Understanding the Roof Insurance Claim Process

Roof insurance claims can seem complicated, but the basic process is relatively straightforward. Understanding how the claim is paid—and what your responsibilities are as a homeowner—can help you avoid common and costly misunderstandings.

The Insurance Claim Process

The process typically begins by identifying storm damage and filing a claim. You do not have to select a contractor or include one when you initially file. However, involving a qualified contractor early can be helpful because they understand insurance-specific language and can assist with the claims process. Having an expert on your side can provide valuable support from start to finish.

The insurance company will then send an adjuster to inspect the property and prepare an initial estimate, or scope of loss, outlining the damage, covered work, and estimated replacement cost. It typically takes between 3 and 10 business days to hear from the carrier about whether the claim has been approved.

If the claim is approved in part or in full, the carrier will typically send a settlement or approval letter identifying the approved scope of work, along with the first check—the Actual Cash Value (ACV) payment.

That initial estimate is not always the final scope. Necessary roofing components, code requirements, quantities, or other legitimate costs may be missing. Your contractor should review the insurance estimate, identify any legitimate items that were omitted, document those items, and submit a supplement to the insurance company for review and approval. The contractor—not the homeowner—is responsible for managing this supplement process and communicating with the carrier regarding the additional work being requested.

However, your contractor cannot effectively advocate for you without the claim documents and scope of loss. You should provide your contractor with the insurance estimate, approval letter, and any other claim-related documents you receive. Simply put, if the contractor has not reviewed the insurance estimate, they cannot determine whether all necessary work has been included or request coverage for legitimate items the carrier may have overlooked.

Once the scope is finalized and the roof is replaced, the contractor will typically provide the insurance company with a certificate of completion, final invoice, photographs, or other required documentation. The carrier can then release the second check—the recoverable depreciation payment—and the claim can be completed.

Understanding ACV and Depreciation

Most replacement-cost claims are paid in two stages.

The first check is the Actual Cash Value (ACV) payment. The insurance company calculates the replacement cost, subtracts your deductible, and withholds a portion of the claim as depreciation.

The second check is the recoverable depreciation payment, which is generally released after the work is completed and the final cost is documented.

This is where an important misunderstanding often occurs. If the insurance company approves $20,000 for your roof and you find someone willing to complete the same project for $16,000, you generally do not get to keep the $4,000 difference. The insurance company can adjust the amount of your second check based on the lower amount you actually spent. The money you thought you were saving may instead be money the insurance company keeps.

As a result, you may spend considerable time searching for a cheaper contractor, save the insurance company money, and potentially receive a lower-quality roofing system—without putting those savings in your own pocket, but rather the pockets of the insurance company.

Frequent Misunderstandings and Mistakes

“I need to get several estimates for my insurance company.”

Homeowners often assume they need to shop around for the lowest bid. Unless your policy or carrier specifically requires multiple estimates, your primary responsibility is not to find the cheapest contractor for the insurance company. Your responsibilities include paying your deductible and complying with the terms of your policy.

“If I find a cheaper contractor, I can keep the difference.”

On a typical replacement-cost claim, that usually isn’t how it works. The carrier can base the recoverable depreciation payment on the amount actually spent. A lower final cost can therefore mean a lower final insurance payment—not extra money in your pocket.

Thinking the insurance company’s first estimate includes everything.

Initial estimates frequently require corrections or additions. That’s why your contractor should review the scope, identify missing or incomplete items, and properly document and submit legitimate supplements on your behalf.

Not knowing the purpose of an insurance claim

An insurance claim should restore your property to its pre-loss condition according to the coverage provided by your policy. Choosing a contractor primarily because they are willing to complete the project for less can mean compromising on materials, installation practices, warranties, or other aspects of the roofing system without creating any savings for you. In general, a lower bid will have no bearing on creating a better value for you as the homeowner.

Focus on Being Properly Indemnified

Ultimately, homeowners should ask themselves what they are trying to accomplish: save the insurance company money, or make sure they are properly and fully indemnified for their covered loss and receive the best roof possible within what their policy provides?

Your deductible is your contribution toward a covered loss. You generally do not benefit from doing additional legwork simply to reduce the insurer’s ultimate cost. Instead, choose a qualified contractor who will properly restore your property, review the insurance estimate, manage the supplement process, document the complete scope of work, and help ensure the carrier has the information necessary to pay everything legitimately owed under your policy.

Choose the Company You Want to Work With

The purpose of evaluating storm restoration contractors is to choose the company you trust to properly manage and complete your project—not to collect estimates and select the cheapest price for the benefit of the insurance company. The right contractor should have the experience, communication, workmanship, materials, and process necessary to help you become properly and fully indemnified according to what your policy provides.

Treat your evaluation of storm restoration contractors like an interview: determine whether the contractor and company are the right fit for you, rather than gathering estimates to find the lowest price. Shopping solely for the lowest bid can save the insurance company money while costing you time, energy, and potentially the opportunity to receive the full coverage available under your policy. Unless your policy or carrier specifically requires multiple estimates, you are generally not obligated to perform that work on the insurer’s behalf.

Our advice is to choose a contractor you trust, file the claim with their guidance, and share your claim documents with them. Your contractor can then use the insurance estimate as the foundation for the project, review it for missing or incomplete items, and manage the supplement process from start to finish. The contractor should identify, document, and submit legitimate items the insurance company is obligated to cover under your policy, communicate with the carrier as needed, and keep you informed throughout the process. Your Contractor cannot do this, if you keep him in the dark, which only keeps him from giving you the best roof that he can give you.

Following this straightforward process can save you hours of work, reduce frustration, prevent future regrets, and often result in thousands of dollars more in covered work—ultimately helping you obtain the best roof possible under your claim.

Contrary to what some homeowners may believe, there is usually no financial benefit to keeping your contractor at arm’s length or gathering estimates simply because the insurance company suggested it. That approach almost always benefits the insurer more than it benefits you. Don’t let the insurance company send you on a wild goose chase for estimates when your policy does not require it and the process does not improve your outcome. Choose a qualified contractor you trust, provide them with your claim documents, and allow them to manage the supplement process and help you pursue the full coverage you are entitled to under the terms of your policy.