Understanding How the Insurance Restoration Process Works with Roofing
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Understanding How the Insurance Restoration Process Works with Roofing

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Many of my clients in the past were investors who were looking to replace their roofs and asked for an estimate.

I always taught my team to perform inspections even when preparing for cash sales. These inspections would often turn up hail and/or wind damage that could qualify for insurance replacement. To an investor, this means simply paying a deductible, rather than paying for the entire roof system replacement.


Here are a few topics to understand when it comes to this process:


The Inspection

It's a waste of time to initiate the insurance restoration process without having a thorough inspection performed by a roofing contractor who is familiar with the parameters insurance companies require to approve a roof.


It is ideal to see pictures of hail strikes to the roof, missing shingles, and more in a detailed report that can be submitted as evidence in an insurance claim.


Approval

In most cases, your roofing contractor should meet with your insurance adjuster to ensure that your interests are represented as they should be.


Should an approval come to pass, the payment is usually broken up into 2 payments more (ACV/RCV) The initial check is known as the ACV (actual cash value) and is released upon approval. The secondary check, known as the RCV (replacement cost value), will be released after the work is completed and the contractor has engaged in the proper invoice protocol with the insurance provider.


You will receive a scope of loss from the insurance provider that will dictate what will be replaced during the restoration. The scopes are essentially complex and detailed bids or estimates put together using a software known as Xactimate. The contract should follow along with the scope unless the property owner desires to pay for additional items out of pocket.


Completion

You will want to make sure that your roofing project is complete as per the insurance scope and everything is done properly before handing over the final payment to your contractor.


It is also important to confirm that your warranty is activated. Many contractors will not activate the warranty until they have received the final payment.


Each insurance provider can be different when it comes to exploring your insurance restoration options so be sure to have a thorough consultation with a good roofing contractor prior to beginning the process.

Hopefully, this can help you to save some money when upgrading your own rentals in the future!

Joseph Bryant


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