Understanding Insurance Estimates: Commonly Used Terms

What’s the first thing homeowners should do after a storm has passed? Once it’s safe to go outside, they should take pictures of the signs of storm damage. They’ll need these when they file storm, hail and wind insurance claims down the road. Once your insurer receives proof your roof was damaged by a storm or extreme weather event, it will send an adjuster who’ll assess the damage and calculate your insurance payout. 

We recommend having a roofing contractor at your home when the adjuster visits. That way, your contractor can point out details the adjuster may have missed. After all, it’s not uncommon for adjusters to have busy schedules, which is why there might be a chance that they’ll overlook something. Once the adjuster is done assessing the extent of the storm damage, they’ll give you a statement of loss, which itemizes all of the repair costs. 

Here’s what the terms on your statement of loss mean: 

Commonly Used Terms 

  • Replacement cash value (RCV) – The RCV is the total amount for the insurance estimate. Keep in mind that it’s just an estimate. The final settlement is calculated by subtracting your deductible from the contractor’s invoice. 
  • Depreciation – This refers to the amount that won’t be released until roof repairs or residential roof replacement is finished. 
  • Actual cash value (ACV) payment – The ACV is calculated by deducting your deductible and the depreciation from the RCV and is the first insurance check you’ll receive once your claim has been approved. In most cases, the amount is just enough to get the roof repairs started. 
  • Supplements – Should the adjuster overlook minor storm damage, your insurer will make adjustments to your insurance payout. 

Need Help Filing an Insurance Claim? 

Unfortunately, filing an insurance claim is trickier than it seems. If you’re having trouble filing a claim with your insurer, contact your insurance agent or a professional roofing contractor. 

Summit Renovation, Inc, a contractor with over a decade of experience, offers a wide range of professional roofing services, including installation services for metal roofs. To get a free quote, call us at (205) 994-6383, or fill out this form. Talk to us today!

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