What Does Hail Do to My Roof?

Asphalt shingles are designed with protective mineral granules that block the UVs of the sun and protect the underlayment. Hail damage can cause severe granule loss, material removal at the edges of the shingles and penetration of the shingles; all of which prematurely age the life of the roofing structure and will eventually cause leaks. Hail can damage and degrade virtually any type of roof, including modified bitumen, EPDM, TPO, metal and tile.

Can I Tell If I Have Hailstorm Damage to My Roof, From the Ground?

Usually, you can’t spot hailstorm damage to your roof from the ground. You will be able to easily spot damage to your siding or gutters; and it’s safe to assume that if there’s visible damage to your car, windows, siding or gutters, your roof most likely has hailstorm damage too. Since hail damage is not always immediately evident, it’s a good idea to contact a local, professional roofing contractor in Colorado, who specializes in roof hail damage to evaluate the extent of damage after a storm.

Will My Home Insurance Rates Go Up If I File a Hail Damage Claim?

Typically, insurance companies cannot single out a homeowner for a rate increase bases on “Act of God” storm damge claim. However, your insurance company can raise rates for everyone in your area based on the severity of the storm. So, if you don’t file a claim, your increase in premium will pay for everyone else’s repairs, except for yours.

How Does the Claims Process Work?

If the adjuster determines there is damage when he meets with your contractor, it usually takes about a week (although in some cases it could be same day) you will receive a list of damages the insurance company has agreed to pay for, along with your first check. 

This is the ACV (Actual Cost Value) check. This represents the fair market value of your roof today. Much like a car, a 10-year-old roof is worth less than a new roof, and the difference between those two amounts is called depreciation. So, the ACV is the cost to repair or replace the damaged property, minus depreciation.

The ACV plus the depreciation (which you will be paid AFTER the work is done), equals the RCV (Replacement Cost Value). Most storm damage contractors will agree to perform the work for the RCV amount paid by insurance, whatever that amount may be. So, your only out of pocket expense will be your deductible.

So, for example, let’s say you have a 10-year-old roof, and the actual cash value of that roof is $8,000. Let’s also assume it will cost $15,000 to get your roof replaced with a new roof of like kind and quality (that would be the replacement cost value or RCV). The $7,000 difference represents the depreciation. The age and condition of the roof are considered when calculating this depreciation. The older the roof, the higher the depreciation amount.

The insurance company will write you a check right away for $8,000 (ACV). If you do choose to have your roof replaced, then once the work is complete, your contractor will submit a certificate of completion to the insurance company for the work that was done. At that point, your insurance company will release your depreciation payment. Once received, you will either sign that check over to the contractor or deposit it into your account and issue a personal check to the contractor for the remaining balance of the work.

Keep in mind that when the work is completed, the insurance company will issue a check for the recoverable depreciation (there may also be non-recoverable depreciation in some cases, but that is beyond the scope of this article- please ask your project manager to explain) only if the total expenses are equal to, or greater than the total settlement. Many people never get the final depreciation payment because they do not understand the process or the contractor, they chose didn’t understand the proper procedures. When this happens, you can lose thousands of dollars.

Do I Need Multiple Contractor Estimates?

For an insurance claim, there is no point in getting multiple contractor estimates. You are not required to do so, and it might even be against your best interests.  Your insurance company has created their own price list and will only pay for the cost of repairs at the lesser of their fixed price list or the price you are charged by your contractor.  

So, if your insurance scope says $15,000 and you get a contractor estimate for $12,000, then your insurance company will only pay you $12,000 (minus your deductible).  Your contractor will have to submit a final bill to the insurance company to get the rest of your money (the deprecation) released, so there is no way to profit from your insurance claim without committing insurance fraud.

