on age of the shingles.
Time and time agin I've had to go look at roofs damaged from hurricanes and tornados and people think they should get a whole new free roof when there 3 tab shinlges are 15 years old and it had been leaking so the sheathing was already damaged. Not going to happen.
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Old 01-02-2012, 08:10 PM   #4
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Looking to get an explanation regarding insurance claim and roof damage...


Hi thanks..

The deductible amount was already taken off before the check was issued. (If that's what you were thinking).
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Old 01-02-2012, 08:18 PM   #5
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Looking to get an explanation regarding insurance claim and roof damage...


Joe..

Here's the problem.

I didn't ask for a new roof. I didn't ask for a tree to fall on my roof. So frankly, why should I have to pay for something that I didn't ask for.

The insurance is there to pay for whatever repair is needed, so I shouldn't have to put my own money out. Now, if they said they will cover the roof replacement for xxx amount and I decided that, hey, since they're up there replacing it, I'd like to upgrade it to the nex step up, then sure. I see where I would have to put money forward.

Besides, wouldn't it be in their best interest to fix it properly to prevent future claims due to water damage/leakage if they skimped out on the repair?
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Old 01-02-2012, 08:25 PM   #6
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Looking to get an explanation regarding insurance claim and roof damage...


Your insurance company should pay for everything that was damaged.
The only money you would owe is your deductable. Once the work is completed you would get the depreciation check.

Example: Total Rep Cost: 1000.00

ACV: 600.00 paid to you in first check

Recoverable Depreciation: 300.00 paid after work is completed

Deductable: 100.00 paid to contractor (your cost)

If you need to pay more than your deductable you need to find out the reason from your contractor and then call your insurance adjuster to work out further payment if justified.

Complete Roof

Last edited by chb70; 01-03-2012 at 08:47 AM.
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Old 01-02-2012, 09:14 PM   #7
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Looking to get an explanation regarding insurance claim and roof damage...


Thanks chb70..

That makes A LOT of sense now. Ok, so I guess they would need to come out and probably make sure the work was done and then I get the dep back? Thanks so much. This at least gives me a much clearer idea of the process.
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Old 01-02-2012, 11:57 PM   #8
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Looking to get an explanation regarding insurance claim and roof damage...


Just curious. Where is your insurance broker or agent in this? You should not be having to navigate and figure this out on your own.
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Old 01-03-2012, 12:08 AM   #9
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Good Question..

It wasn't until now that I realize that there are a lot of players involved when it comes to claims and general questions. I had to go through 4 people in order to get in touch with my actual appraiser. (3rd party)

I gave up after dealing with constantly getting transferred to more people that don't have the answers when I really needed to talk to someone. The reason I'm with them in the first place is because I have a really great veteran agent and have been with them for about 10 years now but he doesn't have all the answers when it comes to this aspect.

I suppose I could give it one more chance. I figured it would be faster to get the answer here and sure enough, I did.
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Old 01-03-2012, 01:13 AM   #10
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Looking to get an explanation regarding insurance claim and roof damage...


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Originally Posted by scottycam View Post
Good Question..

It wasn't until now that I realize that there are a lot of players involved when it comes to claims and general questions. I had to go through 4 people in order to get in touch with my actual appraiser. (3rd party)

I gave up after dealing with constantly getting transferred to more people that don't have the answers when I really needed to talk to someone. The reason I'm with them in the first place is because I have a really great veteran agent and have been with them for about 10 years now but he doesn't have all the answers when it comes to this aspect.

I suppose I could give it one more chance. I figured it would be faster to get the answer here and sure enough, I did.
Absurd. In your phone book look for insurance agents. Or better yet, ask around. What you want is an insurance broker though that is not married to a specific company. Find one people trust and not one driving the equivalent of a Mary Kay company caddy. And mail the calendar your agent sent you back with a "THANKS" for everything markered on the front.

Insurance is only as good as the agent or broker willing to go to bat for you. You should not be in this situation on your own.
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Old 01-03-2012, 07:14 AM   #11
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Looking to get an explanation regarding insurance claim and roof damage...


Your insurance will keep the amount that they depreciated until they have verified that work is complete.
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Old 01-03-2012, 08:54 AM   #12
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Looking to get an explanation regarding insurance claim and roof damage...


Quote:
Thanks chb70..

That makes A LOT of sense now. Ok, so I guess they would need to come out and probably make sure the work was done and then I get the dep back? Thanks so much. This at least gives me a much clearer idea of the process.
No problem Scottycam, it can definately be confusing for someone dealing with insurance scope and payments for the first time.

The insurance adjuster should have explained the process a little better to you.

Complete Roof
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Old 01-03-2012, 09:21 AM   #13
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Looking to get an explanation regarding insurance claim and roof damage...


Yeah, its ridiculous. When I first signed with them when I got my car, they were a local company. Then they got bought out and then bought out again so now they fall under a large umbrella.

I mean, I can't complain because they were willing to cover the roof and didn't really fight anything. So, I guess I'm lucky in that aspect, granted, I'm not sure if this is how smoothly it always goes.

As for the adjuster explaining it further.. he mentioned the process but when he came (from down south) I was number 6 for the day so it was in and out for him.

Eitherway, I appreciate everyone's input. For now, I have a MUCH better understanding of the process and feel relieved that in the end, I won't have to shell out any of my own money.

Big thanks to all of you. You have all been great. Until my next big issue.. Have a great 2012 everyone!
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Old 01-03-2012, 10:25 AM   #14
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Looking to get an explanation regarding insurance claim and roof damage...


that's ass backwards...the first thing is for you to get roofing/contractor estimates then the insurance comes in and estimates the total damage without knowing the estimated contractors numbers.if nobody showed up after the hit then it's on them...to the penny.i had a total roof ripe off after a Nor'easter back in 2010 Allstate signed off from their appraisal for $15,000 all i had to do was produce the receits and that was for a Cape Cod...35 x 35 and de-tached garage...20 x 20(3 layer ripoff on it) the house was $7500 and the garage was $1500 with rubberized freeze sheathing layed down prior to 100mph shingles.that they didn't eye ball it is bogus.... and patching can't be accepted due to the integraty of the rest of the connecting shingles in question..total rip-off is required and doing a roof in the winter is tricky compared to a hot summer with the sealing of the tiles with the sun....with different results and once it is tarp'd and nailed with fur strips the entire roof has to be done

Last edited by biggles; 01-03-2012 at 10:40 AM.
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Old 01-03-2012, 12:16 PM   #15
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Looking to get an explanation regarding insurance claim and roof damage...


The problem with getting one fail-safe answer on a forum like this, is that every state has slightly different insurance laws. In addition, every insurance company operates slightly differently. Then throw in the fact that every roofing company operates in its own way - some of them dishonest and shady - and you've got a recipe for disaster.

For the most part, insurance will pay for the cost of replacing similar (but new) material, minus your deductible, and minus whatever depreciation they figure is fair. As Joe said, you cannot expect to have them replace 15-20 year old shingles with new ones, and do so for no additional cost. You might get lucky, but probably not.

Always remember that no insurance company, or bank, is really your friend. They're there to make money.


Last edited by DrHicks; 01-03-2012 at 12:19 PM.
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