Insurance Claim Information

Insurance Claim FAQs

Q. What does (RCV), (ACV) and Depreciation all mean?

RCV stands for Replacement Cost Value (RCV=Depreciation+ACV). The cost of
repairing the covered damage in today's market. Most residential policies are RCV
policies but some wood shake roof homes have an ACV rider for the roof. If you have a
wood shake roof with an ACV rider you will not be receiving the depreciation amount.
Depreciation is a decrease of the item's value (useful life) due to age, wear, or market
conditions. Your estimate may include depreciation for items & materials that are being
replaced. Once the replacement of your covered loss has been completed, you may be
able to recover the depreciation amount that was withheld depending on your policy
terms, conditions, and exclusions. ACV stands for Actual Cash Value. This represents what
the damaged items are worth after taking into account normal wear and tear, age and how
much useful is remaining (RCV-Depreciation=ACV). This is usually the amount of the first
insurance check and payment must be made within a certain amount of time by law to the
policy holder.

Q. What are the steps involved from start to finish?

Have your roof and property inspected for damage by a trained professional.
File a claim if there is damage. You will need to provide the date of the storm that
caused the damage. The claims adjuster will call to schedule a site inspection. 1st Quality
recommends that we meet the inspector and perform the inspection with them on your behalf.
We have found that by being present for the claims inspection we can point out all damage on
your behalf which prevents "low ball" estimates that have "overlooked" items. This helps
prevent re-inspections and discrepancies. Inform the claims inspector that 1st Quality will be
present for the inspection. Call us and let us know when the site inspection is scheduled so
we can be present and give us the contact information for the inspector. The inspection will
take place. Some insurance companies will provide a estimate of damage and issue a check
while at the property. Others will mail the estimate and check from the internal claims department.
We ask that you provide us with a copy of your insurance adjuster's summary report so
we can review the scope of work and check all measurements to ensure all damage is
fairly evaluated and reported accurately. We will match our contract to the work specified
in the insurance adjuster's summary report. If the insurance adjuster missed something we will
get the error approved with the insurance company (known as a supplement) and bill the
insurance directly with the final invoice. works for the insurance proceeds so the client has
no risk of a balance owed because the insurance company does not pay a supplemental item.
The initial check will be for the ACV. If you have a mortgage this check will probably be
made payable to you and your mortgage company. You will need to contact your
mortgage company and follow their procedures before this check can be deposited into
your account. This process usually takes 2-4 weeks so you should start this process as
soon as you receive the ACV check. Choose the color and type of shingle wanted. Some
HOA's will require approval if you want to change shingle colors. Have the roof replaced and
other damage repaired. Have mortgage company perform their inspection if needed.
Submit final invoice to get the depreciation and any approved supplements paid.

Q. How do I know if I hail damage?

In a hailstorm, most hail that hits your roof and house may be too small to cause any
damage. Some of the hail may be large or irregularly shaped which can cause severe
damage that may not be readily apparent and may not start to leak for some time. It's
best to have your roof inspected by a qualified professional to determine if you need to
file a claim.

Q. Will 1st Quality work directly with my insurance company and the adjuster?

Yes. We work with all insurance companies and are familiar with their procedures. An
executed Authorization of Insured allows 1st Quality to act on your behalf regarding the
claim with your insurance company. From meeting with the claims inspector on their
first site inspection, managing disputed items thru to the final invoice 1st Quality can
streamline the entire process.

Q. My insurance company issued me a check that is less than the amount of my claim,
what do I do?

Most insurance companies issue your claim money in two checks, one at the start of
work and one upon completion. The first check is usually the ACV less your deductible.
1st Quality will invoice your insurance company directly at completion of the job for the
depreciation and any supplements.

