Texas Laws on Insurance Fraud
Common Insurance Claim Questions
Why is my check less than what my roof will cost?
The estimate is broken down into three parts. There are two main deductions taken off of the insurance estimate of what your roof will cost. The first is your deductible and the second is the depreciation.
What is Depreciation, RCV, and ACV?
RCV stands for Replacement Cost Value and it is the current retail cost to replace your damaged items.
ACV is the Actual Cost Value, which excludes the depreciated amount. For full definitions, click here.
For example, assume a roof in year 10 of an expected 20 year life is totaled by hail and the cost to replace the roof is $10,000. The RCV would be $10,000 and the ACV would be $5,000 (10/20th of $10,000). The difference between the two, $5,000, is the depreciation which is additional funds you will receive with an RCV policy. Generally depreciation is paid after you submit a final invoice.
Is the adjusters calculation of my replacement cost set in stone?
No, on occasion the estimates are not correct. If something is left off or incorrect, Mill Creek Roofing will submit a supplement in order to account for what is needed to properly replace the items on the estimate.
What is the cost to the homeowner?
It is always your deductible plus upgrades if any.
I have shopped around and found a contractor that will do the job for less than what the adjuster has calculated. Can I use this savings to reduce my deductible?
No, your deductible always comes first. You only save your insurance company money by choosing a cheap contractor. When you submit an invoice that is lower than what the adjuster calculated, this will lower the amount of depreciation you will later be paid. Click here to explore the Texas Laws about deductibles.
Some contractors have said they will “cover my deductible”. How do they do this?
It is very illegal to cover a deductible and a reputable contractor will not do this. There are many laws that cover this subject and they can be viewed here.
How long does it take to get the additional funds once I submit an invoice to my insurance carrier?
It could take a few days to a few weeks depending on how busy they are at the time. You are not required to pay these funds to Mill Creek Roofing until you receive them.
If I file a claim, will my premiums go up?
If you live in an area where there were many claims due to storm events, it is likely everyone in that area will see a rate increase regardless of whether they file a claim (or not).
How much will it cost me to replace my roof through insurance?
With homeowners’ insurance, you will only be paying the deductible and any upgrades you choose.