Modern Homes and Renovations

Your insurance company may also hold back depreciation. Depreciation is the amount of your settlement that is not paid until the allotted repairs have been made. Most policies cover full replacement cost minus your deductible. If you're not sure, ask your roofing contractor or insurance adjuster. The depreciation check is usually only cut after you or your contractor submit a final invoice. If you do not use all of your depreciation to get your home fixed, your insurance company will subtract your deductible from the final lower-priced invoice rather than the total claim originally allowed. After the final invoice is submitted, your insurance company, and sometimes your mortgage company, may want to do a final inspection to be sure that all of the work billed has been completed in a workmanship like manner with quality materials before releasing the second depreciation check.

In a storm environment, with rising material and labor cost, it may also be necessary to file for a supplemental claim to cover rising costs. When a supplemental is paid, your insurance company will agree to issue a third check beyond the original claim to help your contractor cover these rising costs. This check will be made out to the homeowner and may need the endorsement of your mortgage company as well.

Getting a cheaper estimate won't put money in your pocket because the insurance company won't release all of your money until the job is done and they get a final invoice from your roofing company.        Submitting a false final invoice is insurance fraud and can land you in trouble. When your insurance company agrees to pay your claim, they will normally cut a first, partial payment check minus your deductible. Sometimes this check is cut while your adjuster is at your home. Other times, it will be mailed to you within a week to ten days - after they complete their required paperwork.    You may be asked to get three estimates. Finding the lowest price only gets you a cheaper job. Your insurance company keeps the savings.

The first check, minus your deductible and depreciation, is usually only enough for your contractor to buy materials and get your work started. Often, the first check will be co-endorsed to your mortgage company. If your check is co-endorsed, you'll need to get a signature from your mortgage company before starting the work. If your check is not co-endorsed you can deposit it in to your bank account or endorse it to your contractor.