Frequently Asked Questions: Roof Replacement with Insurance

 

Why is my check less than what my roof will cost?
There are two main deductions from an adjusters estimate of what your roof will cost. The first is your deductible. The second is for “Betterment or Depreciation”.


What is Betterment or Depreciation, RCV, and ACV?
RCV stands for Replacement Cost Value. RCV is the current retail cost to replace your damaged items. ACV is the Actual Cost Value. For example, assume a roof in year 10 of an expected 20 year life is totaled by hail. The cost to replace the roof is $10,000 Then RCV would be 10,000 and the ACV would be $5,000 (10/20th of $10,000). The difference between the two, $5,000, is the depreciation which is additional funds you will receive.  Generally depreciation is paid after you submit a final invoice.


Is the adjusters calculation of my replacement cost set in stone?
No. There are many human factors in this process. It is common that your contractor and adjustor will need to reconcile a few items. You should never be concerned that your estimate from Bert Roofing is different than your adjuster's. The main cost factor in a shingle is asphalt which is petroleum. With the price of oil going crazy, shingle prices have changed almost monthly this year.


Bottom line, what is the cost to the homeowner?
It is always your deductible plus upgrades if any.


I have shopped around and found a contractor that will do the job for less than what the adjuster has calculated. Can I use this savings to reduce my deductible?
No. Your deductible always comes first. You only save your insurance company money by choosing a cheap contractor. When you submit an invoice that is lower than what the adjuster calculated, this will lower the amount of depreciation you will later be paid.


Some contractors have said they will “cover my deductible”. How do they do this and is it proper?
It is very improper to cover a deductible. Read more about this on our deductible page.


Is a sign allowance or referral fee given to me proper?
It can be, but generally it is just a disguise for “covering a deductible”. To be legitimate, this fee must be the same if you buy a roof or not. It also would need to be reported as taxable income.


How long does it take to get the additional funds once I submit an invoice to my insurance carrier?
Not long. By law they must release these funds in a few days.

 

What is Xactimate?

Xactimate is a construction pricing software / database that most major insurance companies use to write up claims.  Chances are very great your claim was written up on this software. Within the software are price list that are updated monthly and very specific to different regions of the country.

Why is Xactimate Important?

Xactimate is the language that adjusters speak in. Frequently your contractor and adjuster will need to reconcile their estimates. When both use Xactimate this process is significantly easier. When there are differences, there is little debate over price since that is determined by Xactimate. Then the only real differences come down to easily measurable quantity items. For example, there are either eight plumbing stacks on your roof or nine - seldom will there ever be subjective arguments over the price of the plumbing stacks.

When there are significant storm events like the spring of 2011, there are many adjusters brought in from other regions of the country. Without a contractor who uses Xactimate, you may have your job under valued with rural Oklahoma price list.

Bert Roofing Uses Xactimate

While we do not use the Xactimate program to write up every insurance estimate, we do use the very important and proprietary price list as a guide.  Our estimators are very knowledgeable of this program and can help you get your claim settled properly.

You can request and estimate from us online or call our main office number at 214-321-9341.