Insurance Claims

How will you be compensated by your insurance company for the roofing repair cost. 

If your roof has been damaged, you may be wondering whether you should file an insurance claim and how you will be compensated by your insurance company for the repair cost. 

The first thing to keep in mind is that each insurance company and policy is unique. The goal is to hire a roofing contractor that can work with you through the entire process, no matter how complicated it may appear.

At Marlatt Roofing, we have extensive experience working with clients and insurance carriers to repair roof damage caused by Edmond’s periodic storms. Although not all roofing firms operate in the same manner, here’s a simple example of how insurance companies pay out their claims and how we assist our clients with the damage, insurance claim, and repair or replacement process.

The insurance company will send out one of their adjusters to document and confirm the damage to the dwelling.  The insurance adjuster will then determine the approximate cost and scope to complete the repairs.  Marlatt Roofing will also review the insurance adjuster scope and estimate to make sure there isn’t any discrepancies between their scope and Marlatt Roofing’s scope and estimate. 

Once the scope and estimate has been settled and agreed upon by all parties then the insurance company will issue the first check.  This first check is the actual cost value of the total project and repairs (ACV).  Your depreciation and deductible typically have already been taken out of this first check.  Depending on your policy the insurance company will make the check out to you and your mortgage company.  The mortgage company may want a final invoice before they endorse the check. 

Once the repairs have been made, Marlatt Roofing will send the insurance company a final invoice showing that the work has been completed.  At that time the insurance company will send out the second check to you for the (recoverable) depreciation and any paid when incurred cost (PWI).  (PWI’s) are items that weren’t currently on the roofing system but were needed to be installed due to current building codes.  These items are mainly things like Ice and water leak barriers, flashings, and decking requirements. 

Depreciation is classified as either recoverable or non-recoverable. The type of recoverable you have will always be determined by your insurance policy. Some insurance policies have fully recoverable depreciation, while others have only provided partially recoverable depreciation.  The same applies to any paid when incurred items.  Some policies don’t cover building code endorsements. 

Now that all the work has been completed and both checks have been sent to the customer, it’s time to pay Marlatt Roofing.  The only remaining balance due currently besides the first two checks is the deductible.  The customer will now need to come up with the remaining balance for the deductible amount since the deductible has already been taken out of the first (ACV) check.  The customer is only liable for the deductible amount unless the customer upgraded the existing roof system to a more expensive grade or style and at that time the customer would pay the difference for the additional cost out of pocket.    

Example breakdown:

Replacement Cost Value                    $10,000.00

Less Depreciation                                  ($2,000.00)

Actual Cash Value                                 $8,000.00

Less Deductible                                      ($1,000.00)

Net Claim

(First Check $7,000.00)                        $7,000.00

Total Recoverable depreciation         $2,000.00

Total Paid when incurred                    $500.00

(Second Check $2,500.00)

Net Claim Remaining if additional

Amounts are Recovered                     $9,500.00

Marlatt Roofing Invoice                       $10,500.00

Customer out of pocket                       $1,000.00

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