Does insurance fix hail damage, and do you have to use the money to fix it?
Short answer. Insurance does not do the repair; it pays, and you hire the contractor. In general no law forces you to repair, but your mortgage lender can require it, replacement cost policies hold back depreciation until the work is done, and unrepaired hail damage can be excluded from future claims or block a new policy.
Who does the work
Your insurer approves an amount and sends payment. You choose the roofer. Some carriers offer a preferred contractor network, but you are not required to use it, and the roofer's contract is with you, not the insurer.
Do you have to repair?
Usually nothing forces you to, but several things push in that direction:
- The mortgage company. If your lender is named on the check, its loss draft department typically controls the money and releases it as work is done. See mortgage company insurance checks.
- Recoverable depreciation. On a replacement cost policy, the first check is actual cash value. The held back depreciation is paid only after the roof is replaced, within the time your policy allows. Skip the work and you keep only the smaller check. See recoverable depreciation.
- The next claim. Insurers will not pay twice for the same damage. If hail hits again, the adjuster can exclude damage you were already paid for and never fixed.
- Renewal and resale. An unrepaired roof can trigger an inspection, a nonrenewal, or a buyer's inspector flagging it.
Not repairing is different from pocketing the deductible
Choosing to live with the damage and keep a smaller actual cash value payment is your call. What Georgia prohibits is a contractor rebating or waiving your deductible, or billing the insurer a price you are not really paying. Those turn a claim into fraud; see can a roofer pay your deductible.