How the Insurance Process Works
HAVE THE CONTRACTOR DETERMINE IF THE PROPERTY WAS DAMAGED.
If that damage exceeds your deductible. (This is important to minimize your claim history, which could cost you down the road, even if your claim is denied!).
FILE A CLAIM WITH YOUR INSURANCE AGENT.
If the damage exceeds the deductible. Determine when the adjuster will be available to meet with you and your contractor.
AUTHORIZE THE SELECTED CONTRACTOR TO REPAIR.
After you, your insurance company, and the contractor determine the damages and agree upon the cost of the repairs. Discuss time frames, expectations, and payment terms before authorizing the contractor to proceed.
THE JOB IS SCHEDULED AND THE ROOF IS BUILT.
The time of replacement can vary due to the home size, weather, and the pitch of the roof.
SEND INSURANCE THE CERTIFICATE OF COMPLETION.
After the work has been completed, get a certificate of completion from the contractor and send this to your insurance agency in order to receive the RCV (Final) payment. Some companies will assist you with this.
Insurance Terminologies Defined
In the property and casualty insurance industry, Actual Cash Value (ACV) is a method of valuing insured property, or the value computed by that method. Actual Cash Value (ACV) is not equal to replacement cost value (RCV). ACV is computed by subtracting depreciation from replacement cost.
You have a fire loss at your home that was built in 1980. The fire causes $100,000 RCV in damages. The insurance company deducts $30,000 in depreciation from the RCV of $100,000 and issues an ACV payment of $70,000.
You would only be able to recover the depreciation of $30,000 if you incurred that expense over the ACV payment of $70,000. The insurance company would require additional documentation (i.e. receipts, contractor’s invoices, and/or a completion inspection) before the recoverable depreciation could be paid.
The deduction based on the age and useful life of that item(s).