Understanding Your Insurance Claim
Your Home Got Hammered With Hail. What to do next?
Call Lifetime! 303-335-6097
The first step is to get us out there to help you with your insurance claim. We will walk you through how to file a hail damage claim. Make sure you get your claim number!
Your insurance company will schedule an adjuster to come to your home to provide an insurance scope for the cost of repairs. We will be on site during this install to ensure the insurance company is fair to you.
To fully understand your claim, you need to be aware of ACV, RCV, Depreciation, & Deductible.
ACV (Actual Cash Value)
Synonymous with “fair market value.” This is what your roof is worth right now. Your depreciation factor will determine what this value is.
RCV (Replacement Cost Value)
This is what insurance is going to pay to replace your roof with new products. This price is what it costs now to replace your roof.
This number is calculated by the age and condition of your roof. It is usually the difference between ACV & RCV. Your insurance company will usually cut you a check for the ACV and keep the depreciation until the work is complete.
ACV and Depreciation Checks
Depending on your policy, sometimes you may have Non-Recoverable depreciation. In this case, you may not be able to receive a backend payment and you can incur significant out-of-pocket costs.
Your Lifetime Roofing Expert will help identify and explain this. Your insurance carrier will often issue payments with you AND your mortgage company listed on the check. In order to receive these funds, both you AND your mortgage company need to sign the check.
This usually requires that the check be sent away to your mortgage carrier and then back to you before it can be deposited. This process can be rather lengthy, so we recommend that you take care of that as soon as possible. The sooner you receive the money, the sooner you can get your new roof!
Often, additional work is required to ensure that your home is up to code and that no shortcuts are taken in the installation of your new roof.
This additional work is often not included in the Original Insurance Estimate. Lifetime works directly with your insurance to ensure that these additional costs are covered at no cost to you!
Sit Back and Relax
Lifetime will handle all the back and forth dealing with your insurance company, permits, inspections, and invoicing. And you can rest assured that you are dealing with a reputable and trustworthy local company with over a decade of experience here in Colorado.
Step by Step Process
Step One Step Two Step Three Step Four Step Five Step 6Contact Your Mortgage Company
If your mortgage company is included as a payee on the check, get in contact with them as soon as possible to get the funds released. All mortgage companies have different policies regarding insurance money, so you may have to jump through some hoops to get the funds released. We’ve been doing this a long time, so we are happy to help you through. If you are having trouble, just ask and we can give you advise based on what we have seen with our own homes and our thousands of customers.
InspectionLifetime will inspect the roof and build a quote for your insurance company to include any missed items or code upgrades required by the municipality you reside in (this is called a supplement). Sometimes the adjustor may miss a skylight, a few vents, or a shingle type. No worries! We will submit this information for approval to your insurance company. We won’t start any work until these items are approved, so you never have to worry about covering the costs. As for code upgrades. These are items like: ice and water shield, starter strip, double layer felt, sheathing replacement, etc. (Don’t know what that stuff is? Neither did we. Check THIS PAGE, to read about the Lifetime Roofing System). We stay up to date on the ever-changing codes in your city to ensure we build it right. We will submit these code upgrade requirements to your insurance company to ensure they pay for what your city requires. Again, if your policy covers code-upgrades (some don’t but we will learn that from your insurance company prior to starting work) you will have no surprise out-of-pocket costs. Whatever is approved will be paid to the customer as a Supplement Check. This money will be then paid to Lifetime upon completion of work. We will send you all documents from the insurance company outlining what was approved and how we are charging. Again, no surprise out-of-pocket expenses.OrderingWe will order your product and have it delivered to your house a few days prior to install. We prefer to “Roof Drop” the materials but we can leave them wherever you say.ProductionLifetime will send a crew out with a project manager to start the job. The crew will usually complete the average home in 1 day. Your bigger homes may take 2 days or longer. The crew will clean up everything and run a large magnet over your property to pick up any stray nails. Replacing a roof makes a big mess but we do our best to leave it better than we found it.InspectionThe project manager will come back out within about 48 hours to inspection the roof to ensure quality install and clean up anything missed. We aren’t perfect, but we do our best to get it right the first time. Anything we notice is incorrect we will fix as soon as possible.Final InspectionYour project manager will call a final inspection from your city. We do require final payment upon completion of work because sometimes these inspectors take months to get out to your property
SAMPLE INSURANCE CLAIM PAYMENT STRUCTURE
Here is a generic example of a roofing project payment structure:
- $15,000 RCV to Replace a roof.$7,000 Depreciation based on age and condition of roof.
- $8,000 ACV
- $1,000 Deductible
- $7,000 Initial payment to customer
- Customer would then pay Lifetime the $7,000 deposit to cover materials and labor.
- After completion of work, customer will submit final invoice from Lifetime of $15,000 to their insurance company. The insurance company will then send customer a check for the deprecation of $7,000.
- Customer has now received $14,000 total.
- Customer will now pay Lifetime the final $7,000 deprecation check, plus the $1,000 decidable for a total of $15,000 RCV.The deductible is the only out-of-pocket cost to the homeowner.