Posted: 9/19/2015 9:10:18 PM EDT
|
Hey guys.
So we had an insurance claim on our house last year. A huge hail storm came through and wrecked havoc on the entire city. The adjuster came out and gave us money to paint, fix the fence, new window, gutters, and a new roof. Deal is, the roof was done 4 years back and has 40 year shingles on it. In fact, you cant even see any damage. Inspector even said it was a bit of a stretch. Question is, what should I do with the roof? Replace or keep the money for down the road? If we keep the money and end up selling the house, do we have to replace the roof when we sell? Thanks |
|
The money is yours to do with as you wish. You can fix it or not.
We had a tree fall on our house last winter and we still haven't gotten around to repainting the interior of our bedroom (wall was repaired) or the patio cover. We're going to do it eventually. The wife just has to pick a color and I'm waiting for the new neighbors to cut down another threatening tree before we fix the patio cover. |
|
A few comments First, check with your mortgage co., if you have a mortgage. They may require that you repair the roof. Second, the money you get will likely not be the full amount to replace the roof at first. The insurance company will typically withhold a certain amount until you can show invoices for the total of the replacement or repairs. Only then will they cut a check
Hail damage is tricky. It doesn't always look apparent but it still can be there. Check your gutters for little pieces of asphalt. That's one sign that you had some damage. |
|
Quoted:
What if there is damage and it turns into a leak. Are you going to try and hit the Ins company for coverage on something they already paid you to repair? That might come back to bite you. ^ When the next claim comes in, the first thing the adjuster will do is pull up your claims history and ask, "Why didn't you repair the roof when we paid you to?" Oops... You're certainly under no legal obligation, although you may be under a contractual obligation through your mortgage company. But it could come back to bite you if you don't. You're essentially declaring that the roof is fine and that you didn't need the money. Source: I am the insurance. 
|
|
Quoted:
A few comments First, check with your mortgage co., if you have a mortgage. They may require that you repair the roof. Second, the money you get will likely not be the full amount to replace the roof at first. The insurance company will typically withhold a certain amount until you can show invoices for the total of the replacement or repairs. Only then will they cut a check Hail damage is tricky. It doesn't always look apparent but it still can be there. Check your gutters for little pieces of asphalt. That's one sign that you had some damage. Yes we have a mortgage, I can call and talk to them. They didnt give us the full amount like you said. There was pieces of gravel in the gutters but nothing crazy. The inspector said the roof looked great. |
| My wife works in property claims. She has a lot of stories similar to yours where people take the payout and don't repair whatever damage is done to their home. A few years later something else happens and the insurance company comes out and wonders what you did with all that money. Then you're SOL |
|
Quoted:
^ When the next claim comes in, the first thing the adjuster will do is pull up your claims history and ask, "Why didn't you repair the roof when we paid you to?" Oops... You're certainly under no legal obligation, although you may be under a contractual obligation through your mortgage company. But it could come back to bite you if you don't. You're essentially declaring that the roof is fine and that you didn't need the money. Source: I am the insurance. Quoted:
Quoted:
What if there is damage and it turns into a leak. Are you going to try and hit the Ins company for coverage on something they already paid you to repair? That might come back to bite you. ^ When the next claim comes in, the first thing the adjuster will do is pull up your claims history and ask, "Why didn't you repair the roof when we paid you to?" Oops... You're certainly under no legal obligation, although you may be under a contractual obligation through your mortgage company. But it could come back to bite you if you don't. You're essentially declaring that the roof is fine and that you didn't need the money. Source: I am the insurance. We plan on selling in 4-6 years. I will check with the mortgage co and see what they say. If we have to replace it we will. Like I said, I would rather not and use the money elsewhere for home improvements. |
|
You've only been paid ACV. You may as well do the roof now. If something happens to the roof in the future, your BEST case scenario is they subtract off your prior payment and still cover the roof. Worst case, you're SOL. 40 year just refers to the warranty, not the lifespan. Don't trust your home inspector, either. Hail hits on laminate shingles are subtle, and may not involve much granule loss. It isn't going to leak from the hits, but you're gambling with coverage for everything else. House burns down? They subtract off the roof portion of your payment, because it was already "totaled" prior. I've heard so many people say they think it's fine and they'll "save" or "invest" the money, then do the roof later. They never do. Ever. It sounds like you had a decent sized loss. I'd be shocked if the bank let you have the money. Also, the clock is ticking on recovering your depreciation. You likely can't replace the roof and submit invoices a year or two later, depending on the state. You also haven't investigated if your estimate is even in line with current pricing. And, legally speaking, that roof is totaled. Even the next buyers can't get coverage on it. Their insurance can see the claim history on the house with the click of a button. Hell, they see a red flag if someone with the same phone number put a claim in years apart. |
|
Quoted:
Hey guys. So we had an insurance claim on our house last year. A huge hail storm came through and wrecked havoc on the entire city. The adjuster came out and gave us money to paint, fix the fence, new window, gutters, and a new roof. Deal is, the roof was done 4 years back and has 40 year shingles on it. In fact, you cant even see any damage. Inspector even said it was a bit of a stretch. Question is, what should I do with the roof? Replace or keep the money for down the road? If we keep the money and end up selling the house, do we have to replace the roof when we sell? Thanks If you ever intend to sell you'll have to disclose the damage and that you never filed a claim on the roof. I won't be taking your word for it. It will be between your insurance co and me. You're not in the discussion. If I'm the buyer you're replacing that roof at no cost to me. If you dont intend to sell then pocket the money knowing full well you may need to use it for the roof. |