Filing an insurance claim for roof damage should be a simple and easy process.
Unfortunately, that’s not always the case.
When filing an insurance claim on your roof, you can run into a myriad of difficulties. Storm damage has to be documented in specific ways and submitted within specific timeframes, insurance companies won’t always treat you fairly, and some roofing contractors will give you downright bad advice (like suggesting that you “pocket the difference” of your insurance settlement).
That’s why we’ve written this article - to help you understand exactly how the insurance claims process works and how to navigate it for a successful claim.
Read on to learn:
- What kinds of roof damage are covered under typical homeowner’s policies (and what kinds aren’t)
- Why an ACV policy can make a big difference in your final settlement
- Why “pocketing the difference” is insurance fraud
- A 9 step process for filing a successful insurance claim on your roof
...and a lot more.
How Roof Damage Is Covered Under Homeowner’s Insurance
Homeowner’s insurance generally covers roof damage, but it's essential to understand the specifics of your policy. Most policies cover damage from unexpected events, like storms or falling objects, under the "dwelling coverage" section. This coverage is designed to protect the structure of your home, including the roof.
However, coverage isn’t automatic for all types of damage. The extent of your coverage depends on the specifics of your policy, the cause of the damage, and whether you've maintained your roof over time.
What Types of Roof Damage Does Homeowner’s Insurance Cover?
Homeowner’s insurance usually covers damage caused by:
1. Hail and High Winds
High winds and hail can cause significant roof damage. If hail strikes dent your shingles, a storm blows off shingles or causes a tree to fall on your roof, your policy likely covers the repairs.
It’s important to note that even if a hail strike hasn’t literally blown a hole through your shingles, the damage is usually covered by insurance. Why? Because the hail strike has damaged the integrity of the shingle enough (via granule loss or significant indentation) to significantly reduce the roof’s useful life.
2. Fire
If your roof is damaged in a fire, your insurance should cover the cost of repairs or replacement. This includes damage from lightning strikes that cause fires.
3. Falling Objects
If a tree branch or another object falls onto your roof and causes damage, your insurance policy typically covers it.
What Types of Roof Damage Are Not Covered by Homeowner’s Insurance?
Not all types of roof damage are covered by homeowner’s insurance. Common exclusions include:
1. Normal Wear and Tear
Regular wear and tear, such as aging shingles, isn’t covered. Insurance is for sudden and accidental damage, not for ongoing maintenance issues.
2. Neglect
If you’ve neglected your roof’s maintenance—like not replacing old shingles or failing to address minor leaks—your insurance company might deny your claim. They expect homeowners to take care of routine maintenance.
3. Damage From Poor Workmanship
If your roof was installed improperly or using substandard materials, the insurance company may refuse to cover damage resulting from these issues. This is why it's critical to work with a reputable contractor from the start.
4. Flood and Earthquake Damage
Standard homeowner’s insurance typically doesn’t cover flood or earthquake damage. You’ll need separate policies for these types of coverage.
How ACV vs. RCV Insurance Policies Affect Roof Insurance Claims
When filing a roof damage claim, it’s essential to know whether your policy is based on Actual Cash Value (ACV) or Replacement Cost Value (RCV).
Actual Cash Value (ACV)
ACV policies cover the cost of your roof minus depreciation. This means the older your roof is, the less money you’ll receive. For example, if your 10-year-old roof is damaged, the insurance company will subtract a decade’s worth of depreciation from the payout, leaving you with a fraction of the replacement cost.
ACV policies save you money on premiums, but they’ll leave you footing most of the bill if there’s a storm, unless you have a very new roof.
Replacement Cost Value (RCV)
RCV policies, on the other hand, cover the full cost of repairing or replacing your roof with like and kind materials at today’s prices, without factoring in depreciation. While RCV policies have higher premiums, they can save you a substantial amount of money in the event of storm damage, especially if your roof is older.
9 Steps To File An Insurance Claim On Your Roof:
Filing an insurance claim for roof damage can seem daunting, but following a step-by-step process makes it manageable.
1. Note the Storm Date
Noting the storm date is critical, as the insurance requires it to validate your claim of storm damage.
2. Schedule an Inspection
If you’re able to safely climb your roof, you can inspect it for signs of obvious damage.
If you’re not a professional roofer, however, you may not be able to determine the full extent of the damage or how your insurance company will assess it.
