Yes, we can help! When you call our office, be sure to let us know it is an insurance claim so we can get you started in the right direction. We have years of experience taking care of our customers and working with their insurance companies. If you have any questions, don’t hesitate to ask. We understand how confusing the process can be.
It helps us to agree on the scope of the work or damage to your property. It expedites the process, saves all parties involved a great amount of time and money. Overall, it makes the process much more convenient for everyone.
Depreciation is an insurance term that is used in two different ways depending upon the type of policy that you have. If you have a RCV (replacement cost value) policy, the depreciation is merely held back until you can prove that you have incurred the cost of completing the repairs. Once the work is completed, you will receive the remaining money.
If you have an ACV (actual cash value) policy, the depreciation means that besides the deductible, you will pay a prorated portion of the repairs above and beyond your deductible amount. For example, if you have a 30-year roof that is 10 years old, your insurance company will deduct 1/3 of the value of the roof plus your deductible from the actual estimate.
Insurance companies have different levels of RCV policies. They typically have Good, Better and Best. They are trying to give maximum benefits with your budget in mind. A good RCV policy will generally cover the roof at Full Replacement Cost, but may prorate your fence that is 10 years old with a life expectancy of 20 years. They will then subtract half of the value of the fence and call it “Non Recoverable Depreciation”.
Yes, you can, but it is very dangerous! Your insurance company will allow you to keep the ACV portion of your settlement and not make the repairs but your mortgage company may not. Typically, if you do not make the repairs…YOU WILL NOT BE INSURED!
So…whatever you choose NOT TO FIX, will NOT be insured. If you choose to not fix the roof and you begin to have leaks, or another storm hits, your insurance company will not pay for the roof again. ALSO, they will not pay for any damage to the property caused by leaks that should have been fixed. All the while, you will still be paying full premiums!
Often times, especially when a storm has recently hit, this is a way of stalling so that the insurance companies have time to get an adjuster out to your home. This is also a way to try and save them money. All reputable companies pay close to the same thing for labor and materials. If one of them comes in substantially cheaper than the others, they are most likely cutting corners somewhere. This is a time for you to BEWARE! We are talking about the covering of your home. This is not a place to cut corners with less than quality materials or workmanship!
Most insurance companies include your mortgage company on the first check. Every mortgage company has different procedures for releasing funds. You can check with your mortgage company before the job starts to find out what information they require to obtain an endorsement. We encourage you to obtain the endorsement locally if possible. If the check gets lost in the mail, it can be a real nightmare having the funds re-issued. If local endorsement is not possible, we suggest sending it overnight so it can be traced.