Cedar Park TX Roof Repair Contractor, Rhino Tuff Roofing, discusses the process of filing a claim for major damage.
Being hit with a huge claim is rare, but it happens to a great many homeowners. Trees falling on homes, flooding, wind storms, fire and any number of things can happen to a home without warning. Homeowners insurance and its various addendum’s are designed to give you peace of mind that you’re covered should something extreme happen to your home.
The Claims Process
When you have a major claim and need to use your insurance you will want to have as much documentation as possible.
It would be a good idea to create a comprehensive visual record of your property. Take the time to create a photo and video document of what your property looks like now. Then, when damage occurs, take lots of pictures and videos of the damaged areas. Be sure you present the photos and videos that you took prior to the damage along with your new photographs of the damage to the insurance agent. You’ll want to make a full accounting of all expenses associated with the problem. If your home is not habitable, for example, your insurance should cover all or at least part of the cost to rent other housing while repairs are underway.
A claims representative from your insurance company will inspect the damage. The claims adjuster will pull everything together in a packet and submit it to the insurance company. After the wheels of the company turn for a bit, you’ll get a check in the mail to cover the damages less your deductible and less depreciation. It is the depreciation that can cause concern for many homeowners.
Most homeowner insurance policies allow the insurance company to hold some of the funds back until the repairs are completed. Usually companies do this only on very large dollar amounts to protect themselves as well as the homeowner. Recoverable depreciation is the amount owed to you by the Insurance company that you won’t get until the repairs are complete. It is a cushion to help determine the exact amount of the repairs and to make you whole again.
Insurance companies typically release about 60% of the funds to you upfront to enable you to buy the construction materials that will be needed and to provide a down payment to the contractor you’re using for repairs. As the work progresses you should continue to document all expenses. When the construction is complete, you’ll be ready to recover the depreciation.
Some depreciation is not recoverable. When the construction is finished, you will submit all receipts, invoices and dates for the construction project to your insurance company. They will tally it up and inspect your property to be sure that the job is complete. A final check will be cut to cover the total costs for the project based on the receipts and invoices. In the situation where the repair costs are less than the original estimate made by the insurance company then they will not release the full amount of the depreciation.
You can recover up to the full amount of the withheld depreciation. While annoying at times, holding back the funds lets the insurance company keep tabs on how the money is being spent and reduce insurance fraud. It also protects homeowners. Contractors will have a strong incentive to finish the job they start because they have to in order to finish getting paid.
Bret Hannah is the President of Rhino Tuff Roofing, a Cedar Park TX Roof Repair Contractor who is a licensed contractor that has been in business since 1995. Rhino Tuff Roofing is an approved contractor for all insurance companies.