Another Hailstrom Question

Roofing/Construction Questions
#1

Hello Folks,

New here but been checking the forum to find similar questions before I decide to post. I’m still puzzled so perhaps you gents can help me out.

The recent hailstrom (late May) have damaged my roof. The insurance adjuster came out and estimated cost about 12,000 USD. The money is included for 5 cracked windows and two busted sky lights. The insurance company cut me a check already for the work.

I will be totally honest here initially I wish not to use the money to repair the roof. I want to do some other home improvement with part of the money and pocket the rest. I replaced the entire roof back in 2009 and there are roughly 5~6 shingles I see needs to be fix (they are bold but not cracked or lose). I’ve already read few posts regarding to this situation and now my decision is wavering.

My question is:

  • If I don’t fix the roof or partially repair it, what will be the consequence with the insurance company (My carrier is All State)?

  • I don’t know the type of shingle I have but they look like thick rough sandpapers, They are still new and is it really necessary to replace entire roof with just few damaged shingles? Or does the roofers try to sell me more than I need?

Some facts:

  • The entire roof is replaced in summer 2009.
  • The bald spots I mentioned earlier are about golf ball size.
  • I live in Texas where the summer is hot and we get hailstorm every spring.
  • After this incident there are few rain stroms. I checked the attic every time and there are no leakage as I know of.
  • The house is about 30 years old.

My questions are sincere and my budget is limited. It would be really nice to keep the money in the pocket and improved on some need it areas. You honest opinions and candid answers will really help. I truly apprecaite it.

Thank you in advance,

Ben

#2

Do the repairs, pockit the money wait next hail storm, collect again from alstate they got deep pocket. :badgrin:

#3

Thank you John,

If that is the case wouldn’t it be more logical to pocket the money this time and collect again next year? After all, the roof will be only 3 years old right?

#4

Unless Allstate screws up horribly, you won’t get paid for the same roof twice. They keep records, including pictures, of the claim you just filed. If you do not do the repairs and turn in an invoice for the full claim amount, to collect the recoverable depreciation, you will be committing insurance fraud.

You are free to keep the front end ACV check and do as you please. Do not be confused however by thinking you’ll get that roof replaced by insurance down the road.

#5

If you just perform a repair then submit a final to obtain the RECDEP deceiving the insurance company then that is fraud.

If you can somehow convince a contractor to go along with your scheme then both of you are subjected to very serious charges.

If your roof contains hail damage and you partially repair then the shingles you repair will be newer and richer in color.That will shoot your plan down during your next hailstorm.Adjusters are not stupid people.

Each slope of your home was ticked and photographed by the adjuster.Between the contrast of the new shingles to the old and the accelerated process of existing damage when a new storm hits your plan will undo itself.That will leave you with a home with serious roof issues or without an insurance carrier,or both.

Some think the insurance companies have deep pockets.,.,.,.,.,maybe so BUT they have deep pockets and also in those pockets are some of the best attorneys.

Its homeowners like you that helped create the DEP factor.If I was an insurance company I would do the same too.

By cashing that check you agreed to Allstate’s replacement guidelines.,.,To make the property as good if not better than it was before the storm.

Adjusters are trained to detect new damage from pre existing damage.Your next storm when you try to file a claim they look at your previous claims and what you were paid for and the amount.

#6

[quote=“Roof Noob”]Thank you John,

If that is the case wouldn’t it be more logical to pocket the money this time and collect again next year? After all, the roof will be only 3 years old right?[/quote]

what he said is 100% insurance fraud.

you DO have the right to simply pocket the check they already gave you. that is the ACV (actual cash value) of your roof, and you can do with it, whatever you choose. one of those choices, could be to hire a roofer, and simply replace the few shingles that are severely damaged.

now… if you do that, then technically, you do not have any insurance on your roof. and this is where it gets tricky.

say in 6 months, you have an ice storm, and you end up with 6" of ice on your roof, creating major problems like leaks… that causes massive problems with moisture and water all over your house, and thousands and thousands of dollars in damages to everything in your home. at that point, allstate comes back out to check out the damage. they then find that you never replaced your entire roof (that they in fact paid for) and then they simply say “sorry, but your roof was not covered by your policy, because we paid for you to put a new one on your home, and you chose not to do it”.

so then you are screwed, all because you THOUGHT you knew what hail damage looked like, and you assumed that only the visible damage (to you) was what the problem areas were. Adjusters are trained to know what fresh hail, and what “old” hail damage looks like, and they will know if you replaced your roof or not.

ultimately, the decision is yours… but trying to claim the same roof more than once is asking for trouble.

