Roofing
Here’s some things to look for:
- Insurance coverage (make sure to call the number listed on their Certificate of Insurance (COI). Some roofers will apply for insurance, get their COI, and then immediately cancel their policy)
- License
- Certifications (The Good Contractor’s List is a great resource – less than 1% of roofing companies in DFW qualify to be on the list)
- Reviews – overall star rating and number of reviews
- See if they’re a part of the BBB and check their rating
- Check how much experience they have (BBB will say when their company was founded – we usually tell homeowners to look for 5+ years)
- See if they have a physical office that you can visit- this means they are most likely not a storm chaser
Technically, no. The state of Texas does not provide a license and does not require roofers to have a license. This can be problematic because “Storm Chaser” companies pop up and do not have any experience with roofing. But, the Roofing Contractor’s Association of Texas does provide licenses to roofers who qualify for it, so it’s a huge plus if a contractor has this.
In DFW, the most common way that roofs get damaged is by hail. They can cause holes in your shingles and let water in, causing leaks. If left untreated, it can cause significant damage to the interior of your home, like wood rot, mold, etc. Additionally, if you don’t remedy it in time, your insurance company may not cover it because of negligence. Water can make its way into your house through any opening. Common causes of leaks are vents that have been damaged, flashing that has pulled away from the house, silicone caulking that dries out over time (usually life on silicone is 3-5 years), chimney caps and flashing around the chimney, siding that has small areas where it is rotting through, and many more. Since many of the flashing issues are not covered by the insurance carrier for roof replacements, it is important to have a qualified roofing contractor out to troubleshoot a leak as soon as you notice it.
As of September 2019, paying a homeowner’s insurance deductible is illegal. It comes with a Class B Misdemeanor for both the homeowner and the contractor (whether the homeowner was ignorant to the contractor’s actions or not). It can also come with 180 days in jail and a fine of $2000, also for both the homeowner and the contractor. So, no, we do not cover deductibles!
This went into effect because in the past, roofers who did this cut corners on the roof replacement in order to offset the deductible.
10 hits (damages) in a 10 ft x10 ft square. An adjuster is looking for a specific number of impact marks within a 10’x10’ square. Each carrier is a little different but most range from 7-10 marks. If they find this, they will take pictures and that side or slope of the roof will be covered. They need to find damage on each side to qualify. They will also look for impacts on fence, gutters, soft metal ventilation and caps, etc. The shingle replacement on a roof is the most expensive aspect and if there is damage then it will far exceed your deductible.
Roofing Contractors should have a minimum of General Liability Insurance (most common coverage is $1 Million per occurrence/ $2 Million Aggregate) However there are some products that the best will have…
Workers Compensation – Pays for injuries sustained for workers in the course of job related duties
Commercial Auto – Pays for coverage of vehicles that are use for Commercial or Business use.
Bonding – Primarily used for large commercial projects and is almost never applicable for residential roofing
Insurance
Replacement Cost Policy (RCV) – pays the full amount for coverage of damage resulted from a covered peril. The first check is typically the depreciated amount and once the repairs are completed and proper documentation is submitted then the insured is given the “recoverable depreciation” which provides the remaining portion necessary to pay for the new roof.
Actual Cash Value (ACV) – pays the depreciated amount for coverage of damage resulted from a covered peril. No “Recoverable Depreciation” is paid for these repairs/ replacement. Even on a RCV policy there may be certain aspects of the claim that do not qualify for replacement cost coverage (ie. many fence repairs or “other structure” are considered ACV.
They usually don’t cover wear and tear. Insurance pays on a “Per Occurrence” basis for damage which means that they will ONLY cover items that were damaged from the specific loss on a particular peril (peril= cause of loss). If the items seem to have been caused by a long term issue it is deemed wear and tear or maintenance issues. Also, there are many aspects of a roof that are typically not covered by the insurance carrier if they don’t determine that it has damage. Most notably regarding this exclusion is flashing. Many times counter flashing and step flashing is not included and will wear out over time.
Insurance controls the pricing by inputing the replacement scope into a program called Xactimate. This program gives an “average” based on the area where the repairs are completed and give specific allowances for items replaced. If there is a discrepancy in the scope then many items needed can be missed. It is important to note that it is an insurance paid coverage so in the same way that a doctors office must bill the insurance company specific to the coding for each item, the roof replacement must be submitted within the invoicing restrictions set by the carrier. If we do not have the scope of work then it is likely that items will not be covered by the insurance carrier and the homeowner would have to pay out of pocket. Just because they gave a total of $18,000 for the roof replacement, if invoiced incorrectly, the homeowner may only receive $10,000.
You should expect to pay your deductible and, depending on your coverage, possibly your recoverable depreciation as well.
Nope! Actually, in many cases, it may go down. Many insurance companies give a “new roof discount” off of your premium. Hail damage is considered a catastrophe loss (or act of God) claim which in and of itself will not effect your rates. You may see some rate change after a season based on the carriers profitability within your area. This should incentivize a homeowner to get the repairs done. Basically your rates are most likely going up anyway and the best way to keep costs manageable is with a new roof discount.
