So you have an insurance estimate…

The Insurance Estimate

This is first step in the Supplementing Process…

I am sure you are wondering what the heck all those papers mean. As I mentioned in our previous post, we call this the “Original Scope.” It is the “original” because it is not the final but rather the first of many. You can always call your project liaison to request a virtual review of the estimate to explain all of it to you. Now let’s dive into some of the nitty gritty…

The estimate you receive from your carrier outlines your property and the current scope of work the insurance is agreeing to cover. This is often missing several items and only lists repairs even though this is often not possible depending on the age and type of the roof. It also outlines the line items, quantities, prices, taxes, and depreciation.

You will see ACV and RCV. RCV is the Replacement Cost Value of your project. This means the price of each line item to be replaced new today. ACV is the Actual Cash Value and reflects the depreciated value of each line item. Like a vehicle, structures also depreciate over time. Don’t worry, you will also see the amount of that depreciation listed as Recoverable Depreciation; the amount of which is determined via the direct documentation or via rough estimation of the age of the existing roof if documentation cannot be provided. That means the carrier will pay that depreciation amount, but only after the work is completed. Most policies require the work be completed for the full replacement cost value to be received. We will take care of invoicing for this and you will not have to front any additional money beyond your deductible and the ACV amount listed on the estimate to complete the insurance approved scope work.

Now this estimate most likely has had a variety of items left off. It could currently list any thing from a handful of shingles and for an amount for less than your deductible to a full replacement depending on the insurance company, amount of damage, and experience of the adjuster. But one thing is for sure, they didn’t give away the farm on the first estimate.

No matter what it says you can relax. The important thing is that the carrier has extended coverage for anything… EVEN ONE SHNGLE SHOULD BE CELEBRATED! Your carrier has just solidified your coverage. They agree the storm date is legitimate, the damage is legitimate, and have extended coverage to the damage resulting from the listed date of loss. The only thing we and the carrier disagree on is the amount of damage and the amount of work required to restore the property to the condition it was it prior to the loss.