Can My Roofer Really Eat the Deductible

1
Can My Roofer Really Eat the Deductible?

• By SCHULTE ROOFING

2
Continue reading or move to your desired chapter
from here.
A. Overview B. Can Roofing Contractors Eat My
Deductible? This is How It Starts They Game You
such that Which Roofing Components? And
catching them gets difficult D. How Do
Insurance Companies Make Payments? 1. Actual
Cash Value Policy (ACV) 2. Replacement Cost
Value Policy (RCV) E. How Would a Roofing
Contractor Eat My Deductible? Beware of
Frauds What fraud leaves you with? F. How Can
You Protect Yourself From Fraudulent
Contractors? 1. Use a Long-Term Local
Company 2. Ask for References 3. Avoid Door to
Door Contractors 4. Get Multiple Bids
G. What to Do When a Contractor Claims They Can
Waive Your Deductible? Dont You Want to Avoid
These Situations? H. What Are My Next Steps?
3
Overview

• If your roof has been damaged and you have
  homeowners insurance, there are several factors
  that determine how much the insurance company
  will pay and what is covered.
• However, homeowners are often approached by
  seemingly trustworthy roofing contractors who
  claim they can eat the deductible on insurance
  repairs. Some roofers may also openly advertise
  Free Roofs on door hangers and yard signs.
• Although a free roof repair sounds appealing,
  this practice is illegal and considered
  fraudulent.

4
Can Roofing Contractors Eat My Deductible?

• In the roofing industry, some roofing contractors
  will go to a homeowner and tell them that theyll
  eat their deductible. This approach would mean
  that the homeowner doesnt need to pay a cent to
  repair their roof.
• However, theres not a legal way to do this.
• As such, when a roofing company wants to eat your
  deductible, they will actually reduce the price
  of the roofing system they build by the cost of
  the deductible. For this reason, they cannot
  build the roof for the price that they state.

5
This is How It Starts

• The roofing company will go to a roofing
  manufacturer like GAF or CertainTeed and get a
  quote for the roofing system your home requires.
• For example, lets say your new roofing system
  costs 10,000, and your deductible is 1,000. The
  roofer will exclaim they can repair your roof for
  9,000 and that theyll eat your deductible.
• Although this sounds exceedingly appealing, the
  roofing system they buy will be around half the
  cost of your roof.
• So how will the roofing contractor take the
  9,000 and eat your deductible?

6
They Game You such that

• They will replace components of your roofing
  system with inferior products that are much
  cheaper. While you think you are getting the same
  roof, this isnt the case. You either get no
  replacement components or more inexpensive
  replacement components.

7
Which Roofing Components?

• Think about all of the components of a roof
• Shingles
• Sub-shingle layer
• Weather layer
• Ice and water shield
• Roof deck
• Rafters

8
Catching them gets difficult because

• Since there are so many layers, the roofing
  contractor may choose not to include a few of
  them. As such, your new roof will wear out much
  faster, and your warranty will be voided as well.
• When a roofing contractor claims they can eat
  your deductible, its best to avoid them and look
  for an honest and trustworthy roofing company.

9
Lets Move On To Insurance Aspects
10
How Do Insurance Companies Make Payments?

• There are two ways that an insurance company
  makes payments during the insurance claims
  process. Lets discuss these.
• Actual Cash Value Policy (ACV)
• Replacement Cost Value Policy (RCV)

11
1. Actual Cash Value Policy (ACV)

• If you have an actual cash value policy or ACV,
  the insurance company will pay you the entire
  cost of the roof replacement minus the
  depreciation and your deductible.
• Lets walk through an example.
• 10,000 quote to repair your roof
• -4,000 in depreciation
• -1,000 deductible

12
So ACV Leave You Here

• As such, you are only left with 5,000 to get
  your roof repaired. In this scenario, a roofing
  company that claims they can eat your deductible
  may use even more cost-cutting methods to repair
  your roof.
• This approach occurs because they will need to
  pocket some of the fees themselves. Actual cash
  value policies typically offer lower premiums,
  meaning lower payouts.

13
2. Replacement Cost Value Policy (RCV)

• If you have a replacement cost value policy or
  RCV, you would be paid the full price of the roof
  replacement quote minus the deductible.
• Heres an example of RCV
• 10,000 quote to repair your roof
• -1,000 deductible

14
RCV Becomes More Attractive

• In this scenario, youll be left with 9,000 to
  repair your roof. Roofing companies who claim
  they will eat your deductible are looking for
  homeowners with RCV insurance. This arrangement
  means they have more leeway to pocket the
  difference from their cost-cutting techniques.

15
How Would a Roofing Contractor Eat My Deductible?

• One method roofing contractors can use is giving
  you an estimate thats higher than the actual
  cost of repairing your roof. The roofing company
  will then use the extra funds paid by your
  insurance company to cover the deductible.
• However, there is more information for adding to
  this chapter.

