Questions & Answers About Roof Insurance Claims

This article contains the following information.

  • Will filing a roof insurance claim raise my premium?
  • What does the insurer want?
  • What is the payment procedure of the insurer?
  • What if my insurance company does not pay the whole cost indicated by the roofer?
  • Why do insurance companies refuse to pay depreciation?
  • What are the most common forms of home insurance policies?
  • How do you calculate Recoverable Depreciation and Actual Cash Value?
  • How will you bill me?
  • Do you take payments?
  • Is there a warranty on my new roof?
  • Is my roof going to be replaced or repaired?
  • Do insurers provide a discount for an impact-resistant roof?
  • How does the mortgage firm operate?


If a hail storm just went through your area, you’re probably wondering if your roof was damaged and/or if you should submit an insurance claim for your roof.

This article addresses frequently asked questions & concerns about roofing insurance claims, such as “What is the roof replacement process?” and “When will my first roofing insurance claim check arrive?”

We also describe popular roof insurance terminology so that you are better prepared when you call your insurance company.

Will filing a roof insurance claim raise my premium?

If you were not negligent, then most likely not.

Because hail damage is not the result of your negligence, most insurance companies will not increase your premium if you file a claim. I mean think about it – it’s not like you moved your residence in the middle of a hailstorm. In comparison, if you backed your car into your garage door, you were negligent because you didn’t open the door or double-check that it was open before backing up. In such a case of negligence, your premium will almost certainly rise.

What does the insurer want?

When an insurance company inspector comes to check your roof, they are usually looking for apparent hail damage or other weather-related damage to your roof. The inspector looks for bruising or black spots on your shingles where granules have been removed, exposing the underlayment or fiberglass. New hail damage is usually bright. However, older damage can appear duller owing to weather exposure.

Although hail damage may not immediately threaten the roof’s structural integrity, it will cause problems in the future. Furthermore, many insurance companies have a statute of limitations on how long a hail claim can be pursued. As a result, it is always a good idea to contact your insurance carrier as soon as possible following a large hail storm.

When your roof sustains hail damage, numerous things happen.

  • Accelerated granule loss
  • Accelerated shingle aging
  • Voids manufacturer’s warranties
  • Leads to other associated problems

What is the payment procedure of the insurer?

First, double-check

The insurance company should send the policyholder the first insurance check for your roof replacement as soon as the insurance adjuster has completed their roof damage evaluation.

The second check (recoverable depreciation)

The second check is withheld until the roof repairs are done. This second check is generally 10% to 40% of the entire settlement and is usually referred to as “recoverable depreciation” or “withheld depreciation.” When the insurance company gets an invoice for the final payment, it sends it to the homeowner.

When you receive the invoice, send it right away to your insurance carrier. This will expedite the payment of depreciation. Please remember that most settlement checks are only for 180 days. If the homeowner lets this check expire, the bank will not honor it, and a lengthy process to get this check reissued begins.

Furthermore, remember that the settlement is based on the cost of repairing the roof with “similar kind and quality” materials. However, there are situations when the homeowner and their insurance adjuster disagree on the cost, size of the roof, or scope of the damage. In this instance, your sales representative has the requisite skills to address these disputes with your insurance adjuster immediately. Everyone wants to make this process as simple as possible for you.

What if my insurance company does not pay the whole cost indicated by the roofer?

If you choose a trustworthy roofing company, they should be able to verify your insurance documents and notify you if anything is missing from your insurance’s estimate. At that time, and with your agreement, your roofing contractor should be allowed to contact your adjuster and inform them of any differences, as well as any code requirements that may have been overlooked in their initial adjustment. These code standards will necessitate documentation from your municipality, which your contractor should be able to give.

Why do insurance companies refuse to pay depreciation?

Insurance companies are not uncommon in withholding depreciation – the second check or balance for the roof replacement or repair. They do this because of con artists. The insurance provider wants to ensure you’re just spending the money on replacing or repairing your roof. They can avoid overpaying by withholding funds until they receive the final invoice from the roofing firm.

What are the most common forms of home insurance policies?

Residential insurance plans are classified into two types:

  • Replacement Cost
  • Actual Cash Value (ACV) (RC)

Actual monetary value

With ACV coverage, the value of your roof will depreciate each year for ten years. As a result, if your roof has been damaged, you will only receive a check for the roof’s depreciated worth.

