Do insurance companies pay for roof damage, and how do they pay?
Short answer. Yes, for damage from covered events. Insurers usually pay roof claims in stages: a first check for actual cash value minus your deductible, a later check for recoverable depreciation after the work is done, and separate payments for approved supplements.
Who the check is made out to
Claim checks are made out to the named insureds on the policy. If you have a mortgage, the lender is usually listed too, because it has a financial interest in the house. That means the lender must endorse the check before you can deposit it, and for larger amounts it may hold the money and release it in draws. See mortgage company on the insurance check.
The usual payment stages
- First payment: actual cash value minus your deductible, issued after the estimate is approved.
- Supplements: extra approved items, such as rotten decking found during tear off or a missed second layer, paid as they are approved.
- Depreciation: on a replacement cost policy, the held back recoverable depreciation after you submit the contractor's final invoice showing the work is complete.
On an actual cash value policy, there is no later depreciation payment; the first check is essentially it. See ACV vs RCV.
Payment to contractors
Most homeowners pay the roofer from the claim checks according to the contract. In Georgia, a contractor may not take an assignment of your insurance proceeds within one year of a declared natural disaster, so be wary of anyone asking you to sign your claim over.
Timing tips
- Ask whether your insurer offers direct deposit for payments that do not involve a lender.
- Note any deadline to complete repairs and claim depreciation.
- Keep copies of every check and estimate revision.