We often get many questions about homeowner’s insurance, deductibles, depreciation, recoverable depreciation, and roofing, and repairing damages, payment schedules, and inspections . We have built relationships in the insurance industry based on integrity, and professionalism, and we are very experienced in working with homeowner’s insurance companies to ensure our customer’s are properly taken care of, and all damages get repaired. This is not meant to be a complete list of everything you need to know but this should cover many of the basics and put you in a more informed position.
Q: Should I call my insurance company or Chazown Roofing and Construction LLC, when I think I have experienced some roof damage?
We recommend you should always call Chazown Roofing first, before you call your insurance agent. When you call your agent, whether you have damage or not, it often has a negative effect on your premiums, by increasing the cost of your premium. Chazown Roofing always offers free roof inspections, as well as an inspection on the rest of your property, to determine if there is damage, and to determine if there’s enough damage to call your insurance agent, and to file a claim. Sometimes the damage is too minimal to file a claim and it’s more cost effective to pay out of pocket if the damages are less than your deductible. For instance, if you have a $3500 deductible, and the damages are close to that amount, it’s better to pay out of pocket and never file the claim, than to file the claim, and still have to pay out of pocket.
Q: If we do have damage, does Chazown roofing need to be there when the insurance adjuster comes to inspect?
Absolutely yes! There are many times that we have been able to work with the insurance adjuster and show them many more instances of damage than their once over typically provides. We make sure that not only your roof gets a good inspection, but also your gutters, siding, fencing, windows and screens, air conditioning unit, boat, deck, carport, metal storage building, shed, and more are all given a good inspection. If the insurance adjuster has already inspected and provided a report, we will make sure the adjuster didn’t miss any damage. If the adjuster missed some damage, we will submit what is called a ‘supplement’ to the insurance company to request additional funds, to repair the damages that were not reported by the insurance adjuster.
Q. How does Recoverable Depreciation work?
First, its important to check to see if you have recoverable, or non-recoverable depreciation. In most cases depreciation is recoverable, but sometimes it is non-recoverable because the policy owner may have an Actual Cash Value Policy, the repairs/replacement were not done before a certain deadline, or other reasons. You can verify if your depreciation is recoverable on your insurance adjustment, or on your insurance declaration page or policy.
If your depreciation is recoverable, then you will need to spend the amount that your insurance adjustment indicates as the Replacement Cost Value of the repairs/replacement in order to receive the check for full Recoverable Depreciation. Chazown Roofing and Construction accepts the Actual Cash Value payment, including the deductible, once the roof is substantially complete, and as a courtesy, waits for the client to receive the Recoverable Depreciation.
A copy of the Chazown Roofing Invoice is submitted to the insurance company, which indicates the work was completed, and the insurance company will release the Recoverable Depreciation to you. The invoice may indiacate any payments, however the total payments and remaining balance, must equal the Replacement Cost Value in order to receive the total available Recoverable Depreciation. The insurance company will only send you the Recoverable Depreciation that you are invoiced for by Chazown Roofing – they do not reward their insured’s for saving money.
We will work with our customers to earn your business.
A home is insured for $100,000 and has a totaled roof from a hail storm, and the cost to replace the roofing system (Replacement Cost Value) is $10,000. In this example the roof is 15 years old and the policy owner’s deductible is 1% of the insured amount ($1000).
The full replacement cost of the roof is $10,000.
The insurance adjuster ‘depreciated’ the roof 50%, based on its age, so the Actual Cash Value of the roof is now $5000 ($10,000 replacement value less $5000 Actual Cash Value).
The policy owner’s deductible is $1000.
The insurance company will initially make a payment to the policy owner for $4000. They arrived at $4000 because the Actual Cash Value is $5000, and they withold/deduct the deductible amount of $1000.
Chazown Roofing and Construction LLC will perform the work, and the policy owner will make a payment of $5000. The $5000 comes from the $4000 that the insurance company has already paid, and the $1000 deductible.
Once the insurance company has the final invoice from Chazown Roofing and Construction LLC for the full Replacement Cost Value, with a request from Chazown Roofing and Construction LLC to release the Recoverable Depreciation, the insurance company will release the $5000 Recoverable Depreciation to Chazown Roofing and Construction.