6773 Tiger Walk | Littleton, CO 80124 | Phone: 303-335-0007 | Kiaya@RenewableRestoration.

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Homeowner's Guide to the Roofing Insurance Process

READING THE GUIDE MAY ONLY TAKE YOU 10 MIN

HOWEVER, IT WILL EDUCATE AND SAVE YOU, THE HEADACHES OF ALL THE INSURANCE COMPLEXITIES RELATED TO YOUR HAIL DAMAGED ROOF! DID YOU KNOW? A hailstorm is a great opportunity to have your roof replaced compliments of your insurance company! A new roof will increase the value of your house tremendously. By installing class IV Impact-resistant shingles you can even reduce your insurance premium 27%-32%. That can save you hundreds of dollars per year! Leaks usually do not appear after a hailstorm. Water finds its way through the damaged shingles to reach the fractured decking. The water then absorbs into the structure of the roof like a sponge and deteriorates the integrity of the roof. This process some times takes months or even years for the homeowner to discover, and by then it is too late! Most insurance companies require that a claim must be made within the first 6 to 12 months of the initial damage. An untrained and inexperienced eye easily overlooks hail damage. Even though the shingles may look undamaged from a distance (from your yard for example), a closer observation reveals deep pit holes. The damage to a roof is not limited to the surface of the shingles; the backing (matting) under the shingles is also affected. The impact of hailstones cracks the matting and many times the decking, which can lead to major leaks and damage to the property. Insurance companys send in adjusters from outside Colorado, who do not always have extensive experience with hail damage in our local area. Renewable Restoration & Roofing should be there with the adjuster during the appointment to prevent a low damage estimate. The adjuster should also be informed of any hail damage to other areas of the property. Many times adjusters are paid per claim resulting in a rushed assessment, which undervalues your roof. Not only does Renewable Restoration & Roofing prevent this from happening, but we also help with determining the extent of the damage and with verifying the accuracy of the adjusters assessment. Collecting free estimates from roofing contractors benefits the insurance company, not you! A contractors estimate that is lower than the insurance adjusters estimate will decrease the amount of depreciation paid to you.

6773 Tiger Walk | Littleton, CO 80124 | Phone: 303-335-0007 | Kiaya@RenewableRestoration.com

Definitions: Insurance Claim: Homeowner notifies their insurance company about potential hail damage. Adjuster: The insurance company representative who examines and determines the damage of the roof. Estimate: A written assessment determined by insurance company or roofer to replace damaged items. Deductible: The portion of the policy that homeowner is responsible to pay. Depreciation: The decrease in the roof value from the original construction cost. Each year the roof decreases in value simply because of age and wear. ACV-Actual: The portion of money after the deducible and depreciation is subtracted Cost Value Generally this is the first check issued by insurance company. RCV-Replacement: The total amount to be paid by insurance company upon completion of the job. It is the Cost Value total calculation of the actual cost value plus the Recoverable Depreciation. Example: Estimate = $10,000 Deducible = $1,000 Insurance Check = $9,000 Depreciation = $3,000 First Payment = $6,000 Explanation of Example: After you file a hail damage insurance claim, an adjuster will come to your house to inspect for damage. If the damage is confirmed, he will measure the dimensions of your roof and present an estimate of damages. In this example, the estimated damage is $10,000. The total insurance payment equals the estimated damage ($10,000) minus the deducible ($1,000). The insurance payment for this example, then, would be $9,000. This amount is paid in two steps.

6773 Tiger Walk | Littleton, CO 80124 | Phone: 303-335-0007 | Kiaya@RenewableRestoration.com

The depreciation of your roof is held back by the insurance company until the installation of your new roof has been completed. The insurance company pays $6,000 for the first payment. Only after a new roof has been constructed, is the remaining $3,000 paid. The Improper Way to Work With The Deductible: Many people believe they can cover the cost of their deducible by hiring a less expensive roofing company; however, this benefits the insurance company, not the homeowner! For Example: Your total claim is $10,000 and your deducible is $1,000. You might hire a contractor for $9,000 instead of $10,000 trying to side step your deducible. Your insurance company has already issued you a check for $6,000 (ACV). After the roof job is completed, you forward your roofers invoice of $9,000 to the insurance company in order to receive your remaining $3,000 (RCV) depreciation. However, the insurance company will reply that the damage estimation of $10,000 was not accurate. Since you were able to replace your roof for $9,000, their estimate was apparently too high. They are only responsible for the actual cost minus your deducible. Based on your roofers invoice, the insurance company will lower the insurance claim to $9000. Your deducible will sill be $1,000, which means you will only receive $8,000 total. Since they would have already sent you $6,000 in the first payment, your held-back depreciation will be reduced to $2,000 instead of the original $3,000. The Proper Way to Work With Deductibles: Insurance premiums are collectively based on deductibles being paid by policy holders. Just like an auto accident claim.

6773 Tiger Walk | Littleton, CO 80124 | Phone: 303-335-0007 | Kiaya@RenewableRestoration.com

----Rebates and Kick Backs are NOT Legal! ---- However, there are instances where roofing companies pay a reasonable amount for advertising with assign in your yard or paying you bonuses for customers who are referred by you. These fees are not related to your deducible and cannot be excessive. This is the correct way to save! How to Get The Claim You Deserve Hail does not just damage the roof of your house; it can also damage the roof of your garage, barn, shed, doghouse, etc. It can also damage other assets on your property besides shingles, like siding, windows, screens, AC units, tools, etc. Old Insurance Model verses New Insurance Model In the past, insurance companies would work with so called estimates to determine the damage. It is not the roofing construction company that determines the damage; only the insurance can depreciation damage. Therefore, finding a cheap contractor only serves to reduce your held back depreciation money and leave you with a lower quality roof. The key is to get the highest quality roof by the highest quality contractor for the amount allocated by the insurance company.