Why is my insurance check less than what my roof will cost?
There are two main deductions from an adjuster’s estimate of what your roof will cost. The first is your deductible. The second is for betterment or depreciation.
What are RCV, ACV, and depreciation?
RCV stands for Replacement Cost Value, which is the current retail cost to replace damaged items. ACV stands for Actual Cash Value. As an example, assume a roof in year 10 of an expected 20-year life is totaled by hail. The cost to replace the roof is $10,000. RCV would be $10,000 and ACV would be $5,000 (10/20ths of $10,000). The difference, $5,000, is depreciation, which is additional funds you receive. Generally, depreciation is paid after you submit a final invoice.
Is the adjuster’s calculation of my replacement cost set in stone?
No. There are many human factors in the process. Your contractor and adjuster routinely reconcile a few items. You should not be concerned if your estimate from Bert Roofing differs from the adjuster’s. The main cost factor in a shingle is asphalt, which is a petroleum product, and shingle prices have moved significantly with the price of oil.
Bottom line, what is the cost to the homeowner?
Under the most common replacement-cost policies (RCV), the homeowner’s out-of-pocket cost is the deductible plus any upgrades you choose.
I found a contractor who will do the job for less than the adjuster calculated. Can I use that savings to reduce my deductible?
No. Your deductible always comes first. Choosing a cheap contractor only saves your insurance company money. When you submit an invoice lower than what the adjuster calculated, the carrier reduces the depreciation amount it later pays you. Submitting a false invoice is not legal.
A contractor offered to cover my deductible. Is that proper?
No. It is improper to cover a deductible, and a reputable contractor will not do it. Texas regulates this practice directly. Read more on our Texas Insurance Fraud Laws page.
How long does it take to receive depreciation funds after I submit a final invoice?
Not long. By law, the carrier must release the funds within a few days of receiving the invoice.
What about a sign allowance or referral fee?
It can be legitimate, but it is often just a disguise for covering a deductible. To be legitimate, the fee must be the same whether or not you buy a roof, and it must be reported as taxable income.
Roof Replacement Insurance FAQs for Dallas Homeowners
If you are in the Dallas area, North Texas storms can bring strong winds and damaging hail. It can be difficult to tell from the ground whether the damage is significant. Contact Bert Roofing for a roof inspection. We document visible damage with photos and provide a detailed estimate that you can use when working with your insurance carrier. After a storm, watch for the common roofing scams and deductible games that show up across Dallas.