Dealing with a storm-damaged roof can be overwhelming, especially when insurance is involved. Fortunately, your homeowner’s insurance is there for situations like this. If your roof has sustained storm damage, you should receive a payout to cover the cost of a new roof. However, you will still need to handle the deductible.
Regardless of the amount, the deductible is your responsibility once the claim is approved. That said, you might encounter roofing companies offering to cover the deductible for you.
The question is: should you allow a roofing company to do this if they offer it?
For more than 75 years, Shumaker Roofing has offered clear and trustworthy guidance on roof damage claims. With this expertise, I’ll help you determine whether you should accept a roofing company’s offer to cover your deductible.
Is it a Good Idea to Let a Roofing Company Cover Your Deductible?
No matter what a roofing company claims, you should never let them pay your deductible. One of the most common scams in the roofing industry involves roofers offering to “eat” your deductible. Not only is this illegal, but it’s also considered insurance fraud.
Despite this, some homeowners may still be tempted when a roofing company makes such an offer. They might think they’re saving money or avoiding a high deductible, but hiring a roofer who operates this way is a mistake. Their workmanship is likely to be subpar, and if issues arise, you’ll have no legal recourse since you participated in the fraud.
While saving money is important, especially with high deductibles, committing insurance fraud isn’t worth it. Always avoid any roofer offering to cover your deductible—it’s simply not worth the risk.
Why Would a Roofing Company Offer to Cover Your Deductible?
Now that you understand why a roofing company shouldn’t pay your deductible, you might wonder why some companies offer this in the first place. The answer is simple: to win your business. These companies often advertise the lowest prices in the area, making their offers seem hard to resist.
To make the deal even more tempting, they’ll offer to pay your deductible. But this is where homeowners often get taken advantage of. What they don’t tell you is that you’ll receive subpar materials and low-quality labor. They won’t stand behind their work with any meaningful warranty either.
In the end, you not only participate in insurance fraud but are left with a roof likely to fail. We understand the desire to save money, but going for the cheapest option often leads to bigger problems and costly repairs down the road.
What additional costs should you expect beyond your deductible when your roof damage claim is approved?
Now that you understand the importance of paying your deductible and avoiding the lowest price, you might wonder if there are additional costs beyond the deductible for an insurance-covered roof replacement.
The answer depends on your insurance policy and how much your insurance company compensates you. Both Actual Cash Value (ACV) and Replacement Cost Value (RCV) policies provide payouts, but the amounts differ significantly. Understanding the type of policy you have is crucial for knowing what to expect in terms of coverage and potential out-of-pocket expenses.
Actual Cash Value policy
An Actual Cash Value (ACV) policy provides the depreciated value of your roof at the time of the claim. This means you’ll only receive a payout based on what your roof is currently worth, which often isn’t enough to cover a full replacement.
In this case, you’ll need to combine the depreciated payout with your own funds to cover the remaining costs out-of-pocket. While it may be tempting to opt for a low-cost roof or one that matches your ACV payout, keep in mind that a lower price typically means lower-quality materials and workmanship.
Cost Replacement Value Policy
With a Replacement Cost Value (RCV) policy, your insurance company provides a payout to cover the cost of replacing your roof with a new version of the same type. This means you should receive enough money to cover the full cost of a new roof.
Similar to an Actual Cash Value (ACV) policy, you’ll first receive a check for the current value of your roof, while the rest is withheld as recoverable depreciation. Once the roof replacement is completed and you provide proof (such as photos) that the work was done according to the claim, the insurance company sends the second check to cover the remaining amount.
Keep in mind, however, that the insurance company only pays to restore your roof to its original state. If you choose to upgrade materials, like switching from 3-tab shingles to architectural shingles, you’ll need to cover the additional cost.
What should you do if your insurance doesn’t cover the full cost of your new roof?
An RCV policy is meant to cover the full cost of your roof replacement, but that doesn’t always mean you’ll get that amount upfront. It’s common for insurance estimates to come in lower than the quote from a roofing contractor. This happens because insurance companies often leave out important line items, labor costs, or other expenses needed for the job to be done right.
If this occurs, one option is to supplement the missing items in the claim, though this will require your time and effort to ensure everything gets covered. A trusted roofing contractor can offer guidance and verbiage to help. Based on 75 years of experience, we know insurance companies tend to listen to policy owners more than contractors.
Alternatively, you could use the insurance money for part of the cost and cover the rest out of pocket. Financing is another option, allowing you to spread out payments. Regardless of your choice, remember you’ll still need to pay your deductible in full. Choose the solution that best fits your budget and needs.
How Can You Protect Yourself From Roof Damage Insurance Scams?
After reviewing this article, you should now have a clear understanding of why paying your deductible is necessary, how your insurance policy directly influences the payout, and what steps to take if your insurance doesn’t fully cover a roof replacement. By being aware of these key factors, you can protect yourself from falling victim to one of the roofing industry’s most frequent scams. Always ensure that you thoroughly review your policy details and understand your coverage limits before committing to any major repairs or replacements. If insurance doesn’t cover everything, explore alternative options such as financing or partial repairs.
Ultimately, being informed about your deductible and policy terms empowers you to make smarter decisions, avoid potential fraud, and ensure your roofing needs are handled with integrity and transparency.
Conclusion
In conclusion, understanding your homeowner’s insurance policy, including your deductible and coverage options, is essential when dealing with roof damage claims. Avoid the temptation of letting a roofing company cover your deductible, as this can lead to insurance fraud and substandard workmanship. It’s better to work with a reputable roofing contractor who operates within legal and ethical guidelines. Always review your policy details, and if necessary, explore financing options to cover additional costs. By staying informed and making smart decisions, you can ensure that your roof is repaired or replaced properly. Protecting both your home and your investment for the long term.
FAQs: Should I Let A Roofing Company Pay My Deductible?
1. Is it legal for a roofing company to pay my insurance deductible?
No, in many states, it’s illegal for a roofing company to pay your deductible. This is considered insurance fraud
2. What risks do I face if I let a roofing company cover my deductible?
You risk subpar workmanship, potential legal issues, and your insurance claim being denied if fraud is detected.
3. Why would a roofing company offer to pay my deductible?
They often do this to win your business, but it’s a sign of unethical practices.
4. What should I do if a roofing company offers to cover my deductible?
Decline the offer and find a trustworthy contractor who follows the law.
5. Can I negotiate my deductible with the insurance company?
No, the deductible is a fixed amount in your policy, and you are required to pay it.
