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The Tricky Business of Insurance Deductibles and Roofing Contractors

Understanding Insurance deductibles and claim forms.

Giving You the 411 on Roofing Contractors and Insurance Deductibles

So you’ve discovered one of the most important elements of your home, the roof, has been damaged and needs repair. Ugh! As if the roof being damaged isn’t enough! Along with these repairs, many times homeowners are faced with filing an insurance claim. Insurance claims usually lead to questions about insurance deductibles and policies. We’re often asked if it’s possible for our company to waive or cover the deductible on an insurance claim for the roof repair.

Your Roof Isn’t The Only Thing That Should Be on the Up and Up

Many roofing contractors who seem legitimate will tell you it is legal to cover the insurance deductibles on an insurance claim. You may have seen many advertise this as a “discount” or “free upgrade” or even “free roof!”  Because it has become such a common practice, it is no wonder many homeowners often ask us this question. We are then put in a tough spot because we are not willing to compromise our own business ethics to compete with other seemingly legitimate roofers who will.

Although this type of transaction may often occur, it is not legal.  Therefore, it is our job as a high-quality, experienced roofing company to help you understand today’s insurance claim process.  You’ll be able to make an informed decision that is legal and ethically sound.

Replacement Cost Value

In the past, the insurance claim process operated differently than it does today.   As recent as 15 years ago, insurance companies would just subtract the deductible amount from the total cost of repairs and issue the homeowner a lump sum payment for the damages. It was then up to the homeowner whether or not they utilized the money to repair their roof.

Today, the majority of property owners have Replacement Cost Value (RCV) provisions in their insurance policies. An RCV provision calculates the cost of a new roof while factoring in depreciation. These RCV provisions mean homeowners may end up receiving multiple payments. These checks will often bear the name of the mortgage company (or owner of the property) as a cosigner. It would be necessary to go through a licensed contractor who would in turn bill the insurance company and the mortgage company for the completed work if the homeowner wants to receive the entire sum of the insurance claim.

The Importance of Knowing Your Roofing Contractors Values

So, I know you’re wondering how roofing contractors are waiving or absorbing insurance deductibles.  Bottom line, they are lying to the insurance and the mortgage company. The insurance policy of the homeowner is a contract. This contract is strictly between the insurance company and the homeowner.  Per this legal agreement, both parties are obligated to uphold their end of the deal. The homeowner pays annual premiums to the insurance company in exchange for protection from catastrophic damages sans the deductible.

Just as you would have legal protection if the insurance company breached the contract and refused to pay a claim, the insurance company is also protected. Should you fail to uphold your legal obligations as a homeowner, the insurance company is covered. For example, if you provide the insurer with inaccurate information to save on premiums or deductibles.  Simply put, whether or not you get caught, it is unethical to provide false information to your insurer or to work with a roofing contractor who is willing to help you do this.

Best Practices for Filing a Homeowner’s Insurance Claim

Peach State Roofing & Renovation is a roofing company you can trust to do what is both ethical and legal.  We are here to help you through this daunting process. Here are some simple steps for you to follow in order to ensure you are utilizing best practices when filing an insurance claim:

  1. Schedule your trusted roofing company to come and inspect.
  2. IF there is damage, call your insurance provider and ask to have the adjuster meet with your trusted roofing representative.
  3.  If the damage is confirmed by the adjuster, send the estimate or “loss report” to your trusted roofing company to review.
  4.  In most cases, the estimate the insurance company must provide is sufficient for roof replacement.  If not, ask your trusted roofing company to negotiate on your behalf.