A lack of understanding can go a long way to postponing or even reducing the benefits of insurance claims and other important documentation. Being able to read a homeowners insurance claim can be the difference between a large payout and something that disappoints you and your family. It’s always good to find a qualified insurance specialist to walk you through the process, but that doesn’t mean all homeowners will want to work with someone, nor does it mean you won’t benefit from a good understanding. Let’s walk through how to read a roof insurance claim, so you’re prepared to handle any residential roofing concerns that come about.
Most roof insurance claims will be on a software called Xactimate, which facilitates the creation, filling out, and printing of the forms. Xactimate researches market prices for materials, labor, and other costs that go into your claim estimate. Your roofing contractor will likely also use this software to formulate estimates for replacements, repairs, or installations.
Keep in mind that plenty of other factors go into your claim, including previous work on your roof and regional rules and requirements. The software breaks down each cost on a summary page, which gives homeowners a better understanding of what insurance companies will pay — if they can properly read it.
The claim summary is an outline that explains aspects like the cause of damage, materials and labor, deductibles, recoverable depreciation, and other adjusted prices. While some claim summaries include additional information, most will have these topics (and some more we’ll get into) listed in line items for you to digest.
- Line Item 1 — This typically includes the total cost of materials and labor and is usually the line item total before tax.
- Line Item 2 — This line is simply the sales tax of the materials, based on whatever percentage is applicable for your state.
- Line Item 3 — This item lists the recoverable depreciation and is often the biggest, boldest number listed. It explains the roof repair costs needed to get your roof back to its original condition.
- Line Item 4 — On this line, you’ll see the calculated depreciation or the cost of the roof subtracted by its salvage value.
- Line Item 5 — The actual value of your roof is listed here, which is the roof replacement cost subtracted by depreciation.
- Line Item 6 — Your deductible — or the number you need to pay before the roofing company begins — is listed here.
- Line Item 7 —This is the net claim amount, or what the insurance company first sends out to start the project.
- Line Item 8 — Any other claims or losses are listed here.
How to Read the Spreadsheets
There are more to the spreadsheets than just these line items. Each column on the spreadsheet will likely come with an item description and quantity, unit price, depreciation value, and actual cash value.
The item description simply lists each individual item that is being repaired on the roof. The item quantity specifies the exact amount of each piece there is. The unit price is the market cost of each item, which usually fluctuates a bit each month. Both materials and labor are included here. The depreciation value will compare the price of your roof today with the cost of the roof when first purchased. Finally, the actual cash value will be broken down by item and explain how much you can expect to receive from the insurance company based on the value of the roof.
Get Insurance Claim Specialists That Can Break Things Down Step-By-Step
When reading a roof insurance claim, homeowners should do their best to thoroughly understand each aspect on the page. Missing out or failing to interpret something for what it is can lead to unfortunate results, mismanaged expectations, or a failure to receive the full benefits of an insurance claim.
That’s why you should turn to the experts at Countrywide Custom Homes and Roofing for homeowners insurance mediation to help break down all the costs and terminology associated with their claims. Call Countrywide before you make your claim, and we’ll run down the risks and rewards and team up with you and your insurance adjuster for unmatched expertise throughout the process.