How Insurance Claims Work
The Loss Statement (insurance estimate)
When the roof is totaled by the insurance company, the adjuster creates a line item estimate detailing all the work that must be performed based on the roof that currently exists. If your policy includes “code upgrade” (most do), the adjuster will include that in the estimate to bring your roof up to code. Sometimes they will note code upgrades as a “paid when incurred” (PWI) item.
The insurance company usually releases funds in 2 separate payments. The insurance company’s estimate, or “loss statement”, breaks down the cost into three categories by which they base their payouts, actual cash value (ACV), depreciation, and replacement cost value (RCV) which are defined below.
- Actual Cost Value (ACV): The amount the existing roof is currently worth. The insurance company usually releases the ACV minus your deductible in the first payment.
- Depreciation: This amount is determined based on the age of the roof and is reimbursed to the homeowner upon completion of the project.
- Replacement Cost Value (RCV): This is the total amount your project will cost, adding the ACV and Depreciation.
Too many of our competitors try to gouge the insurance company for every penny they can get with supplements on the back end of the job. Not so with IEI Restoration Company. We work with your insurance company to ensure we agree on the scope of work and code upgrades prior to install. This creates an atmosphere of trust and cooperation with your insurance company to allow us to serve you, our mutual client.
There are often unforeseen costs to the job which may require a supplement, but we have the experience to identify what those may be and work with the insurance company to handle those in the way that they would prefer.
This same experience allows us to make working with the insurance company easy for you. We prepare you by breaking down the process in a simple and comprehensive way so that you always know what happens next.
A breakdown of the Invoicing Process
- IEI sends invoice and supplements (permit) to insurance company after install
- IEI provides the insurance company with any information they require such as photos, code information, manufacturer specifications, etc.
- Insurance company reviews
- IEI follows up on check release status
- Check is released by insurance company to the homeowner
- IEI informs homeowner and sends them an invoice
The final invoice is sent to the insurance company by IEI Restoration Company within a couple days after install. The invoice is created when we receive the loss statement from you. We will have usually worked out any discrepancies or mistakes with the insurance company prior to install so that the only supplement is the building permit. Feel free to contact us for more information and request your free quote!