5 Things You Should Know About Your Insurance Company And Getting A New Roof

Receiving damage to your roof as a result of a storm can be a daunting and stressful event.  When this happens we tend to immediately think that the insurance companies are the professionals and they should be able to help through the process and make sure that the homeowner is taken care of.  

While the majority of the time this is true, it is important to remember that the insurance company is in the business of making money.  Even though they have a responsibility to pay out on your claim, that doesn’t mean that they won’t try to do anything and everything they can to pay out as little as possible.  Here are some things to remember when dealing with the insurance company.

1. You are in charge, not the insurance company.  

You pay your premiums which means the insurance company works for you, not the other way around. Period.

2. You don’t have to get three bids for a roofing project.  

The insurance company is required to pay fair and honest prices for replacement of your roof based on averages from across the country.  This means that if you get bids then you are simply finding the cheapest option for the insurance company not you.  

When the insurance company paid out on your claim they will figure out a dollar amount based on national averages and then they will subtract your deductible from that amount.  Once the deductible is subtracted they will then apply any depreciation that can be calculated for that specific structures age.  

At that point the insurance company has a set amount of money they will be paying you so if you go with the cheapest contractor then you are simply saving the insurance company money because your deductible is always the same, choose who you want to do the job and go with that company.  

Choose someone you trust.  When its time to choose the contractor remember, most roofing contractors can get any material you want, the difference is how much the contractor cares about you and how well the job is done.

3. Your deductible is your responsibility.  

Contractors that agree to cover deductibles are short changing the insurance company and the other homeowners.  Unfortunately roofing contractors, especially in Oklahoma, are finding that in order to compete for work they must lower their standards and cover a homeowners deductibles if they want to win the job.  When you agreed to the policy with your agent you agreed to be responsible for your deductible amount.  

Roofing contractors are entitled to earn a profit on a job and when they agree to absorb a deductible then that virtually eliminates the profit margin for their company.  Sadly, because this practice is so prevalent right now, homeowners are expecting roofing contractors to cover deductibles which makes it very difficult for an honest roofing contractor to compete.  

If you had a fire and had to replace your cabinets in the kitchen would you ask the carpenter to cover your deductible?

4. Your insurance company can afford to replace your roof. 

It is not going to break their bank.  In Oklahoma, the average yearly insurance premium is $1,564 (TulsaWorld, April 3rd 2014).  

If you keep your insurance company for 10 years you have paid them $15,640 in premiums.  If a new roof costs you $9,500 to replace, they have profited $6,140 just on your policy alone.  

5. Preferred contractor means preferred for the insurance company, not for the homeowner.  

When an insurance company asks you to use a preferred contractor they are asking you to use a contractor that has agreed to cut their rates and give the insurance company a better deal in exchange for leads from their customers.  

The insurance company will promise longer warranties with a preferred contractor but the contractor should provide a sufficient warranty on their own.  

This is another tactic for the insurance company to pay less money for your claim.  If the contractor is agreeing to do the work for less money, then they are making up the difference in other ways.  

Choose your contractor based on a referral from other friends and family, or based on their involvement in the community.  Again, “preferred” is not helping you, it helps the insurance company.

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Jake Carey

Big Dog Roofing and Construction, LLC

OKLN# 80002179

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