Hail Damage Roof Repair

How Does Hail Damage my Roof?

Asphalt shingles are designed with protective mineral granules that block the UVs of the sun and protect the underlayment. Hail damage can cause severe granule loss, material removal at the edges of the shingles and penetration of the shingles.  All of these things prematurely age the life of the roofing structure and will eventually cause leaks. Hail can damage and degrade virtually any type of roof, including modified bitumen, EPDM, TPO, metal and tile.

Can I Tell If I Have Hail Damage to My Roof, From the Ground?

Usually, you can’t spot hail damage to your roof from the ground. You will be able to easily spot damage to your siding or gutters. Also, if there’s visible damage to your car, your roof most likely has hail damage too.  Hail damage is not always immediately evident.  So, it’s a good idea to contact a local, professional roofing contractor, who specializes in roof hail damage to evaluate the extent of damage after a storm.

Will My Home Insurance Rates Go Up If I File a Claim for Storm Damage Roof Repair?

Typically, insurance companies cannot single out a homeowner for rate increases based on a hail damage roof repair claim. However, your insurance company can raise rates for everyone in your area based on the severity of the storm.  So, if you don’t file a claim, your increased premium will pay for everyone else’s repairs, NOT yours.

How Does the Claims Process Work for Hail Damage Roof Repair?

If the insurance adjuster agrees there is damage you will receive an insurance scope in about a week.  A scope is a list of damages the insurance company has agreed to pay for.  At the time you receive the scope you will also receive your first check. 

This check is the ACV (Actual Cost Value) check. This represents the fair market value of your roof today. Much like a car, a 10-year-old roof is worth less than a new roof.  The difference between those two amounts is called depreciation. So, the ACV is the cost to repair or replace the damaged property, minus depreciation.

The ACV plus the depreciation (which you will be paid AFTER the work is done), equals the RCV (Replacement Cost Value). Most storm damage contractors will perform the work for the RCV amount paid by your insurance company.  So, your only out of pocket expense will be your deductible.

For example, if you have a 10-year-old roof, the actual cash value of that roof might be $8,000.  Let’s assume it will cost $15,000 to get your roof replaced with a similar quality new roof.  $15,000 would be the replacement cost value or RCV.  The $7,000 difference between the ACV and RCV represents the depreciation.  Roof age and condition are considered when calculating this depreciation. The older the roof, the higher the depreciation amount.

Your insurance company will write you a check right away for $8,000 (ACV).  Once the work is complete, your contractor will submit an invoice to your insurance company.   Then your insurance company will release your depreciation payment ($7,000 in this case).  Once received, you will either sign that check over to the contractor or deposit it into your account and issue a personal check to the contractor for the remaining balance of the work.

Keep in mind that when the work is completed, the insurance company will issue a check for the recoverable depreciation only if the total expenses are equal to, or greater than the total settlement. Many people never get the final depreciation payment because they do not understand the process, or the contractor they chose didn’t understand the proper procedures. When this happens, you can lose thousands of dollars.

Do I Need Multiple Contractor Estimates for Hail Damage Roof Repair?

For storm damage roof claims, there is no point in getting multiple contractor estimates. You are not required to do so, and it might even be against your best interests.  Your insurance company has created their own price list for all repairs.  They will only pay the lesser of their fixed price list or the price you are charged by your contractor.  

So, let’s say your insurance scope says $15,000 and you get a contractor estimate for $12,000.  In that case your insurance company will only pay you $12,000 (minus your deductible).  Your contractor has to submit a final bill to the insurance company to get the rest of your money (the deprecation) released.  So there is no way to profit from your insurance claim without submitting a fraudulent invoice. 

Most storm damage roofing companies handle your hail damage roof repair for the amount the insurance company is paying. Your only out of pocket expense will be your deductible.  Since you are paying the same amount either way, would you rather get a $12,000 roof or a $15,000 roof?   Why would you go with a contractor willing to do the job for below market rates?  You can’t keep the difference.   All you are doing is saving your insurance company money and most likely getting an inferior roof.  

