When faced with a storm-damaged roof, dealing with insurance can add even more stress to an already challenging situation. However, homeowners insurance is designed to provide financial support in such circumstances. While insurance will cover the cost of a new roof in the event of storm damage, you will still have to pay the deductible. But what if a roofing company wants to pay my deductible?
Some roofing companies may offer to pay the deductible on your behalf, but is it wise to accept such an offer? In this article, we will explore whether you should let a roofing company pay your deductible, the reasons behind such offers, what else you need to consider aside from the deductible, and what to do if insurance won’t cover the full roof replacement cost.
Table of Contents
– A Roofing Company Wants to Pay My Deductible: What Should I Do?
– Why Would a Roofing Company Want to Pay My Deductible?
– What Else Do You Pay Besides Your Deductible When Your Roof Damage Claim Is Approved?
– Actual Cash Value (ACV) Policy
– Replacement Cost Value (RCV) Policy
– What Do You Do If Insurance Won’t Cover the Full Cost of Your New Roof?
– How to Avoid Roof Damage Insurance Scams?
– Roofing Company Wants to Pay My Deductible: Conclusion
A Roofing Company Wants to Pay My Deductible: What Should I Do?
No matter what a roofing company tells you, it is crucial that you never let them pay your deductible. Offering to pay a homeowner’s deductible is a common scam in the roofing industry, and is also illegal and considered insurance fraud. While some homeowners may be enticed by the idea of avoiding their deductible or getting a seemingly great deal, it is important to understand the implications.
By accepting this offer, you risk hiring a roofing company that operates dishonestly, and their workmanship is likely to be poor. Moreover, by participating in insurance fraud, you may have no recourse if the quality of the work is unsatisfactory. It is simply not worth it to commit insurance fraud for a potentially subpar roof. Therefore, it is strongly advised to never listen to roofing companies that offer to pay your deductible.
Why Would a Roofing Company Want to Pay My Deductible?
The primary reason a roofing company wants to pay my deductible is to win business. These companies often position themselves as the lowest-priced option in the area, making them an attractive choice for homeowners seeking cost savings. By offering to cover the deductible, they aim to sweeten the deal and make their offer even more appealing.
However, it is essential to recognize that this is where homeowners are often taken advantage of. What these companies fail to disclose is that they typically use the lowest-quality materials and labor, resulting in a roof that is likely to have problems in the future. Additionally, they may not provide any warranty or stand behind their work. Opting for the cheapest price might seem appealing, but it can lead to long-term issues and regrets.
What Else Do You Pay Besides Your Deductible When Your Roof Damage Claim Is Approved?
The additional costs you may incur when getting an insurance roof replacement depend on the type of insurance policy you have and the amount the insurance company ultimately provides. There are two types of policies to consider:
Actual Cash Value (ACV) Policy
With an Actual Cash Value policy, you receive a payout that reflects the depreciated value of your roof at the time of the claim. This amount may not be sufficient to cover the cost of a full roof replacement. In this scenario, you will need to use the depreciated payout and pay the remaining expenses out-of-pocket.
It is important to resist the temptation to find a low-priced roof that aligns with the ACV policy payout, as cheaper prices often correspond to lower quality materials and labor. Investing in a cheap roof now may result in higher costs in the long run.
Replacement Cost Value (RCV) Policy
In contrast, a Replacement Cost Value policy entitles you to a payment that covers the full cost of replacing your roof with a new one. The insurance company is supposed to provide enough funds to cover the entire cost. Similar to an ACV policy, you will receive a check for the actual cost value of your roof, and the insurance company will withhold the remaining amount as recoverable depreciation.
After completing the roof replacement and providing evidence, such as photos, that the work was done according to the claim, the insurance company will release the second check to cover the remaining expenses. However, it is important to note that the insurance company will only pay for restoring your roof to its original condition. If you want to upgrade certain aspects, such as upgrading from 3-tab asphalt shingles to architectural asphalt shingles, you will need to cover the additional cost out-of-pocket.
