1. Get your roof checked out for free by a Roofer in Littleton.
If you think your home or business roof has hail damage from a recent storm, the first step is to get a free inspection done by a reputable Littleton roofing contractor. The reason for this is that you don’t want to have an insurance adjuster come out if you don’t have damage. Some insurance companies will penalize you for filing a claim and this could negatively affect your policy status.
2. Call an Adjuster for Roof Damage in Littleton CO.
If the contractor finds no damage to your roof or only minor damage, then there is no need to contact your insurance company at all. If the contractor does find significant insurable damage, then you will want to file a claim and have your insurance company send out an adjuster.
Remember that the insurance adjuster represents the insurance company’s interests, not yours. So don’t just rely on only your adjuster’s inspection. You have the right to have your Littleton roofing contractor present at that appointment to represent your interests and make sure that all applicable damage is covered.
3. Insurance Scope.
If the adjuster determines there is damage when he meets with your contractor, it usually takes about a week (although in some cases it could be same day) until you receive a list of damages the insurance company has agreed to pay for, along with your first check.
This 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, and 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 agree to perform the work for the RCV amount paid by insurance, whatever that amount may be. So, your only out of pocket expense will be your deductible.
So, for example, let’s say you have a 10-year-old roof, and the actual cash value of that roof is $8,000. Let’s also assume it will cost $15,000 to get your roof replaced with a new roof of like kind and quality. $8,000 is the ACV; $15,000 is the RCV and the $7,000 difference represents the depreciation.
The insurance company will write you a check right away for $8,000 (ACV). Once the work is complete, your contractor will submit a certificate of completion to the insurance company for the work that was done. At that point, your insurance company will release your depreciation payment. 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 (there may also be non-recoverable depreciation in some cases, but that is beyond the scope of this article- please ask your project manager to explain) 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. This is why it’s so important to have a roof repair company in Littleton, such as Colorado Superior Roofing and Exteriors, that has the knowledge and expertise to help you get the most out of your claim. Contact us today at 303-937-7000 or fill out our online contact form so we can help you with your Littleton hail damage claim.