how to read your insurance claim
If you’re filing your first roof insurance claim, you may be confused by your claim summary. At Roof Restoration, we get a lot of questions from customers about their insurance documentation. To clarify, we’re going to share an example of an insurance claim summary and break down each line item.
Reading: How to read insurance claim estimate
A claim summary is an insurance adjuster’s estimate of the expected cost to repair or replace damage to your roof.
Line Item 1: This is your line item total for materials and labor. this is the total of all line items on the previous pages added together before taxes.
Line Item 2: Line number two is the material sales tax. that’s where you’re adding your sales tax for your municipality in your state.
Line Item 3: The number three is the important number we want you to pay close attention to. it is usually in bold and is usually the largest number on this list. that number is the replacement cost value. To summarize, replacement cost value is the value or cost to rebuild your roof to a pre-loss condition and fix the entire roof.
Unless you have an initial contract or contingency signed between you and your contractor, insurance companies like to depreciate the roof.
Depreciation is based on the age of the roof. So, for example, if your roof is 10 years old, it will depreciate as much depending on the type of shingle it has.
We also get a lot of questions about replacement cost value and depreciation. clients will often ask “will you get your depreciation back?”
if you jump to line number eight, it says total recoverable depreciation and that number is the same as line number four, which is depreciation. so that the money is withdrawn at the beginning, you can get it back at the end of the work.
line number 4: this is the calculated depreciation of your roof.
Line Number 5 – This is the actual cash value. cash value is replacement cost value
Line Number Six: This is your deductible, and your deductible is something you’ve agreed to pay in the event of a claim or loss. some people have higher deductibles, while others have low deductibles, but this is what you are legally required to pay.
line number seven: this is the net claim. in this case, that net claim is what was the first check from the insurance company to the homeowner to start the job.
line number eight and nine: line items eight and nine are items you can collect after the job is done. once the job is done we write what is called a coc or certificate of completion and send our bill and a certificate of completion to the insurance company with line numbers eight and nine on our bill. you will receive the depreciation back after we certify that the work has been done and it is okay to release that depreciation.
The second page of the insurance summary is the code updates page. in certain municipalities also in the insurance companies, if in your policy it is required that you have code update coverage, the insurance companies will also pay for that. In the Memphis area, common upgrades are adding drip edge to the eaves and ledges of the house, adding an ice and water shield in the valleys, and sometimes upgrading the deck if you have a lot of gaps. These items will upgrade your roof by code.
We hope this summary clarifies common questions we receive from customers about their home insurance claims. At Roof Restoration we pride ourselves on being well versed in the insurance claims side of roof restoration.
If you suspect your roof is damaged, call us at 901-854-3402 for a free inspection. we are your high quality, fair priced roofer for the memphis area here to serve you.