That’s why we highly recommend getting a professional inspection by a roofing company.
Unfortunately, the claims process is often (though not always) an adversarial one, with the insurance company doing everything they can to deny your claim. Having a professional, trustworthy roofing contractor who understands how to document roof damage, navigate the claims process, and advocate on your behalf can be the difference between a fair payout and a costly denial.
3. Document the Damage
During their inspection, your contractor should mark damaged areas with roofing chalk and take photos and detailed notes. These will be crucial documentation needed for your claim. A proper report should include clear images of the damage, clear descriptions of the damage, an assessment of the roof’s overall condition, and recommendations for necessary repairs or replacement.
4. Review Your Insurance Policy
Review your homeowner’s insurance policy to understand what’s covered and your deductible. Knowing this information beforehand helps set expectations for the claims process.
5. Contact Your Insurance Company
Once you have an inspection and report from your contractor, notify your insurance company about the damage right away. Most companies have a limited time frame for filing a claim after an incident occurs. Provide them with all the documentation you’ve gathered.
6. Schedule an Adjuster Inspection
The insurance company will send an adjuster to inspect the damage.
We recommend having your contractor present for this process. They can help counter any potential underestimation of the damage and advocate for a restoration that aligns with your coverage.
7. Review the Settlement Offer
Once the adjuster has completed their inspection and your insurance company offers a settlement, it’s crucial to review the proposal with your contractor. They can critically assess the offer, comparing it with their own estimates to ensure it covers all necessary repairs.
Insurance companies use specialized software to build the scope of work for your claim. One of the most widely used tools is Xactimate, an estimating program that provides detailed pricing data. Xactimate generates detailed estimates, breaking down costs for labor, materials, overhead, and profit.
A knowledgeable contractor familiar with Xactimate can review the insurance company’s scope of work to ensure it meets legal and industry standards. If the settlement offer falls short, your contractor can negotiate for accurate compensation. They can provide additional documentation or reasoning to challenge the offer, striving for a fair settlement that accurately reflects the cost of repairing your roof.
8. Receive Payment and Start Repairs
Once your claim is approved, the insurance company will issue payment. If you have an RCV policy, you will receive the funds in two parts: the first for the actual cash value and the second for the remainder after you submit the contractor’s invoice.
9. Submit Final Paperwork
After repairs are complete, you’ll need to submit the contractor’s invoice to your insurance company in order to receive your final payout. After this, your insurance company will send out the adjuster for a final inspection.
Common Misconceptions About Roof Insurance Claims
You Can “Pocket the Difference”
Some homeowners think they can keep the difference between the insurance payout and the actual cost of repairs.
This is not only a misconception—it’s actually insurance fraud.
In other types of insurance claims, such as a claim for vehicle damage, insurers issue a payout based on expected costs and depreciation. So if you get the job done for less, you can technically pocket the rest.
But for roof damage, insurers pay the invoice submitted by your contractor. That means that, in order to “pocket the difference”, your contractor would have to commit insurance fraud: issuing the real invoice to you and a fake one to the insurance company. Needless to say, this is illegal, and if you’re caught doing it, it could result in penalties, policy cancellation, or even legal action.
You Need to Get Multiple Bids
While getting multiple bids may sound like common sense, it’s actually not necessary if you have an RCV policy. Why? For two reasons:
1. An RCV policy means your insurance company is obligated to cover the cost of your roof repair or replacement in its entirety; all you have to pay is your deductible.
2. The price of your roof is determined by industry and legal standards; it’s not determined by the private judgment of your contractor or your insurance company.
If your insurance company is suggesting that you get multiple bids, they are simply trying to lower their own costs, not yours. They may be looking for a contractor that will cut some corners, which not only offers you no financial benefit - it means you’re getting a subpar roof.
In an insurance claim, the most important factor in selecting a contractor is not the price of repairs, it’s their expertise and reputation.
The Upshot
Filing an insurance claim for roof damage can be challenging, but with the right knowledge and approach, you can navigate the process successfully. By understanding what types of damage are covered, how your policy’s ACV or RCV terms affect your claim, and following a clear step-by-step process, you can increase your chances of receiving fair compensation.
And remember, working with a reputable contractor who understands the intricacies of insurance claims can be invaluable, ensuring your roof is repaired correctly and that you’re fully covered.