Ventilation/Energy Efficiency
In short, make sure you have equal amounts of intake and outtake. If you have any questions about this, feel free to reach out, we’d be happy to help! There are a lot of different options from Static vents (non moving) like slant back vents all the way up to power attic vents that have a can that kicks on when a certain temp is hit in the attic.
In short, not really. Just make sure you have proper ventilation.
Billing
The homeowner will typically receive the first check in the mail for a portion of the total claim amount. This first check is typically calculated by taking the total claim amount, minus the deductible, minus a depreciation amount based on the age of the damaged products. Once all the work is completed, Striker Roofing & Construction will send in the final invoice to the insurance carrier; the homeowner will be notified of this submission. If the policy is an RCV policy, the second payment will be received once work is complete in the form of recoverable depreciation.
Most homeowners policies have two deductibles. One is for hail and wind damage to a property’s roof and the second is for “all other” causes of loss covered by the insurance policy (ex: water damage). MOST HOMEOWNERS ARE NOT AWARE OF THIS DETAIL. Check the declaration page on the policy to see what the deductibles are. If the deductible is a percentage, it typically means a percentage of the total value of the property (Coverage A Amount). For example: a $200,000 insured property value with a 1% deductible means the homeowner will always pay the first $2,000 of every claim. The deductible is a homeowner’s contractual owed portion of a claim payout. In September of 2019, House Bill 2102 took effect which allows insurance carriers to obtain proof of the deductible payment before releasing the depreciation (second) check. For more information regarding the specifics of this new regulation please consult with your Striker Roofing & Construction Representative.
This is the amount of the product that has already been used based on its current age. For example: a 20 year warrantied roof shingle that is 10 years old has been used for 50% of its life. Therefore, the first check for the insurance claim would be reduced by 50%. Most homeowners have replacement cost value (RCV) policies, which means that the depreciation amount will be received once the work has been completed and proof has been received from the contractor that the deductible has been paid. If the policy is an actual cash value (ACV) policy, the depreciation amount will not be recovered by the homeowner. The homeowner will have to pay for the value that has already been used regarding that product. Check the declaration page on the policy to see what type of policy was purchased.
If the homeowner has a mortgage, the check may be payable to the homeowner AND the mortgage company. Call the mortgage company to find out their procedures. If the home does not have a lienholder or mortgage interest, then the check will typically be made out to the homeowner. Make sure that you DO NOT sign the check before sending it via mail to the mortgage company, unless advised by the mortgage company to do so. Check the mortgage company’s policies early on in the process to make sure there is time to have the first payment issued to you.
Payment to your contractor depends on you and your contractor’s agreement. You can endorse the insurance checks over to your contractor or deposit the check(s) into your account and pay your contractor from your own bank account. You may also have an electronic transfer option.
At Striker Roofing & Construction, you will be sent 2 electronic invoices (one for the RCV minus the deductible and one for the deductible) approximately 1 day before your roof replacement is scheduled. These invoices combined will be for your total contract amount (minus any possible supplement payments). Your first payment (which includes deductible) as noted on your contract is due the day the roof is completed. You can make an electronic payment from the invoice that has been sent to you or you can give a check to your contractor at the end of the day your roof is completed.
Final payment is due once all work on your contract for your roof replacement is completed. You can make an electronic payment or mail in a check. You will receive communication regarding final payment from a representative in our billing department.
The check for your claim is written to all parties with a financial interest in your home. Typically, when you took out your mortgage you agreed to report property losses to your insurance and mortgage companies. You also gave your lender the right to determine how and when your check is released to repair your property. The mortgage holder owns the property with you and will want to make sure the money is used to make the proper repairs and not for other things. As you can imagine, in today’s economy, there has been quite a bit of fraud or non-repair of insured losses. The amount of loss to your property will determine the mortgage company’s steps in processing your claim checks.
Getting your check endorsed by your mortgage company can be a longer process than most clients would like. Each lender will vary to a degree in the requirements for the endorsement. The process can sometimes require more paperwork. The best thing you can do is to notify the mortgage company and ask them the easiest way to get the check endorsed so that repairs on your home can begin. If there is a branch location near you, often it is as simple as walking in and getting the signature. For others a certain amount of documentation is necessary for the release of funds. Here are the most common mortgage requirements and how you, as a customer, would find them:
- Signed contract between you and your contractor (provided by your contractor)
- Insurance adjuster loss report (Job scope of loss provided by the insurance adjuster)
- Certificate of completion signed by homeowner stating work has been completed (form provided to the homeowner by the mortgage company)
- Waiver of lien; releases the mortgage company and all financial interests from a construction lien filed by the contractor (provided by the mortgage company)
- IRS form W9 or a similar form (provided by the lender). This form helps the lender establish an account to send check to your contractor and tax forms at year end; a physical address MUST be on the document.
All insurance companies are a little different in how they issue payment. Typically, the claims payment will include three initial checks.