Cost of Replacement

If you have an RC policy, your insurance provider will pay for replacing your roof, less your deductible. Furthermore, “replacement cost” home insurance coverage will typically pay for a new roof in two installments.

How do you Calculate Recoverable Depreciation and Actual Cash Value?

Assume you installed a new $10,000 roof on your house five years ago, and a hail storm recently wrecked it. Assume your 5-year-old roof was made of ordinary asphalt roofing shingles, which endure roughly 20 years. The Actual Cash Value would be $7,500 because your roof was only five years old when the hail storm happened. As a result, the recoverable depreciation is $2,500. This is the difference between the replacement cost of $10,000 and the actual cash value.

Here’s how it works:

R = ACV x (E – C) / E

10,000 x (20 – 5) / 20 = 7,500

R = $10,000 (Replacement cost or purchase price of the roof) (Replacement cost or purchase price of the roof)

E is equal to 20 years (Expected life of the roof)

Five years = C (Current life of the roof)

Actual Cash Value is calculated by subtracting the current age of your roof from the expected life of the roof (e.g., 20 – 5, which equals 15), multiplying by the replacement cost or purchase price of the roof (15 x $10,000, which equals 150,000), and dividing by the expected life of the roof (150,000 / 20, which equals 7,500).

How will you bill me?

Once your new roof is completed, they will send you an invoice for the entire amount owed. Please deliver this invoice to your insurance company immediately, as they will begin processing your second check.

Do you take payments?

Yes. Upon completion of your roof, they will receive a partial payment or your first check. When you receive the second check, the balance is expected. Please make arrangements with your insurance company, bank, and mortgage company so that you have monies available at this time.

If payment in full is not made within 30 days of completion, a 1.5% penalty per month will be applied until the balance is entirely paid. Furthermore, a lien may be imposed on your property to shield us from liability for the services completed.


Is there a warranty on my new roof?

Yes. Two warranties will protect your new roof:

It only covers workmanship and labor, not materials. This warranty is good for five years.

Manufacturer – The shingle manufacturer provides this warranty covering the materials used. Depending on the product you install, these warranties range from 25, 30, 40, 50, and lifetime years.

Please keep in mind, however, that these warranties are only good until your bill is paid in full.

Is my roof going to be replaced or repaired?

It is up to the insurance company to choose whether your roof should be repaired or replaced. It all boils down to which option is less expensive: a complete roof replacement or mending a tiny section of your roof. The majority of hailstorms are large. They are large enough to cause damage to several dwellings, if not entire villages. As a result, hail storms frequently cause total roof damage. As a result, most insurance companies will cover the whole roof replacement.

Do insurers provide a discount for an impact-resistant roof?

Every year, the number of roofing products available grows. As roofing technology advances, so searches for the ideal roof:

One that is visually appealing, has a high property value, is cost-effective, is resistant to hail, and, most importantly, is maintenance-free.

Some insurance companies can offer discounts if you have a hail-resistant roof installed. This is typically characterized as roofing material that has passed an Underwriters Laboratory test known as UL 2218. In this test, steel balls of varying sizes and weights are dropped from varying heights onto roofing material, and the resulting damage is analyzed. Each material is assigned a rating based on the damage caused by the steel balls, which the material maker must agree to for the insurance company to participate in their discount program.

Unfortunately, most manufacturers have declined to participate in these rebate programs.

However, deal with several manufacturers who create the following Impact Resistant tiles and may give these reductions.

How does the mortgage firm operate?

On the first, and sometimes second, check, most insurance providers will include both the homeowner’s and the mortgage company’s names. Mortgage firms ask the homeowner to sign and send this check to them. Each mortgage firm, however, has its protocols for returning monies to the homeowner. Usually, this occurs only after repairs have been completed. The best thing to do is to inquire with your mortgage provider about the papers required to release this money.

Please remember that most settlement checks are only for 180 days. The mortgage company will not recognize this check if the homeowner permits it to expire. As a result, please ensure that the mortgage firm receives this check before it expires.


There are several important factors to keep in mind regarding roofing and insurance. The most important thing is understanding your policies and what they cover. Also, ensure you know the warranties offered by your roofing product and if any discounts are available for impact-resistant roofs. Additionally, be aware of the process required by your mortgage company to receive and release funds. With this knowledge, you can make an educated choice about whether to repair or replace your roof.

Recommended Posts