Understanding Insurance Estimates: Terms You Should Know

Homeowners should document signs of storm damage as soon as it’s safe to go outside. Once your insurer receives documentation of the extent of storm damage, they’ll send an adjuster who’ll assess the damage and calculate your insurance payout. 

It’s recommended that you have your roofing contractor at your home when your adjuster arrives. If your contractor is at your home when the insurer visits, at least your contractor might be able to point out anything the adjuster misses. Remember: Adjusters often have busy schedules, so there’s a chance they might miss something. After assessing the damage, the adjuster will produce a statement of loss, which itemizes all of the repair costs. 

Some of the terms you may encounter include: 

Commonly Used Terms

• Replacement cash value (RCV) – The total amount for the insurance estimate is called the RCV. Keep in mind that the RCV is just an estimate—it’s not yet the final settlement. The final settlement is calculated by subtracting your deductible from the contractor’s invoice.
• Depreciation – The amount that won’t be released until the repairs or replacement is completed.
• Actual cash value (ACV) payment –  The ACV payment is the first insurance check you’re expected to receive. Your first insurance check is calculated by deducting your deductible and the depreciation from the RCV. In most cases, the amount is just enough to get roof repair work started.
• Supplements – In case the adjuster missed some items or overlooked some minor damage, your insurer might make some adjustments to your insurance payout. You shouldn’t worry too much about supplements or adjustments—they’re a normal part of the insurance claims process. In fact, most insurers have a team that’s dedicated to processing supplements and adjusters.

When to Consult a Roofing Contractor

Filing an insurance claim isn’t as straightforward as it seems. If you’re having trouble filing an insurance claim, there’s always the option of consulting a professional roofing contractor—some roofers offer insurance claims processing assistance. 

Deschutes Roofing & Insulation offers a wide range of professional roofing services, including roof replacement and repair services, as well as insurance claims processing assistance services. To get a free estimate, call us at (541) 728-0004 or fill out this form.