16
Beware of the basics

• Some roofing contractors may offer credits or
  rebates in the amount of your deductible. This
  approach is illegal.
• Roofing contractors who claim they can waive your
  deductible will send false information about the
  cost of repairs to your insurance company. This
  tactic is considered fraud and is highly illegal
  in most states in the United States.
• When a contractor purposely inflates an estimate
  to cover a deductible cost, its considered
  insurance fraud. There are substantial criminal
  penalties that impact all parties involved if
  this occurs.

17
What their fraud leaves you with?

• Consider the principle behind a homeowners
  insurance policy. In essence, an insurance policy
  is a contract between a homeowner and an insurer.
  This contract authorizes homeowners to pay an
  annual premium to make sure theyre financially
  protected from property damage, less the cost of
  the deductible.
• In turn, the insurance company is protected from
  paying the homeowner if the homeowner breaches
  their side of the contract. When a roofing
  contractor commits insurance fraud, the contract
  is breached, and you may be susceptible to
  covering the cost of repairs yourself.

18
How Can You Protect Yourself From Fraudulent
Contractors?

• As youre looking to get your roof repaired,
  there are a few key steps you can perform in
  order to avoid fraudulent contractors. These
  include
• Use a Long-Term Local Company
• Ask for References
• Avoid Door to Door Contractors
• Get Multiple Bids

19
1. Use a Long-Term Local Company

• Local roofing companies that have been in
  business for several decades tend to be reputable
  and honest. Without trustworthy roofing services,
  the company would have gone out of business.
• You can also verify the contractors local
  address and phone number. Furthermore, you can
  contact the contractor, inquire about their
  services, and see if they claim they can eat your
  deductible.
• If the contractor claims they can waive your
  deductible, avoid them and look for another
  contractor.

20
2. Ask for References

• When you contact a roofing contractor, make sure
  to ask for references from clients who have had
  the same repair work done. Then, verify the
  references by confirming that the contractor
  completed the other clients roofing services.
• Furthermore, we recommend doing your own research
  and looking for online reviews of the roofing
  contractor. See if the roofing company has many
  negative reviews or complaints, and how they
  address them in responses. Do they make things
  right? Look beyond just the best and worst
  reviews, and see what the average ones are like.
• Other references might not be online. These can
  include BBB accreditation, membership in the
  local chamber of commerce, and a proven history
  of giving back to community organizations and
  charities.

21
3. Avoid Door to Door Contractors

• Be extremely cautious of roofing companies that
  go door to door looking for business. Reputable
  roofing contractors do not need to knock on doors
  looking for clients. Established roofing
  companies have built a substantial local presence
  through word of mouth and online transparency.

22
4. Get Multiple Bids

• Another way you can protect yourself from
  insurance fraud is to get more than one bid on
  your roofing repairs. Be wary if any of the bids
  are much higher or lower than the others.
• Its important that you have different
  contractors break down their bids by roofing
  system and components they plan to use. In this
  manner, you can make sure that youre receiving
  bids on the same products and services, and can
  better assess the actual value of each proposal.

23
What to Do When a Contractor Claims They Can
Waive Your Deductible?

• When a roofing contractor claims they can eat
  your deductible, they know exactly what theyre
  doing. Any roofing contractor thats willing to
  commit insurance fraud to get your business
  should be completely avoided.
• Furthermore, make sure also to avoid roofing
  contractors who are willing to adjust the numbers
  so you can avoid paying the deductible.
• In fact, there are no homeowner benefits that
  come with going with a contractor that will eat
  your deductible.

24
What to Do When a Contractor Claims They Can
Waive Your Deductible?

• First of all, the contractor will commit
  insurance fraud that puts your insurance contract
  at risk. Along with having to pay for the entire
  repairs out of your own pocket, you may also be
  vulnerable to legal penalties.
• Furthermore, the contractor will use cheap
  materials and choose not to replace certain
  roofing components that are damaged. Roofing
  contractors do this in order to cut costs on
  their own end and pocket the difference.
• Not only is this practice extremely unlawful, but
  your homes roof will also be damaged quicker and
  require repairs in the near future. A good
  roofing contractor will know how to work directly
  with your insurance company to get the
  compensation you are entitled to for your new
  roof.

25
What Are My Next Steps?

• If youre looking for more tips on how to find
  the best roofing company, how to navigate the
  insurance claims process, or how to find the best
  type of College Station Roofing, visit Schulte
  Roofing.
• After inspecting your roof, well explain exactly
  what needs to be repaired and how much it will
  cost. Furthermore, well provide receipts for the
  materials and replacement parts we use. Were
  happy to provide a complete quote you can use to
  compare our services with those of other roofers.