Insurance Claims

Handling Storm Damage with Fairness and Peace of Mind

Steps to Assess and Recover After a Storm:

Get Informed – Understand common storm damage types and your options for repair.
Select a Trustworthy Contractor – Research and choose a reliable, experienced contractor for a quality restoration.
Check for Damage – Inspect your property for visible signs of damage or arrange a professional assessment.
Work with Your Insurance – Navigate the claims process to ensure fair coverage for your repairs.
Restore with Confidence – Follow through on repairs for a full recovery, aiming to make your home as good as new with minimal stress.

After a powerful storm, it’s natural to worry about possible damage from high winds or hail. Follow these steps to move forward with clarity and peace of mind.

After a big storm, it’s normal to see brochures, business cards, and salespeople at your door—and you might even get calls from contractors. You may wonder how they got your number, but it’s all part of the rush that follows a major weather event, with contractors eager to offer their services.

Remember, there’s no need to feel pressured or make hasty choices. Unless there’s immediate, severe damage—like a fallen tree through your roof—you don’t need to rush. Take your time to make thoughtful decisions, ensuring that any repairs are done professionally and fairly. Don’t let anyone push you into quick commitments!

Step 1 – Educate Yourself

Most homeowners will only replace their roof once, if ever, and many have never filed a homeowners insurance claim. Taking time to learn about the process, what to expect, and common pitfalls can make the experience much smoother.

A reliable restoration contractor will get the job done as promised, but a truly exceptional one will guide you through every step, ensuring the process benefits you fully. Remember, roofing materials vary in quality, and not all contractors bring the same level of skill or qualifications to the job. Once repairs are completed, there’s no turning back, so invest some time in comparing products and warranties to make the most informed choice.

Key Insurance Terms You Should Know

Insurance Claim: Simply contacting your insurance company to report potential damage can be enough to start an insurance claim. Many homeowners are unaware that notifying their insurer about possible damage effectively initiates the claim process; your insurance company won’t inspect your property unless a claim is formally filed.

Adjuster: After a claim is filed, an insurance adjuster is assigned to assess your property and determine whether your policy covers the reported damage. Adjusters can be direct employees of the insurance company or independent contractors working on its behalf. They are expected to provide an unbiased evaluation based on the damage evidence. It’s helpful for homeowners to be present during the adjuster’s inspection.

Adjuster’s Report: This document, also called the Scope of Project, outlines an itemized list of repairs or replacements needed on your property. It generally includes a cover letter, item breakdowns, and sketches, as well as figures for Actual Cash Value (ACV), Replacement Cost Value (RCV), Depreciation, and your Deductible.

ACV (Actual Cash Value): Actual Cash Value represents the estimated worth of damaged items considering their age and condition before the incident. This is often the initial amount that the insurer will pay, after subtracting your deductible. While many policies cover Replacement Cost, some only provide ACV, which may come with a lower premium but covers less in a claim.

RCV (Replacement Cost Value): Replacement Cost Value reflects the expense of replacing damaged items with new ones of similar quality. Policies with RCV coverage will typically pay the difference between ACV and RCV after repairs are completed and proof of completion is provided. The RCV is the maximum payout for covered items under your claim.

Deductible:
In most property insurance policies, a deductible is the amount you are responsible for before your insurance coverage kicks in. This amount can vary based on the policy and might be a fixed dollar figure or a small percentage of your total dwelling coverage (such as 1% or 2%).

Important Note: Watch out for any contractor offering to “pay” or “waive” your deductible or offering “cash back” incentives. Texas law requires homeowners to pay their deductible as part of any property insurance claim, a regulation in place for over 30 years. Since September 1, 2019, Texas law has clarified that it is illegal for contractors to cover, absorb, or otherwise avoid charging the deductible amount. Insurance companies may now request proof of your deductible payment before releasing the final depreciation funds once repairs are completed.

Depreciation:
The age and condition of items are factored into your claim as depreciation. For example, your roof’s expected lifespan is considered to determine its remaining value. An adjuster will assess the wear since it was new, and this depreciation is used to calculate the Actual Cash Value (ACV). The sum of the ACV and the depreciation amount should align with the Replacement Cost Value (RCV) – essentially, the cost to replace it with a new roof.

Indemnity:
Indemnity is the compensation you receive for a loss, designed to restore your property to its pre-damage condition. For instance, if your roof is 15 years old, the payout is based on replacing an aged roof, not a brand-new one. This distinction is why it’s essential to understand whether your policy covers the Replacement Cost Value or just the Actual Cash Value, as ACV coverage might leave you responsible for a portion of the repair or replacement costs.