Q. What should I do if the insurance check has my mortgage company's name on it ?

Each mortgage company has its own unique policy regarding insurance payments. You
should contact your mortgage company as soon as you receive the first check to get
their procedures. It can take up to 4 weeks to be able to deposit this check so you
should get the ball rolling as soon as you get the check. You can authorize 1st Quality
to deal with your mortgage company on your behalf to insure your payment is properly

Q. The insurance company withheld depreciation on my roof. Will I get that money?

Yes if you have a Replacement Cost Value (RCV) policy. The depreciation amount will
be paid to you when the work is completed and the final invoice is submitted to the
insurance company.

Q. Why did the insurance company withhold depreciation?

There are two main reasons that the insurance companies hold the depreciation amount
until they receive the final invoice. The first reason is to make sure that you get the work
done. Past experience has shown that if they give the customer all the money up front
some people end up spending it on something else and never get the work done. The
second reason is they want to verify what the repairs actually cost by reviewing the final
invoice. If you pay less for the work than their estimate then they will pay the actual
amount of repairs less your deductible. You do not get to keep the difference between
their estimate and what the repairs actually cost if lower.

Q. On my paperwork it looks like my insurance company has already deducted my
deductible from the check they sent me?

When most people look at their insurance paperwork they are confused because they
think the insurance company deducted their deductible from the money the insurance
company has sent them. The deductible is the amount that the homeowner is
responsible for paying directly to the contractor.

Q. My insurance company said I have no hail or storm damage, but my neighbors are
getting a new roof. What should I do?

1st Quality is experienced in getting your claim handled properly. If your insurance
company stated that you do not have hail or storm damage, we would like to give you a
second opinion. After inspecting your roof closely, if we find damage, we'll take care of
the process of getting your roof re-inspected and work on your behalf to get your claim
accepted. We have been successful in getting many homeowners new roofs after the
original insurance Adjuster declined the claim. Our attention to detail during inspection
often uncovers signs of hail or storm damage that many insurance Adjusters
erroneously overlook. Often times damage is "accidentally overlooked" if it is not pointed
out by a qualified professional.

Q. The insurance is only paying for part of my roof and my neighbor's insurance
company paid for his entire roof. Why is my insurance company only paying for part of
my roof?

No two houses receive the exact same amount of damage in a storm. Your neighbor
may have sustained extensive damage and you may have received little or none. The
insurance company will only pay for the actual damages incurred. If the entire roof was
not damaged the insurance company may not pay for the whole roof. If it is border line it
always helps to have your roofing contractor inspect the roof with your insurance
adjuster to accurately assess all damage to the roof.

Q. What if your estimate is greater than the insurance company's estimate?

Usually this is because of something the insurance adjuster missed in the scope of work
to be completed. We can almost always work something out with the insurance
company. We will submit what is called a "supplement" with documentation in the form
of pictures, measurements and paperwork. The insurance company will review the
supplement and pay for the additional repairs if approved.

Q. What if there are additional costs in repairing damaged items not included in my
original claim? Will I have to pay out of pocket?

No. We work for insurance proceeds. This means that we will negotiate directly with
your insurance company for any additional costs of work we perform and will work with
their pricing.

Q. Will my rates go up if I file a hail or wind damage claim?

Insurance rates are typically raised by number of claims filed by zip code. Hail is
considered an act of God and homeowners cannot be penalized for this. You may lose
your zero claim discount but usually the lost discount is minimal compared to the out of
pocket cost of paying to repair damage.

Q. Will I have Money Left Over?

Your insurance company owes for the actual amount paid for your repairs. If you pay
less than the insurance company estimate then the insurance company is going to pay
the actual cost less your deductible keeping the difference.

Q. Is There A Time Limit To Make My Repairs?

Most insurance companies allow 1 year from the date that wind and hail damage
occurred for residential and 2 years for commercial. However some companies are only
allowing six months.

Q. How can I check the status of my claim?

You can check the status of your claim by contacting your insurance company and
providing your claim number via telephone and/or online.

Q. Can I get upgrades on my materials?

Yes but the increase in price above the insurance price is your responsibility.