Common Questions & Answers
Q. Why did the insurance company withhold depreciation?
A. There are two reasons that the insurance companies hold some money back. The first reason is to make sure that you get the work done. Past experience has shown them that, if they give the customer all the money up front, many people end up spending it on something else. The second reason is that they wish to make sure that you pay your full deductible. The insurance companies reason that, if you are given all the money to begin with, many people would naturally try to find a contractor who would perform the job for the dollar amount in hand. By holding a retainage amount, they can adjust the amount of the final payout based on the roofing contractor’s invoice, thus assuring that the customer does pay the deductible.
Q. How can I avoid paying the deductible?
A. Legally, you can’t. Of course, a roofer in collusion with a homeowner can submit falsified invoices. However, doing so is insurance fraud. Please don’t ask us to do this.
Q. On my paperwork, it looks like my insurance company has already deducted my deductible from the check they sent me?
A. When most people look at their insurance paperwork they are confused, because they think the insurance company deducted their deductible from the money the insurance company has sent them. However, the deductible is the amount that the homeowner is responsible for paying directly to the contractor. The insurance company subtracts the home owners deductible amount on the paperwork from the total amount the insurance company allows for the claim, since the homeowner will pay their deductible directly to the contractor. The balance after subtracting what the homeowner will pay directly to the contractor as a deductible, is the total amount the insurance company will actually pay for the claim.
Q. If I file a claim, will my premiums go up?
A.This is probably the most often asked question about insurance claims. We have researched this extensively and frankly, there doesn’t seem to be a 100% definitive answer. The majority of opinions we’ve read and heard about strongly suggest that filing insurance claims resulting from an “Act of God” (hail, wind, tornado, lightning, etc.) will not cause that individual policy holder’s premiums to increase. However, these “Acts of God” usually are not isolated and often are wide-spread in an area. If you live in an area where there were many claims due to storm events, it is likely everyone in that area will see a rate increase regardless of whether they file a claim (or not). This is why the best approach is to have a competent, qualified and reputable Contractor perform a thorough inspection first before making a decision about filing an insurance claim.
Q. How do I know if I have storm damage? My roof isn’t leaking.
A. It’s best to have your roof inspected by a state licensed roofing contractor to determine if you need to file an insurance claim and have an insurance adjuster assess the total amount of damage incurred. Storm damage can be tricky to spot, and insurance companies have a set amount of time after an event that you must turn in damage for full coverage.
Q. Can you refer me to other professionals to help my claim?
A. Rarely we will recommend bringing on an independent 3rd party to aid in your claim. Listed below are the most common experts we would ask you to obtain. We know that most likely you will need a referral to obtain these experts. Please reach out to your Construction Advocate for a list.
PUBLIC ADJUSTER - This is an adjuster licensed by the state that will represent you to the insurance company. Normally we only recommend hiring this professional if coverage has been unduly denied, or to address policy concerns that we as a general contractor are not allowed to discuss by state law. We recommend a public adjuster be hired on less than 2% of our jobs.
THIRD PARTY DAMAGE ASSESSOR - Sadly, Indiana does not require insurance staff adjusters to be licensed. *SOURCE And many companies take advantage of hiring under trained new adjusters who deny coverage, without just cause. If we believe this to be the case, we may recommend bringing in a state licensed adjuster to work as a third party assessor to prove covered damage.
ENGINEER - Much like the staff adjuster, when the insurance company hires an engineer he/she works for the insurance company. Past experience has proven their reports to be biased. This makes sense after all the insurance company is footing their cost. There would be no reason for the insurance company to spend the extra expense hiring an engineer to PROVE a covered loss... so common sense would lead any competent individual to conclude that they want them to DENY damage. We have combated biased engineering reports with fair engineers in the past.
APPRAISER - This is an independent 3rd party used to determine the exact cost of replacement when we can not come to an agreement with the insurance company's adjuster. This professional is used a little more often, especially with smaller insurance companies that try and short change customers. Please watch the video below provided by Steve Patrick with LP Loss Consulting.
