FAQ Confirm Phase

Answer:  With insurance claims your out-of-pocket cost is your insurance deductible. 

Upgrades:  You may have chosen to upgrade products and/or warranties, if you did these costs would be out of pocket costs. Any requested upgrades will be in writing and identified on your signed contract.

Deteriorated Decking:   In rare instances we will encounter rotten/deteriorated decking. It’s important that the new roof has a suitable surface to fasten to.  This means that sometimes we have to replace plywood on your existing roof deck, it is usually only a couple sheets.    This does not happen often but we do want to make you aware of it. 

If you have further questions please contact your Account Manager, they are here to walk you through this process.

Answer: The original insurance estimate (the Statement of Loss) provided by your adjuster is a great starting point, but it doesn’t always cover everything needed for the project.  Reasons for this are:

• Insurance adjusters may not be as familiar with local building codes and/or manufacturers installation guidelines as we are.
  • Sometimes your adjuster does not live in this area, adjusters are often moved around the country as needed.
• And sometimes things are just missed….roofing systems are complex, and often no two roofs are exactly alike.
  
  

At Core, we carefully inspect and document the existing conditions of your roof. We ensure that any additional items we request from your insurance company are necessary due to code requirements, manufacturer guidelines, or pre-existing issues that may have been missed in the initial estimate. As your partner in this process we make sure your project is done right and according to local building codes and manufacturers guidelines.

Answer: These line items are covered under the condition that they are “Paid When Incurred” (PWI). This means that your insurance company has agreed to cover them, but this work will not be paid until the work is completed, and they will only release payment if the work is completed. These “PWI” funds are never part of your initial insurance check(s), but rest assured these funds will be released later in the process.

Answer:  The amount listed on your contract is a budget estimate based on the initial visual assessment of your home. 

However, our contract is based on the final insurance-approved amount, not just the initial budget estimate.  Throughout the process, additional costs arise due to necessary supplements—both before and after the work is completed.  These supplements cover things like hidden damages, required code upgrades, or work required due to manufacturer installation guidelines, all of which your insurance company may approve as part of the claim.  The final amount is determined and approved by your insurance provider, and we complete the work accordingly.

Answer:  This is probably the most confusing part of the claims process.  Remember, we are here to help, we want you to feel comfortable with the process, so if you have more questions please reach out to your Account Manager. 

When you file a homeowners insurance claim, you may see three key terms on your estimate: Actual Cash Value (ACV), Replacement Cost Value (RCV), and Depreciation. These terms determine how much your insurance company will pay for repairs or replacements and when you’ll receive the funds.

What is Depreciation?

Depreciation is the reduction in value of your property over time due to age, wear and tear, and use. Insurance companies calculate depreciation to determine the Actual Cash Value (ACV) of your damaged property.

What is Actual Cash Value (ACV)?

ACV is the current market value of your damaged property after depreciation is deducted. This is the amount your insurance company will initially pay after a covered loss.

Example:

• You installed a roof 10 years ago for $15,000.
• Over time, it has depreciated by $6,000 due to age and wear.
• Your insurance company pays $9,000 upfront in your initial check(s), this is the NOTE-Your deductible is taken out of this check amount, see below for Real World Example

ACV Real World Example with your deductible:

• $15,000 Replacement Cost Value (RCV)
• Less $6,000 for Depreciation
• Your ACV amount then is $9,000 ($15,000-$6,000 = $9,000)
• Less $1500 for your Deductible (Deductibles vary, please reference your insurance statement of loss for your deductible amount)
• Insurance Company issues ACV check for $7,500

What is Replacement Cost Value (RCV)?

RCV is the full cost to replace your damaged property with new materials of similar kind and quality, without deducting for depreciation. If you have an RCV policy, your insurance company will pay the difference between ACV and RCV after repairs are completed.  This is why your initial check is less than the total claim amount.

How It Works:

1. The insurance company first pays the ACV amount (what your property is worth today).  And remember the first check will also be less your deductible.
2. The depreciation amount is held back temporarily.
3. Once repairs or replacements are completed and proof is submitted, the insurance company releases the recoverable depreciation, covering the full RCV amount.

Example without your deductible:

• The cost to replace your roof in today’s dollars is determined to be $26,000 (the RCV).
• The insurer initially pays you $18,000 (the ACV)
  • The remaining $8,000 is depreciation, which is recoverable only after work is completed.
• Once we provide proof of repairs, the insurer releases the $8,000 depreciation, bringing your total payout to $15,000.

Example WITH your Deductible

• The cost to replace your roof in today’s dollars is determined to be $26,000 (the RCV).
• The insurer agrees to initially pay you $18,000 (the ACV),
  • The remaining $8,000 is depreciation, which is recoverable only after work is completed.
  • The insurance company always withholds your deductible from this initial ACV check. If your deductible is $1,500 this amount is withheld.  Deductibles vary, please reference your insurance statement of loss for your deductible amount.
  • So the first check you receive would be for $16,500.
• Once we provide proof of repairs, the insurer releases the $8,000 depreciation, bringing your total payout to $24,500.

                        $26,000 RCV

                        (Less $8,000) in Depreciation

                        (Less $1,500) for your Deductible

                        Initial ACV check from insurance to you then is $16,500

                        Your first check to Core is for $18,000

                        ($16,500 ACV amount PLUS your deductible of $1,500 = $18,000)

                        Final check from insurance to you is $8,000

Your second check to Core is for $8,000

If you’re still unsure just give your Account Manager a call and they will be happy to review