There’s no doubt about it, an insurance estimate for roof storm damage is not the easiest thing to read. There are a lot of numbers and terms to get through when trying to figure out how much your insurance company is going to pay for your roof repair or roof replacement.
Here at the Roofing Annex, we’ve seen hundreds of roofing estimates from various insurance companies and are familiar with their contents. In fact, you’ll find that the estimate you receive from the Roofing Annex’s free storm damage inspection is similar in format to your insurance company’s estimate. That’s because we use the same software, pricing database and claim estimate format utilized by most insurance companies.
Line-By-Line Explanation of a Roofing Estimate
Your insurance company arrived at its roof damage estimate from the inspection performed by its claim adjuster and from supporting documentation provided by the Roofing Annex from our inspection.
The top part of a roof damage insurance estimate contains pretty basic information, such as your name and address, the claim number assigned to your case, the name of the adjuster assigned to your claim and identification of the damaged location.
The main part of the document is the nuts and bolts of the estimate and is often presented in column format.
Example of Insurance Claim Estimate
| Description | Quantity | Unit Cost | Replacement Cost Value | Depreciation | Actual Cash Value |
| This column will list every roofing item that needs to be fixed. | This column will display how many of each item is needed for the job. | This column will show the individual cost per item. | This column will display the total amount of an item based on the quantity needed. | This column reflects any amount deducted from the replacement cost value. | This column shows the final price after any depreciation has been taken. |
The Description section describes every repair or replace action that will be done to your roof, such as tear off composition shingles, re-nail roof decking, replace flashing, caulk eave, etc., as well as the materials to be used. It is based on what the claim adjuster saw during the inspection of your roof.
The Quantity section indicates how much material is needed based on your roof’s damaged area. The amount may be reflected per square foot, per linear footage, or per each.
The Unit Cost column lists the amount each item costs to purchase, whereas the Replacement Cost Value column displays the total dollar amount of the quantity needed multiplied by the unit cost.
The Depreciation section represents how much, if any, is being deducted for considerations like a decrease in property value, the age of the roof, the condition of the roof and other factors. Depending on your home insurance policy, you may be able to recoup the depreciation amount once your roof is repaired or replaced.
The Actual Cash Value column shows the amount of the Replacement Cost Value minus any Depreciation amount.
If your roof repair involves fixes to your attic or other interior areas of your home, an estimate listing for each damaged location will follow. At the end of the entire insurance estimate is a Line Item Total for each damaged location and a Summary for Involved Coverage that includes:
- The Line Item Total.
- The Sales Tax percentage for your state and the total sales tax for materials needed.
- The Subtotal reflecting the Line Item Total plus the Sales Tax.
- The Overhead percentage, which is calculated from the Subtotal amount and reflects the amount over the repair price for the services of a contractor.
- The Profit percentage is calculated from the Subtotal amount and reflects the contractor’s profit for performing the work.
- The Replacement Cost Value, which is the Subtotal plus the Overhead and Profit amounts.
- The Net Claim, which reflects the Replacement Cost Value total minus your policy’s deductible. It is the amount that your insurance company will pay for your roof damage insurance claim.
Roofing Annex Estimate vs. Your Insurance Company Estimate
Generally, the cost estimate you receive from your insurance company will be the same as the Roofing Annex’s storm damage inspection estimate. But sometimes there could be differences in pricing, perhaps caused by inaccurate measurements, missed items, or area price increases for materials. If this occurs, the Roofing Annex will contact your insurance company to discuss the discrepancies and arrive at an agreed upon price.
Let us put our expertise to use for you, comparing your insurance company’s estimate with ours, explaining to you any discrepancies and working with your insurance company to resolve any price differences so all you pay out-of-pocket is your deductible.