A. There are two reasons that the insurance companies hold some money back. The first reason is to make sure that you get the work done. Past experience has shown them that, if they give the customer all the money up front, many people end up spending it on something else. The second reason is that they wish to make sure that you pay your full deductible. The insurance companies reason that, if you are given all the money to begin with, many people would naturally try to find a contractor who would perform the job for the dollar amount in hand. By holding a retainage amount, they can adjust the amount of the final payout based on the roofing contractor’s invoice, thus assuring that the customer does pay the deductible.
Q. How can I avoid paying the deductible?
A. Legally, you can’t. Of course, a roofer in collusion with a homeowner can submit falsified invoices. However, doing so is insurance fraud. Please don’t ask us to do this.
Q. On my paperwork, it looks like my insurance company has already deducted my deductible from the check they sent me?
A. When most people look at their insurance paperwork they are confused, because they think the insurance company deducted their deductible from the money the insurance company has sent them. However, the deductible is the amount that the homeowner is responsible for paying directly to the contractor. The insurance company subtracts the home owners deductible amount on the paperwork from the total amount the insurance company allows for the claim, since the homeowner will pay their deductible directly to the contractor. The balance after subtracting what the homeowner will pay directly to the contractor as a deductible, is the total amount the insurance company will actually pay for the claim.
Q. If I file a claim, will my premiums go up?
A.This is probably the most often asked question about insurance claims. We have researched this extensively and frankly, there doesn’t seem to be a 100% definitive answer. The majority of opinions we’ve read and heard about strongly suggest that filing insurance claims resulting from an “Act of God” (hail, wind, tornado, lightning, etc.) will not cause that individual policy holder’s premiums to increase. However, these “Acts of God” usually are not isolated and often are wide-spread in an area. If you live in an area where there were many claims due to storm events, it is likely everyone in that area will see a rate increase regardless of whether they file a claim (or not). This is why the best approach is to have a competent, qualified and reputable Contractor perform a thorough inspection first before making a decision about filing an insurance claim.
Q. How do I know if I have storm damage? My roof isn’t leaking.
A. It’s best to have your roof inspected by a state licensed roofing contractor to determine if you need to file an insurance claim and have an insurance adjuster assess the total amount of damage incurred. Storm damage can be tricky to spot, and insurance companies have a set amount of time after an event that you must turn in damage for full coverage.
Q. Can you refer me to other professionals to help my claim?
A. Rarely we will recommend bringing on an independent 3rd party to aid in your claim. Listed below are the most common experts we would ask you to obtain. We know that most likely you will need a referral to obtain these experts. Please reach out to your Construction Advocate for a list.
PUBLIC ADJUSTER - This is an adjuster licensed by the state that will represent you to the insurance company. Normally we only recommend hiring this professional if coverage has been unduly denied, or to address policy concerns that we as a general contractor are not allowed to discuss by state law. We recommend a public adjuster be hired on less than 2% of our jobs.
THIRD PARTY DAMAGE ASSESSOR - Sadly, Indiana does not require insurance staff adjusters to be licensed. *SOURCE And many companies take advantage of hiring under trained new adjusters who deny coverage, without just cause. If we believe this to be the case, we may recommend bringing in a state licensed adjuster to work as a third party assessor to prove covered damage.
ENGINEER - Much like the staff adjuster, when the insurance company hires an engineer he/she works for the insurance company. Past experience has proven their reports to be biased. This makes sense after all the insurance company is footing their cost. There would be no reason for the insurance company to spend the extra expense hiring an engineer to PROVE a covered loss... so common sense would lead any competent individual to conclude that they want them to DENY damage. We have combated biased engineering reports with fair engineers in the past.
APPRAISER - This is an independent 3rd party used to determine the exact cost of replacement when we can not come to an agreement with the insurance company's adjuster. This professional is used a little more often, especially with smaller insurance companies that try and short change customers. Please watch the video below provided by Steve Patrick with LP Loss Consulting.
