In recent years, the insurance industry has taken a huge financial impact attributed to catastrophic events. For many property owners the emotional strain in dealing with repairs and replacements of a damaged home is further compounded by the frustration in trying to understand their claim documents and related summaries of damage estimates and the method in which insurance companies use to settle claims. This is one of the reasons Reynolds Roofing Systems is here. We take the part of communicating directly with your insurance company so you don't have to. So if you're in need of a roofing insurance claim assistance in Colorado Springs, CO or the surrounding areas, contact us online or dial (719) 368-7654.
By allowing our experts to handle the communication with your insurance company, you're relieving some of that frustration off of yourself. This will give you time to worry about more important things such as the health and safety of yourself and your family.
During the insurance claim process, an adjuster will inspect the property to assess the damages attributed to the covered damages. Once the roof is inspected, the adjuster will prepare an itemization of recommended repairs including fair market costs based on an adjusting database used by that company. Using this survey or database of figures the adjuster establishes a cost for RCV, also known as replacement cost value, for each item involved in repair. This RCV figure is the maximum reimbursable amount provided by the insurance company. This is to repair or replace the damaged item with a brand new part or service.
From the RCV, the adjuster will determine the projected age of the damaged items prior to the claim event. Such factors such as length and amount of use and age of the home are included in this calculation. This level of damage is then converted into a percentage value known as depreciation. Within some homeowner insurance policies, the depreciation may be classified as one of two types; recoverable depreciation versus non-recoverable depreciation. Recoverable depreciation is the maximum amount which can be recovered by the homeowner once the repairs, or replacements, are complete. Non-recoverable depreciation is not recoverable at any point in the life of the claim. Items considered recoverable and non-recoverable are defined within the loss settlement provisions of the homeowner’s policy.
Once replacement cost value (RCV) is established, depreciation is subtracted from this figure which nets a new figure known as ACV, Actual Cash Value. Actual Cash Value is the figure that is initially paid to the homeowner, less any applicable policy deductibles. ACV is not considered a final payment. Additional payments may be made representing recoverable depreciation, but only after the repairs or replacements are complete. The final check is obtained by filing all final invoices with your insurance company and completing any insurance required documentation.
As a general rule, ACV, or actual cash value, is paid for all items in which depreciation is recoverable with the exception of items such as carpeting, household appliances and personal content items. Although these items are considered non-recoverable depreciation products, endorsements can be added to a homeowner’s insurance policy, with an additional premium payment, to insure the value of these items, at the replacement cost value. In other words, with the addition of an endorsement, the actual cash value is initially paid, the depreciation is then recoverable which nets a final payment equal to the replacement cost value originally estimated by the adjuster.
For homeowners the task of recovery after a catastrophic event is emotionally stressful. It’s important that the coverage provisions of the homeowner’s policy, including optional endorsements. This will ensure a more efficient and accurate processing of the homeowner’s claim.
Reynolds Roofing Systems specializes in working with insurance claims. We work with all insurance companies and help owners get properly paid on their claims. This allows you to so restore your property to its original condition prior to the event which occurred. Call today for your free inspection and evaluation.
Questions? Please contact our sales department at (719) 368-7654 for more information.