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marialisa's avatar

How does this insurance claim on my roof work?

Asked by marialisa (464 points ) August 22nd, 2011

I have received all the money for my roof, except my deductable and the depreciation value for “replacement costs”. I have hired a roofer that charges below what the claim pays out for labor. He is licensed and has been doing it for 35 years. If he sends in the invoice that is lower than the insurance labor claim, do I need to send the balance back to the insurance company?

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10 Answers

CWOTUS's avatar

If you’ve received the money, then it’s yours to do with as you wish. (If you don’t repair or replace the roof, then the rest of your homeowner’s policy will probably be invalidated, though. Without a proper roof, there’s no way to protect the rest of the structure… or contents.)

Make a firm price contract with the roofer for less than you’ve received in cash, if possible. If you have a “time and material” contract, then he can blow through the estimate in all kinds of ways. The contract will be between you and the contractor. He won’t “send in an invoice” to the insurer if you’ve already received a settlement check. You pay from what you’ve received.

Pied_Pfeffer's avatar

There are several ways to rationalize pocketing any overage between the insurance payment and the contractor’s invoice. I’d send the difference back to the insurance company.

marialisa's avatar

He hasnt done the work yet. I am going to replace roof. I am wondering what the normal and legal way to do this. I dont want to scam money. I want it done correctly and legally.
I have to send all invoices and receipts to the adjuster.

WestRiverrat's avatar

You get to keep any money they settled on you, just like you will have to make up the difference if it doesn’t cover the full cost. If you don’t feel like you deserve it, then donate the excess to Habitat for Humanity or your favorite charity. Don’t send it back to the insurance company.

Pied_Pfeffer's avatar

@marialisa That’s really good to hear. In that case, contact the insurance company and inquire. It’s probably already listed in the small print of the agreement you signed, but a call will get the answers much more quickly.

john65pennington's avatar

Just had a new roof installed on my house, due to storm damage. The roofing company and my insurance adjuster came together with a price to replace my roof.

The roofing company did an excellent job and I highly recommend Mr. Roof. After all was said and done, my new roof was finished with a few dollars left over. I, like you, did not know what to do with the overage. I sent certified check to my insurance company with a note explaining the certified check. My insurance company sent the check back to me. They did not want it, I guess trying to refigure their issued check would be too much to account for.

I still have the check. At least, I did the correct thing by sending it back and you should, too.

pezz's avatar

Like with any insurance, you pay monthly payments for years, then something gets broken, you put in your claim and then they find as many ways as possible not to pay you the full amount back.

marialisa's avatar

What happened to the slogan “Nationwide is on your side”? What does that even mean?

Pied_Pfeffer's avatar

@pezz Wow. Is that statement based upon personal experience? I’ve never had a problem when filing a claim and getting the work done.

john65pennington's avatar

marialisa, Nationwide was on my side. No problems, at all.

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