What Do You Do If Insurance Won’t Cover the Full Cost of Your New Roof?
While an RCV policy is intended to cover the full cost of a roof replacement, it is possible that the initial estimate provided by the insurance company may be lower than the estimate you receive from a roofing contractor. This discrepancy often arises because insurance companies may omit crucial line items or underestimate labor costs. If you find yourself in this situation, you have a few options:
- Supplement the Missing Items: You can supplement the items missing from the insurance claim. This will require some effort on your part to ensure that each line item is properly covered. A reputable roofing contractor can assist you by providing tools and guidance to help you navigate this process. It is worth noting that insurance companies tend to pay closer attention to policyholders than roofing companies, so your involvement is crucial.
- Cover the Difference Out-of-Pocket: Another option is to use the insurance money to cover as much of the cost as possible and make up the difference with your own funds. While the insurance payout may not cover the entire amount, this approach can still provide significant financial relief.
- Consider Financing: If necessary, you can explore financing options to cover the remaining costs of your roof replacement. This approach allows you to utilize the insurance money as you see fit while making manageable monthly payments. It is important to bear in mind that regardless of the chosen option, you must still pay the full deductible. Therefore, select the option that best suits your specific situation and budget.
How to Avoid Roof Damage Insurance Scams?
Hiring a reputable roofing contractor with experience in insurance claims is an important first step in the roof replacement process
After understanding the importance of paying your deductible, the implications of accepting offers to pay it on your behalf, and the factors to consider when insurance coverage falls short, you may be wondering how to avoid falling victim to roof damage insurance scams altogether. Fortunately, there are steps you can take to protect yourself:
- Do Your Research: Before engaging with any roofing company, conduct thorough research. Look for established companies with a good reputation and positive customer reviews. Verify their licenses, insurance, and certifications to ensure they are qualified to perform the work.
- Get Multiple Quotes: Obtain quotes from different roofing companies to compare prices and services. Be cautious of significantly lower-priced options, as they may indicate subpar quality.
- Ask for References: Request references from past customers and follow up with them to gauge their satisfaction with the company’s work and professionalism.
- Read the Fine Print: Carefully review contracts, warranties, and guarantees provided by the roofing company. Ensure you understand the terms and conditions before signing any agreements.
- Communicate with Your Insurance Company: Maintain open communication with your insurance company throughout the process. Seek clarification on any discrepancies or concerns regarding the coverage and estimates.
- Consult with a Public Adjuster: If you encounter difficulties or disputes with your insurance company, consider consulting with a public adjuster. These professionals specialize in insurance claims and can assist you in maximizing your claim’s value.
By following these tips, you can minimize the risk of falling victim to roof damage insurance scams and ensure that you receive quality service and fair compensation for your roofing needs.
Roofing Company Wants to Pay My Deductible: Conclusion
When filing an insurance claim, it’s important to understand the policy you have, and to pay your deductible
While it may be tempting to accept offers from roofing companies to pay your deductible, it is crucial to understand the potential consequences and risks associated with such arrangements. Committing insurance fraud is illegal and can result in poor workmanship and no recourse if issues arise. Instead, focus on selecting a reputable roofing company that offers fair pricing and superior craftsmanship.
Understand the terms of your insurance policy, including the difference between ACV and RCV policies, and be prepared to cover any additional costs out-of-pocket. By arming yourself with knowledge and taking the necessary precautions, you can navigate the process of roof damage insurance claims confidently and avoid falling victim to scams in the roofing industry.
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Elite Exteriors is proud to be insurance claims specialists, and works hard on the homeowners behalf, guiding them through the insurance claims process, and taking the stress out of making a claim. We are happy to answer any insurance questions you may have, and to bring your roof back to its pre-storm condition.
Elite Exteriors is the Southeast’s premier residential and commercial resource for unparalleled service, superior craftsmanship, and incomparable quality. And it’s all backed by an unprecedented lifetime labor and materials warranty! Give us a call today at 470-350-3024 for a NO-COST initial consultation and inspection, or fill out our online form for more information!