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If your property has suffered from storm damage, your roof may be one of the most compromised areas. Once your roof replacement claim has gone through your insurance company, you will usually receive two to three checks to pay for the work. Below is a breakdown explaining why your compensation is divided into multiple payments.

First Check

An adjuster will be sent out to assess the storm damage and then complete the claim. Once everything is approved, the first check comes through as the Actual Cash Value (ACV) of the damaged property.

storm damageACV is the replacement value of the structure minus any depreciation it may have had. For example, if your roof was a decade old, this will lower your ACV accordingly. This money is essentially a down payment for the recommended repairs to restore your roofing.

Second Check

The second check will come through once the roofing company has invoiced the insurance provider and the work to replace the roof after storm damage is finished. Also known as a check for depreciation, the two payments together make up the Replacement Cost Value (RCV) on your total initial claim.

Third Check

Finally, a third check may be sent for supplemental items such as repairs and inspections for building code compliance according to your municipality as well as the cost of a building permit.

The purpose of this check is also to cover additional damage that was not included in the initial adjustment. It may be used when the amount originally issued was not enough to cover the complete replacement. Some insurance carriers may combine this payment with the depreciation check.

 

In need of a roofing contractor to rectify storm damage? Turn to Formula Roofing and Remodeling. Located in Denver, CO, the roofing company provides top-notch craftsmanship for an array of roofing systems whether you require repairs from hail damage or a replacement. Their professional team will also work with your insurance provider to make the process even easier and stress-free for you. For an estimate, call the roofers at (303) 600-8696. Stop by their website to learn more about the insurance claims process.

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