So, feel free to interview several companies so you can find someone that you are comfortable with.  Make sure they use quality materials, and will be around for the warranty period.  But getting multiple estimates or using price as the determining factor makes little sense. 

What If I Get a “Low Ball” Offer from my Insurance Company?

This happens probably 80% of the time on storm damage roof claims and it’s not for the reason you might think.  When an insurance adjuster agrees to buy you a new roof, he will quote you a “standard” roof.  A standard roof has underlayment, shingles (or tile, metal, etc.), ridge cap, ventilation, and nails.   But that adjuster can’t see what is under your current outer layer.   You may have rotted decking that will need to be replaced as part of the process.  He also doesn’t account for the dozens of different code requirements across the state.  These code requirements will require additional items like ice and water shield, drip edge, valley metal, etc. There could also be things like damaged gutters, or windows, that the adjuster missed. 

The insurance company relies on the contractor to inform them of these issues.  It’s a normal part of the process.  There is no  lawyer from the TV commercials “fighting” the insurance company.  This process is called insurance supplementing and it’s crucial to have a contractor that is intimately familiar with Colorado building codes, insurance laws and procedures to make sure you get everything covered. 

After the insurance company approves the supplement, they will issue you a new scope which includes these increased amounts. These supplemental amounts will become payable to your contractor once the work has been completed.  Remember that additional supplements approved by your insurance company do not increase your out-of-pocket costs. In most cases, your only out of pocket expense for your hail damage roof repair will be your deductible. 

Supplements are additional money that the insurance company has agreed to pay your contractor for the additional work performed on your storm damage roof repair claim.  This is not money that you are entitled to keep, as it raises the same insurance fraud issues discussed as covering, waiving, or rebating your deductible.

At CSR, we are insurance claims experts. We even have former insurance adjusters on staff.  That means we can handle the entire process to make sure you get everything covered.  We can handle all the red tape for you and work directly with your insurance company to resolve your storm damage roof claims.

Can You “Cover” My Deductible?

Under Colorado law it is insurance fraud (both on your part and the part of your contractor) for a contractor to pay, waive, or rebate any portion of the insurance deductible or for you to keep any amounts that the contractor has billed the insurance company for.

In addition to the prospect of getting into legal trouble (and insurance companies are cracking down on this type of activity), there’s another concern.  A roofing company that is willing to commit insurance fraud and induce you to do the same is very likely to make up the amount they credited you by taking other shortcuts like using inferior products on your roof. Many of these companies are from out of state and aren’t going to be around to perform any warranty work on that inferior job either.   There are some legal ways we can work with you to help lessen the impact of your deductible and we’d be happy to discuss those with you.

Colorado Superior Roofing experts have decades of combined experience in the hail damage roof repair claims.  We are A+ rated with the Better Business Bureau and proud members of Team Dave Logan.  Our offices are in Lakewood, Parker, Littleton, Denver, Colorado Springs, and Longmont.  So wherever you are, we’re not too far.  Give us a call. We offer Free Inspections.

Should I Use the Insurance Company’s Recommended Roofer?

You’re legally entitled to use whatever contractor you want for your storm damage roof claims. We’ve been invited to be a part of “referral networks” by many insurance companies. However, in most cases to do so, you must agree to do things the way the insurance company wants you to do them.  Often times this is not what’s in the best interests of the homeowner.

The insurance company’s “preferred contractors” will have incentives to keep costs low, which means they aren’t doing all they can to get you the best roof possible. Remember that all you are going to pay out of pocket is your deductible regardless of whom you hire. That means for $1,000 (or whatever your deductible amount is) you can get a top-quality product from a highly reputable contractor who is focused on your best interests, or you can go with the lowest bidder from the insurance company and take your chances.