Most storm damage restoration companies will do your repairs for the amount the insurance company is paying (including supplements- see below). Your only out of pocket expense will be your deductible.  If you are paying $1,000 no matter what, would you rather get a $12,000 roof or a $15,000 roof?   Why would you go with a contractor willing to do the job for below market rates?  You can’t keep the difference.   All you are doing is saving your insurance company money and most likely getting an inferior roof.  

So, feel free to interview several companies so you can find someone that you are confident will do a great job, use quality materials, and will be around for the warranty period. But when you get multiple estimates or use price as the determining factor, you are just cheating yourself out of the quality job you deserve.

What If I Get a “Low Ball” Offer from my Insurance Company?

There is a 95% chance this will happen and it’s not for the reason you might think.  When an insurance adjuster agrees to buy you a new roof, he will quote you a “standard” roof.  A standard roof has underlayment, shingles (or tile, metal, etc.), ridge cap, ventilation, and nails.   But that adjuster can’t see what is under your current outer layer.   You may have rotted decking that will need to be replaced as part of the process.  He also doesn’t account for the dozens of different code requirements across the state that will require additional items like ice and water shield, drip edge, valley metal, etc. There could also be things like damaged gutters, or windows, that the adjuster missed. 

The insurance company is not only ok with your contractor asking for more money to cover additional work, but they also expect that to happen.   It’s not like the personal injury commercials you see on TV where someone is suing an insurance company.  In fact, this process is not contentious at all, it’s routine.   This is called insurance supplementing and it’s crucial to have a contractor that is intimately familiar with Colorado building codes, insurance laws and procedures to make sure you get everything covered. 

After the insurance company approves the supplement, they will issue you a new scope which includes these increased amounts. These supplemental amounts will become due and payable to your contractor once the work has been completed.  Remember that additional supplements approved by your insurance company do not increase your out-of-pocket costs whatsoever. In most cases, your only out of pocket expense will be your deductible. 

Supplements are additional money that the insurance company has agreed to pay your contractor for the additional work performed and materials provided.  This is not money that you are entitled to keep, as it raises the same insurance fraud issues discussed as covering, waiving, or rebating your deductible.

At CSR, we are insurance claims experts. We even have former insurance adjusters on staff. We will work with you through the entire process to make sure you get all the damage covered and you are paid everything you are entitled to. We can handle all the red tape for you and work directly with your insurance company.

Can You “Cover” My Deductible?

Under Colorado law it is insurance fraud (both on your part and the part of your contractor) for a contractor to pay, waive, or rebate any portion of the insurance deductible or for you to keep any amounts that the contractor has billed the insurance company for.

In addition to the prospect of getting into legal trouble (and insurance companies are cracking down on this type of activity), you must understand that a company that is willing to commit insurance fraud and induce you to do the same is very likely to make up the amount they credited you by taking other shortcuts like using inferior products on your roof. Many of these companies are also from out of state and aren’t going to be around to perform any warranty work on that inferior job either.   There are some legal ways we can work with you to help lessen the impact of your deductible and we’d be happy to discuss those with you.

Colorado Superior Roofing experts have decades of combined experience in the residential and commercial roofing industry. We are an A+ rated Business with the Better Business Bureau and a proud member of Team Dave Logan. We have offices in Lakewood, Parker, Littleton, Denver, Colorado Springs, and Longmont, so wherever you are, we’re not too far. So, give us a call. We offer free inspections and free estimates.

Using the Insurance Company’s Roofer?

You’re legally entitled to use whatever contractor you want. We’ve been invited to be a part of these “referral networks” by many insurance companies. However, in most cases to do so, you must agree to do things the way the insurance company wants you to do them, which is often not what’s in the best interests of the homeowner.

The insurance company’s “preferred contractors” will often have incentives to keep costs low, which means they aren’t doing all they can to get you the best roof possible. Remember that all you are going to pay out of pocket is your deductible regardless of whom you hire. That means for $1,000 (or whatever your deductible amount is) you can get a top-quality product from a highly reputable contractor who is focused on your best interests, or you can go with the lowest bidder from the insurance company and take your chances.