#7

Thank you gentlemen for the clarification and quick responses. I truly appreciated.

I want to state I did not know this would be a potiential fraud and I do not wish to fraud the insurance company. I honestly felt that the roof is relatively new and I feel the money could be spent else where on other part of the home.

The insurance company gave me one year to fix my roof. Let say if I use the ACV to fix my fence now and I gather enough money out of my pocket to fix my roof after a year and a half then, will that still be legit with the insurance company?

Thanks again,

Ben

#8

[quote=“Roof Noob”]
The insurance company gave me one year to fix my roof. Let say if I use the ACV to fix my fence now and I gather enough money out of my pocket to fix my roof after a year and a half then, will that still be legit with the insurance company?

Thanks again,

Ben[/quote]

While that is POSSIBLE… we all know it is not probable. If you dont have the money now, its less likely that you will have it then. Everyone (usually) has good intentions. But as the months go by, and your roof still doesnt leak… you will keep talking yourself out of replacing it.

better off to get it done now, use the money they gave you, and fix the fence later.

#9

If you replace your roof within that one year period, it doesn’t matter. The money sent isn’t “tagged”, money is money.

When one considers all the potential downsides to pocketing the money (or using it on something else, even if it is a home repair or upgrade, it is still pocketing the money), it is foolhardy at best to do anything other than make the repairs paid for. The scenario Jason described may seem far fetched but could happen and the results could be devastating. Suppose those leaks ended up causing extensive mold. You could be looking at a $100K problem the insurance wouldn’t be obligated to pay for … nor should they.

For most people, their home is far and away their most valuable asset. You have essentially “free” money to protect that asset, do the intelligent thing.

#10

Thank you Jason and Dad,

Now it is sounds like the right thing to do. I will have a family meeting and share your comments tomorrow. I will update you gents on our decision.

have a good evening,

Ben

#11

Another huge issue has not been listed, and it is important.

I know several people in your state that did try to pocket the ACV check, then got a big surprise. The homeowners got a letter of insurance cancellation from their insurer a couple of years later. The homeowners were, then, given a short time period to replace their roofs or be cancelled. I was told by those homeowners that the cancellation would put them in a high risk pool with other very expensive types of policies.

By then, shingles had gone up so much that they ended up paying a huge amount for the roof.

I do not know all the details of those instances, but there is no way that I would think the insurers want you to get off with a bunch of their money for nothing. The insurers easily know that you replaced your roof or not. The RCV check is applied for, with the final invoice. If they do not get that, they check to see if you just pocketed the money. Apparently, the insurers do not want customers like that.

I recommend that you replace the roof now.

#12

thanks guys for putting him straight, the first guy came by would over charge him took the money and run. And when the roof leaked he be no were to be found

#13

Very true.,.,.,I had a customer who spent her insurance check on her pet grooming business’s taxes.

AmFam found out and gave her 60 days to have her roof,siding and gutters replaced.The result would have been cancellation and black balled.

People think that when they file a claim and receive a check,.,.,somehow they find it in their minds that the insurer owes them for all the years of coverage.

True they do owe them.They owe them property repairs in the event of damage.Not to purchase vehicles,electronics,swimming pools or paying for credit cards or anything else that they can seem to justify committing fraud.

Yes the insurance companies might be getting a little wicked but that gives noone the right to commit insurance fraud.

#14

file a reinspect on the wind damaged fence and get the whole thing bought.

#15

If allstate bought your roof you must have gotten some really big hail, you better replace it!

#16

Outside of John’s hopefully toungue in cheek comment, good points made by all. Common sense, mostly.