Step 1: File your claim
Call your insurance company to file a homeowner’s claim. Confirm your deductible amount for future reference. Many of our clients find filing online faster, which avoids lengthy hold times. Most insurance companies have a specific department, not your agent’s office, to file homeowner’s claims.
- State Farm
- Madison Mutual
- State Auto
- The Hartford
Step 2: Call your Mortgage Company
Your mortgage company is an “additional insured” on your insurance policy because the property is held as collateral on the loan. If you would not repair the damaged property, the bank’s collateral value will be lowered. Therefore, every claim payment over a threshold amount, currently $7500, requires the mortgage company to sign off on the insurance checks.
Once you file your claim, call your mortgage carrier as soon as possible. Most large and regional banks have a “loss control department” that handles insurance losses. At most community banks, your loan officer or vice president will be your contact person. Explain to them that you will be receiving an insurance claim settlement from storm damage to your home and send the required paperwork for an insurance claim. This speeds up the process drastically and ensures your project will not experience delays. Hold these documents until confirmation of your claim. Your Daech & Bauer Roofing consultant will help you complete the paperwork later on in the process. In the event the insurance carrier denies the claim, you have the claim packet for your files.
Step 3: The Adjustment Process
Your insurance carrier will then assign an adjuster who will visit the home to confirm damage severity and confirm whether there is a covered loss. Upon request, A Daech & Bauer Roofing & Remodeling consultant can be present for this inspection.
Once a settlement is figured, most insurance carriers mail the claim summary within 7-10 days. This is the insurance companies’ initial assessment and estimate of your damage. The carriers use predetermined prices, based on market analysis, by a 3rd party vendor called Xactimate, in most cases. Once this claim summary arrives, we will review these documents to ensure everything is included that is needed to complete the roof system properly. Most often the initial insurance estimate leaves out several important components that are required to complete your roof system properly.
Step 4: Claim Supplement
Most items missed by the insurance carrier are simple oversights. In order for us to ensure we provide you with a complete roof system, with high quality products, professional service, and excellent craftsmanship, it’s critical your carrier covers the claim in full. This must include all the products required in order to follow the manufacturer, NRCA, and local building code specifications. Failure to cover one of these steps results in an inferior roofing and siding system. Unfortunately, this is all too common in our industry, especially during a storm environment, and it’s why our industry has such a poor reputation. Although this significantly delays the production time, we will not sacrifice our quality to skip this process if needed. Your roof system is designed to last over 25 years so it’s prudent to make certain things are done correctly. Our team is properly trained and experienced to ensure your carrier covers the project step by step, never missing critical components in the process. We provide your carrier with the required documentation to cover these items.
Step 5: Depreciation Recovery
Almost all insurance carriers apply depreciation to each item in the settlement. This amount is determined by dividing the “used up” portion of the product vs. its life expectancy. For example, if your roof system is a 30-year system and it’s been on your house for 15 years, your carrier will depreciate the settlement by 50%. They will then issue an Actual Cash Value (ACV) check based upon this amount less your deductible. When the work is complete, an invoice must be sent to your insurance company for them to “release” the depreciation portion of your claim settlement. This is referred to as the Replacement Cost Value (RCV). In order for you to receive the depreciation amount in full, you must complete the claim in full and provide invoices for the work. When the work is complete, the insurance carrier then pays you only for the depreciation they applied for the items repaired.
As a customer courtesy we will forward a copy of the invoice to your insurance carrier on your behalf. However, it’s often a good idea for you to call and follow up to make certain the depreciation payment is being processed and full payment is sent in a timely manner.
Step 6: Do you have a Mortgage?
Most of our clients restoring their homes through an insurance claim find their claim drafts have their mortgage carrier endorsed as an additional payee. The mortgage companies can be incredibly tedious to work with. In recent years, due to the failing housing market, there is substantially more paperwork and your involvement most likely will be required. Our staff will facilitate the process but we may need your assistant to make a few followup calls. It’s crucial for us to work together so you receive your funding in a timely manner.