Insurance Claims

An insurance policy is a contract. It is an agreement between you and your chosen insurance provider which outlines how damage to your property will be covered monetarily. Within that policy, a deductible is usually identified. This deductible is your portion of the replacement cost. That means you are responsible for paying out the deductible in the event your claim is paid out, that is, if your entire roof costs $10k and your deductible is $1k then the insurance company will pay your chosen contractor $9k for the $10k roof, and you will be responsible for paying your chosen contractor the additional $1k.

Insurance Payments
Your insurance claim is usually paid out in a series of different payments:

1. The first payment you receive will be for the actual cash value, or ACV. This check is usually given to the property owner at the same time the initial insurance estimate is given. The ACV check is usually in the amount of the current roof in its current condition. The ACV amount is calculated by the insurance company using a simple formula. They deduct money based on the age and condition of the roof system. This deduction is noted on your insurance estimate as “depreciation.” The depreciation amount can sometimes be recovered. It is important to note if your policy is an ACV Only policy, or if your depreciation can be recovered after your roof has been replaced. Your MB² Project manager can help you to read and understand your estimate so that you know exactly what your policy covered on your claim.
2. The second check you receive will most likely be for collateral damage that occurred on different items around the property, that is, the hot tub cover, grill or even garden gnomes. Items that aren’t attached to the building on the property is usually covered under this payment.
3. Additional payments will be made to cover the replacement cost value, or RCV. These payments will vary and may come in the form of more than one check. Throughout your roof replacement, MB² will work to identify the additional costs associated with your project. We try to identify everything possible prior to starting construction. This is done in the pre-supplement process that takes place with your insurance company. As with any construction project, there is a possibility that additional things will come up during the replacement. These are covered in the post-supplement process that takes place between MB² and the insurance company.

Property owners will often find this process confusing as the insurance company will send a check with the first estimate, and sometimes offer little additional information. It is important to hire a contractor you can trust to help walk you through this process and make sure you get the most value out of your insurance claim.

You can’t prevent storm damage to your property but, you can control how quickly and effectively it is remedied.