Supplement:
When additional damage is discovered during the repair process that wasn’t on the initial adjuster’s report, a supplement can be submitted to your insurer. Supplements are quite common since hidden damages often emerge only after existing materials, like shingles or siding, are removed. A thorough contractor will be familiar with your claim details and ensure that all aspects of the project are accounted for.

Step 2 – Selecting the Right Contractor

Before choosing a contractor, keep these key points in mind:

Texas Requirements: Texas doesn’t have statewide licensing or registration requirements for exterior or remodeling contractors (though your city might).
Longevity in Business: Many roofing businesses don’t last beyond 5 years, so consider a contractor with a stable history.
Insurance Coverage: Without proper general liability insurance, you could be financially responsible if there’s an accident. Ensure the contractor holds sufficient coverage.
Trustworthiness: If a contractor engages in unethical practices with insurers, they might not be fully honest with clients either.
Post-Storm Activity: After storms, many individuals may claim to be contractors without the necessary qualifications.

Doing thorough research on your potential contractor is essential. Use online resources to check their reputation, such as the Better Business Bureau profile and customer reviews. Request a copy of their insurance with you as a certificate holder and confirm their city registration if required, to ensure they can obtain the necessary permits.

Step 3 – Assess the Damage

After a storm, it’s important to assess potential damage to your roof. Some signs, like scattered shingles in your yard, are easy to spot. However, hail damage is often harder to detect from the ground, as it can crack the fiberglass mat within the shingles or cause significant granule loss, which could eventually lead to leaks.

Here are a few ways to check for possible roof damage:

Look for fallen branches or downed trees around your property.
Inspect outdoor items like yard ornaments, patio furniture, and tables for cracks or chips.
Check your gutters and downspouts for granule buildup on the ground, and look for dents on the gutters themselves.
Examine wood fencing for any signs of impact or scarring.
Inspect your car if it was parked outside during the storm for dents or broken glass, which can indicate potential roof damage as well.

If you spot any of these signs, it’s best to reach out for a professional roof inspection to prevent any further damage.Just because you don’t see visible signs of damage doesn’t mean your roof is entirely safe. While a quick ground check can highlight obvious issues, the most reliable way to assess potential damage is to have an experienced contractor conduct a detailed inspection on the roof itself. If you’re unsure or concerned, it’s best to leave it to a professional who knows exactly what to look for. Hail damage, for example, can be subtle and may lead to problems down the line if not addressed properly. An honest contractor will always inform you if no damage is found.

Be cautious with contractors who push you to sign a contract before your insurance claim is approved. This approach can make you feel obligated to proceed with them once your claim goes through, which isn’t necessary. A reputable contractor will provide a thorough assessment and be willing to assist without any upfront commitment.

Step 4 – Finalize Your Claim and Start the Restoration

When you’re ready to file a claim, reach out directly to your insurance provider’s claims department. Keep in mind that while your agent might be helpful, they typically cannot assist in filing the actual claim. Also, contractors cannot submit claims on your behalf, nor can they participate in negotiating your claim. If a contractor offers this service, it’s a red flag, as it could indicate a lack of knowledge of industry regulations or potential conflicts of interest.

Once you’ve filed the claim, an adjuster will be assigned to inspect your property. After the inspection, thoroughly review the adjuster’s findings with your contractor. If you feel that anything has been overlooked, you can request a re-inspection to ensure your claim is accurate and complete.

Once your claim is approved, you’ll move forward with the next step—discussing the scope of repairs with your contractor. Ensure you have a written agreement in place before work begins. Avoid relying on verbal agreements, as these are hard to enforce. A reliable contractor will be diligent about documenting every detail and ensuring you both have copies of the signed contract.

A reputable contractor will always prioritize high-quality materials and craftsmanship within the scope of your insurance claim. Be cautious of contractors who may attempt to cut corners by using subpar materials while still expecting the full claim payout.

Upon receiving the claim settlement, your insurance company will likely issue a check for the Actual Cash Value (ACV) minus your deductible. If your home has a mortgage, the check may be made out to both you and the mortgage company. In that case, contact your mortgage lender for instructions on how to get their endorsement. Once endorsed, deposit the check into your account, but remember, cashing it doesn’t mean you’re agreeing to the settlement.

When making payments to your contractor, use a personal or cashier’s check for a reliable record. Never sign over an insurance check directly to a contractor, especially if they ask for it. This could be a red flag indicating improper handling of the funds.

Also, be cautious about down payments. A trustworthy contractor will not ask for payment until the contract is finalized. Typically, a deposit of 20-30% is reasonable, though some contractors may require payment upon completion, especially if the job is straightforward. Make sure to use your discretion when deciding payment terms, as a financially stable contractor should be able to begin work without needing large upfront payments.