Roof & Storm Damage FAQ

In light of all the recent storms near our headquarters in Phoenix, AZ, we thought we’d cover some of the common questions we receive.

Please note that this is general information, and for anything insurance related, you’ll always want to refer to your individual policy or check with your insurance agent.

1. My roof doesn’t leak… does this mean my roof is okay?

In many cases, roof damage is not easily seen, and leaks don’t always appear at the very next rain. Damage can often remain hidden for months. Professional roofers have tools that allow them to detect moisture beneath roofing materials and pinpoint where damage is not otherwise evident.

2. Will my insurance company pay for my roof to be replaced?

Depending on the amount of damage that has occurred, your roof may merely need repair rather than replacement. If it is damaged enough to require replacement, most insurance companies will pay for the cost of replacement, less your deductible. The good news is that insurance companies usually consider a claim of this nature to be a ‘natural disaster’ that doesn’t count against you for future rate increases. It’s not a bad idea to bring your claims adjuster in alongside the roofer, so you’ll know exactly what they will cover.

3. Can I upgrade my materials?

Yes. However, the increase in price of the higher grade replacement materials will usually be your responsibility. Something to note is that if you have a second storm related claim, the insurance company may upgrade you to the higher grade materials the second time around to prevent future damage and claims.

4. Do I have to use the roofer my insurance company recommends?

In most cases, you are free to hire whichever roofing company you are most comfortable with. In fact, it is a good idea to get three bids from reputable, professional roofers before making a selection.

5. Is the insurance adjuster’s calculation set in stone?

While adjusters are generally well-trained, they are not professional roofing contractors, so it is not unheard of for them to miss important items that need repaired or replaced. It is very common for your contractor and adjustor to reconcile costs at the end of the project to come up with the final number.

6. What is the difference between ACV, RCV and Depreciation?

There are some terms in your insurance contract that you need to be aware of … Replacement Cost Value (RCV), Actual Cash Value (ACV) and Depreciation. Almost everything loses value over time… and building components used to construct homes and buildings deteriorate as they age, thus reducing the value of your property. An insurance adjuster will calculate the amount of your claim settlement by figuring in the deductible and the deprecation of your property. If you have a policy that has ACV coverage, you will need to come up with the difference in the price of replacing or repairing your roof. Let’s take an example … let’s assume your roof costs $20,000 to completely replace, but you only receive a check from the insurance company for $15,000. You are responsible for the additional $5,000 to complete the job. With RCV, first you’ll receive the actual cash value check of $15,000, and later, once the damage is repaired, you’ll receive a second check that covers the difference between the ACV and RCV – the $5,000.

7. How is depreciation calculated?

The most common roofing type, asphalt shingles, tend to have a life expectancy of 25 years. In general, the roof depreciates at about 4% per year. Now assume your roof is 10 years old and a recent hailstorm requires that you replace the entire roof. 10 years times 4% depreciation is 40%, so the ACV is 60%. That means if your roof costs $10,000 to replace, you will receive $6,000 minus your deductible and you are responsible for the $4,000 plus deductible.

8. How can I find a reliable contractor?

It is often best to select a contractor that has operated in your local area for several years. Make sure the contractor is licensed, bonded and insured - and it doesn’t hurt to ask for proof. Ask for references from the company and check online for any comments with the Better Business Bureau and places like Angie’s List to discover what your prospective contractor’s reputation is like with actual clients.