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How to Read Your Roof Insurance Claim Paperwork: Part 1

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How to Read Your Roof Insurance Claim Paperwork: Part 1

Roof repair insurance claim paper work.
Understanding your roof insurance paperwork can be a daunting task when you are first looking at it. At Dreamworx Roofing, we try to give homeowners transparent information about the roofing industry. We always want our customers to have a solid understanding of what is being done on their homes and be well informed and educated when they are going through the process of getting an insurance claim on their roofing systems. In this post, we will walk you through roof damage insurance claims so you can understand what you're looking at and know exactly what all the information on those pages actually means.

Claim Summary

On a roof insurance claim, there is a headline across the top that might read like this, “Summary for Coverage A - Dwelling - 35 Windstorm and Hail”. This headline marks the start of the financial summary of the claimed damages. If there was a second building that was damaged, such as a shed, that would be marked somewhere below under “Summary for Coverage B”.
Line Item Total This represents the sum of the unit prices for all damages before tax and before contractor overhead profit. The material sales tax is then typically displayed underneath and the sum of those two items brings you to your subtotal.

General Contractor Overhead and General Contractor Profit The next line item you will see is contractor overhead and profit. These are the costs associated with running the business and coordinating the roofing project, as-well-as the associated profits that the contractor needs to claim to successfully run their business and grow.

RCV (Replacement Cost Value) Adding everything together we get the total cost, referred to as the Replacement Cost Value. This is the grand total cost associated with the repair claim.

Total Amount of Claim If Incurred This is the total amount of money the insurance company will pay out to cover these damages. This is equal to the RCV minus whatever deductible your particular plan has.

Financial Roof Claim Example

Take a look at a real storm damage roofing project our team worked on.

Line Item Total: $31,307.78
General Contractor Overhead/Profit: $5395.66
RCV: $37,350.20
Deductible: $1,310
Total Amount of Claim If Incurred: $36,040.20

As you can see:

Line Item Total + General Contractor Overhead/Profit = RCV
$31,307.78 + $5395.66 = $37,350.20

RCV - Deductible = Total Amount of Claim If Incurred
$37,350.20 - $1,310 = $36,040.20

This homeowner had extensive storm damage on their roof and our team came in and completely replaced their roofing systems. We worked with their insurance company and they only had to pay the $1,310 dollar deductible on their policy and they were able to get $37,350.20 worth of repair and replacement work done.

Line Items

Towards the back of the roof insurance claim, you can see every expense on the roof that the insurance policy covered such as tear-off and removal, shingle installation, chimney flashing, and so on. Adding all these items in accounting for depreciation and such brings you to that Line Item Total you see at the beginning of the financial summary.

Supplemental Items

Very often on storm damage roofing projects, the original line items do not include all the charges ultimately needed on a storm damage repair job. Our team will take careful notes of these adjustments and contact the insurance company to make sure that the customer gets a fair settlement and all the appropriate expenses are covered by the insurance company.

At first glance, a roof repair insurance claim seems complicated but with just a little bit of research, you can quickly get a strong understanding of what you are looking at and be well informed to understand exactly what is being done to your home and how the insurance policy is helping you keep your roof in great shape.

Contact Our Team

Contact our roofing and exterior experts today and we would be happy to help answer any of your questions or find the perfect solution for your situation!

Charlie Anderson
"Living comfortably at home means living in a safe, cozy house that protects you from outside elements." -Dreamworx Co-Owner, Charlie Anderson

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