How Insurance Pays for Roofing Claims:

Insurance companies use a structured payout process to ensure that policyholders receive funds for necessary repairs and replacements.

1. Actual Cash Value (ACV) – The Initial Payout

  • ACV is the depreciated value of the damaged item at the time of the claim.
  • It reflects wear and tear, age, and current market value.
  • Homeowners receive this portion first, regardless of whether they proceed with repairs.

🔹 Example: If a 15-year-old roof was originally worth $15,000, but its depreciated value is $7,500, the ACV payment would be $7,500 minus the homeowner’s deductible.

2. Replacement Cost Value (RCV) – The Full Value of Repairs

  • RCV is the full cost to repair or replace the damaged item.
  • It includes both the ACV payment + recoverable depreciation.
  • Homeowners receive the remaining recoverable depreciation only after repairs are completed.

🔹 Example: If a homeowner’s approved claim is $15,000 and they receive $7,500 ACV upfront, the remaining $7,500is paid after proof of completion.

3. Recoverable Depreciation – Insurance Holdback

  • The difference between RCV and ACV.
  • Insurance holds this amount until proof of repairs is submitted (Certificate of Completion - COC).
  • If repairs are not completed, insurance will not pay the withheld amount.

🔹 Example: If the full cost of replacement is $15,000, but the ACV payout was only $7,500, the remaining $7,500 recoverable depreciation will be released once Weatherguard submits the final invoice.

💡 Key Tip: Many homeowners don’t realize that recoverable depreciation can expire if claims are not closed in a timely manner. It’s crucial to complete repairs quickly and submit documentation ASAP.

4. PWI (Paid When Incurred) – Special Case Payments

  • Some insurance policies only pay for certain items after they are invoiced.
  • These items are usually code upgrades or optional repairs.
  • The insurance company requires proof that the homeowner paid for the work before they release additional funds.

🔹 Example: A new roof requires code-compliant ridge ventilation that was not included in the original insurance estimate. Insurance won’t pay until they receive an invoice showing the homeowner covered the cost first.

📌 Important: Homeowners should be aware that they may need to pay out of pocket before getting reimbursed for PWI items.

Why Do Some Claims Get Denied or Reduced?

At Weatherguard, we maximize insurance payouts by ensuring that every claim is properly documented.

Top reasons for denied or reduced claims:

  • Insufficient documentation (missing photos, measurements, or reports).

  • Failure to meet insurance policy requirements (no code coverage, missing endorsements).

  • Delays in submitting proof of completion (COC).

  • Insurance company disputes on the extent of damage.

How do we help:

  • We provide detailed photos and reports to justify every supplement request.

  • We communicate directly with insurance adjusters to negotiate approvals.

  • We educate homeowners so they understand the importance of proper documentation.

💰 Approval Rate: We successfully secure 91% approval on supplements, adding ~$9 million in claim increases yearly.

Final Insurance Payout Timeline

The following information is based on estimates, and varies from project to project. If you're curious about a specific claim please reach out to the claims department

1. Initial Insurance Inspection (Day 1-7)

  • Adjuster inspects property and determines coverage.
  • Homeowner receives insurance estimate (ACV + RCV details).

2. ACV Payment Issued (Day 7-14)

  • Insurance pays out the depreciated amount (ACV) minus deductible.
  • Homeowner can begin work with Weatherguard.

3. Supplement Requests (If Needed) (Day 15-60)

  • If insurance missed damages, Weatherguard submits a supplement.
  • Adjusters review the request (processing takes 1-60 days).

4. Project Completion & Documentation (Day 30-90)

  • Homeowner pays their deductible & any out-of-pocket costs.
  • Weatherguard submits the final invoice & Certificate of Completion (COC).

5. Final Insurance Payout (Day 60-120)

  • Insurance releases recoverable depreciation.
  • If applicable, PWI payments are issued after proof of cost.

Key Takeaways for Homeowners

  • Your first insurance check (ACV) is not the full amount.

  • Recoverable depreciation is released only after work is completed.

  • Supplements may be needed to ensure full claim approval.

  • PWI (Paid When Incurred) means insurance won’t pay until an invoice is submitted.

  • Weatherguard will handle all documentation to maximize your insurance payout.