- Net Claim -This is the amount of the repairs to the dwelling, minus the depreciation and the deductible.The remaining “recoverable depreciation” will come AFTER the repairs have been completed and the final invoicing paperwork has been received by the insurance carrier.
- Other Structures -This is typically to cover the cost of detached structures such as fencing, sheds, and non-attached patio covers. These items will normally have all or some of the depreciation listed as “Non-Recoverable”. That means that you will receive less money than what the repairs will cost to have done. For example, if $1,500 in funds are allocated for fence staining, but it is depreciated by 40%, the customer will only receive $900 (or enough money to repair 60% of the fence). The depreciation is normally factored per line item based on the age of the item in question.
- Personal Property – The payment will be the Actual Cash Value of the personal property that was damaged, but if there is recoverable depreciation, a homeowner may be able to collect the recoverable depreciation amount by sending in receipts of the proof of purchase.
Any “recoverable depreciation” will be paid to the homeowner with the proper supporting documentation from the general contractor. After the work has been completed, Striker Roofing & Construction will submit documentation to your insurance carrier indicating the scope of work has been completed. This check will typically come within 10-14 business days after this documentation has been received by the insurance carrier. The homeowner is responsible for making sure this payment is sent to them and pay Striker Roofing & Construction within a timely manner. Once a homeowner has received the recoverable depreciation, please make the final payment. All paperwork and communication regarding the invoicing and final billing will be handled by one of our billing team members. It is important to note that with the new insurance regulation (effective September 2019) that recoverable depreciation will ONLY be paid once the insurance carrier has received specific documentation that the full deductible has been paid to the contractor. If this request has not been fully satisfied then no recoverable depreciation will be paid for the claim.
This is a document that allows our company as contractors to speak with your insurance carrier regarding your claim without your insurance carrier having to get permission for each question. It is not an assignment of claim.
Your insurance policy that covers repairs to your home has specific limitations that are outlined in your policy. These limitations vary among insurance carriers and it affects the amount of compensation that a carrier will provide for certain items. Any items that may need to be fixed throughout the construction process will be discussed with the client. One common supplement that is rarely covered is damage to the decking (plywood). Since insurance claims are made on an “Occurrence Based Policy”, the rotting wood most likely was caused by long term moisture and not a single hail incident. Striker Roofing & Construction will document the damage and send it in to the insurance carrier, but it most likely will not be approved. In these cases, the client will be responsible for payment of the repairs. Any structural repairs will be communicated with the client for approval. At Striker Roofing & Construction we take our duty to responsibly supplement claims very seriously. It is important to understand that the insurance carrier has contractual obligation to give the full replacement cost for repairing your home back to pre-storm conditions. Insurance carriers will often request documentation or proof to show that the additional expenses are necessary for the homeowner to have the work done properly.
During the construction process, additional damage may be discovered by the contractor. In this case a request for supplemental funds will be made to your insurance carrier with the proper documentation.
A supplement is a charge or charges that needs to be added to a claim for items that
may be omitted, overlooked, underpaid, or discovered after work begins.
Supplementing a claim is standard practice and insurance companies prefer to get notification of supplemental request early rather than late in the project. This isn’t always possible, as some issues only become evident during construction. When a contractor is installing a roof, they may not wait on insurance approval for a supplement. They will do the work needed, and then, after the roof is complete, file a supplement. This is not out of the ordinary, since contractors do not want to leave your roof open and risk additional damage due to rain or wind.
Based on their findings, the contractor will work with the insurance carrier to present the items for supplementation. They will identify each item to be supplemented, write an explanation and, in most cases, support their findings with pictures, labor/material costs, and technician reports. While our
contractors DO NOT file frivolous supplements like many of our competitors, not all justifiable supplements get approved. The approval process comes down to the interpretation of the policy by the adjuster.
This interpretation can be subjective and can vary from adjuster to adjuster, insurance
carrier to insurance carrier.
However, there will be an agreement with your roofing contractor that they will receive the supplement money if the insurance carrier approves a supplement.The homeowner does not pay for supplements not approved by the insurance carrier, unless it has been approved through a signed
change order. The only exception would be if the damage found would cause further damage to the roof, structure, or interior. The refusal of Striker Roofing & Construction performing the repairs by the client would result in voiding all warranties provided by Striker Roofing & Construction.
Once the insurance carrier approves a supplement, the homeowner will receive a notification and a new/revised “Summary of Estimate” from the insurance carrier. This is when homeowners may feel concerned and confused. Below is an illustration of the financial transaction of a supplement, using a side-by-side summary of an estimate spreadsheet (See Chart 1: Side-by-Side Financial Effect of a
Supplement).
The key things to notice are:
- Even though the Replacement Cost Value (RCV) increased from $10,598.17 to $13,305.62, the out of pocket deductible that the homeowner is responsible for in the amount of $3.454.00 in this
example did not go up. - However, the balance owed did go up by the amount of the Net Supplement in the amount of $2,150.96, but the final check received will also go up by $2,150.96. Therefore, the money exchange
nets itself out. - The total client out of pocket illustrates that even though the amounts change from line-to-line, the financials result is the same net effect.
