Can you walk through a roof insurance claim example?
Short answer. In a typical example, hail damages a 9 year old roof, and the adjuster approves a replacement at $15,000 replacement cost with $4,000 depreciation and a $1,500 deductible, so the first check is $9,500. After the roof is installed and a missed item is supplemented, the insurer releases the depreciation and the supplement, and the homeowner's total cost is the $1,500 deductible.
The numbers below are illustrative, but the sequence is how many replacement cost roof claims in Georgia unfold.
The storm and the inspection
- Day 0: a spring hailstorm crosses the neighborhood. Gutters and air conditioner fins show fresh dents.
- Day 3: a roofer inspects and finds hail bruises on every slope facing the storm, above typical replacement thresholds in each test square.
- Day 4: the homeowner files the claim with the storm date.
- Day 15: the adjuster inspects with the roofer present and agrees the roof should be replaced.
The estimate
- Replacement cost value: $15,000
- Depreciation for a 9 year old roof: $4,000, withheld for now
- Deductible: $1,500
- First payment: $15,000 minus $4,000 minus $1,500 equals $9,500, made out to the homeowner and the mortgage company
The supplement
Reviewing the estimate, the roofer notices drip edge and starter strip were left out, submits a supplement with measurements and photos, and the insurer approves $700. See roof supplements.
The build and final payment
- Week 5: the mortgage company endorses the check and the roof is replaced in one day.
- Week 6: the roofer submits the final invoice and completion photos.
- Week 8: the insurer releases the $4,000 depreciation plus the $700 supplement.
Where the money ends up
Total job: $15,700. Paid by the insurer: $14,200. Paid by the homeowner: the $1,500 deductible.
If the same roof had been under an actual cash value roof endorsement, the $4,000 would never have been released, and the homeowner would have owed $5,500 instead of $1,500, plus any depreciation applied to the supplement. See ACV versus RCV and recoverable depreciation.