FAQ – Roof Replacement with Insurance
Why is my check less than what my roof will cost?
There are two main deductions from an adjusters estimate of what your roof will cost. The first is your deductible. The second is for “Betterment or Depreciation”.
What is Betterment or Depreciation, RCV, and ACV?
RCV stands for Replacement Cost Value. RCV is the current retail cost to replace your damaged items. ACV is the Actual Cost Value. For 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 Then RCV would be 10,000 and the ACV would be $5,000 (10/20th of $10,000). The difference between the two, $5,000, is the depreciation which is additional funds you will 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 this process. It is common that your contractor and adjuster will need to reconcile a few items. You should never be concerned that your estimate from BH Houston Roofing is different than your adjuster’s. The main cost factor in a shingle is asphalt which is petroleum. With the price of oil going crazy, shingle prices have changed almost monthly this year.
Bottom line, what is the cost to the homeowner?
It is always your deductible plus upgrades if any.
I have shopped around and found a contractor that will do the job for less than what the adjuster has calculated. Can I use this savings to reduce my deductible?
No. Your deductible always comes first. You only save your insurance company money by choosing a cheap contractor. When you submit an invoice that is lower than what the adjuster calculated, this will lower the amount of depreciation you will later be paid.
Some contractors have said they will “cover my deductible”. How do they do this and is it proper?
It is very improper to cover a deductible. A reputable contractor will not do this. Read more about this on our deductible page.
“This new law will help further protect consumers,” said Texas Insurance Commissioner Kent Sullivan. “Roofers who waive deductibles are cutting corners. Take your business elsewhere.”
After a major storm, contractors – including some scam artists – are quick to arrive on the scene. This leads to shoddy repairs, fake contracts, and other problems. The Texas Department of Insurance created a special fraud unit that meets with local officials after a disaster and explains steps they can take to protect residents from contractor scams.
One selling point bad contractors often use is offering to waive or absorb the homeowner’s deductible. The contractor then cuts corners, uses lower quality products, or inflates the bill sent to the insurance company to cover the difference.
It is illegal for contractors or roofers to offer to waive a deductible or promise a rebate for all or part of a deductible. Under the new law effective September 1, violators could get up to a $2,000 fine and up to six months in jail.
If a contractor offers to waive a deductible, report it to the Texas Attorney General’s Consumer Protection Hotline at 1-800-621-0508.
Tips to avoid contractor fraud
- Get written estimates on company letterhead with clear contact information.
- Get more than one bid to gauge which ones are too high or too good to be true.
- Check references and phone numbers.
- Beware of those who only have out-of-town references or solicit door to door.
- Don’t pay in full up front and don’t make a final payment until the job is done.
- Never sign a contract with blanks on it.
Is a sign allowance or referral fee given to me proper?
It can be, but generally, it is just a disguise for “covering a deductible”. To be legitimate, this fee must be the same if you buy a roof or not. It also would need to be reported as taxable income.
How long does it take to get the additional funds once I submit an invoice to my insurance carrier?
Not long. By law, they must release these funds in a few days.
Hail Damaged Roofs Houston
If you’re in the Houston area you may have experienced the exciting Gulf Coast Weather with strong winds and damaging hail to your roof shingles. Sometimes it can be difficult to notice if you have significant hail damage to your roof. Contact us, to get a free estimate and schedule an appointment for an inspection of your hail damaged roof. We strive to provide remarkable customer care and accurate quotes to make it easy to file with your insurance company. A hail damaged roof is nothing to ignore. It can cause serious problems to the interior of the home if you do not take the steps to get it inspected and repaired.
BH Houston Roofing will take care of all your wind or hail damaged roofing needs in the Gulf Coast Region. We proudly provide roof inspection in Houston and the following surrounding areas: Bellaire, Cypress, Galleria, Houston, Katy, River Oaks, Sugar Land, The Woodlands, Upper Kirby, West University.