Roof contractor wants all insurance checks

I already received my ACV check that I will use to pay for the roof.

My roof contractor put the statement below on the contract.

“Customer agrees all insurance checks related to the claim will be endorsed and made payable to CompanyNameXYZ for the total cost of repairs. Total cost of repairs includes ACV, supplements, recoverable depreciation and overhead & profit payments”. plus deductible.

As the homeowner am I entitle to keep all (supplements, recoverable depreciation and overhead & profit payments) checks to pay for damage plywood or put towards deductible? Should I agree to that statement on the contract? or negotiate? dispute? denied?

Several things which may help lead you to a solution;

  1. Are they asking for all this out front and if so, are they legally entitled to make such a request in your jurisdiction? This may require bonding or special licensing?

  2. Is this clause a normal request for your area when dealing with an insurance claim? If not, it may signal cash flow problems for the contractor …

  3. Are you comfortable with THEM making this request of you? If not, why?

  4. Have you discussed modified terms with them? Worst thing is they say no.

You can always shop around if you desire. Sounds like this may not be the insurer’s preferred contractor anyhow. Good luck


I am just a homeowner and I need to get my roof fix because of a small leak. I called several contractors and this guy showed up and said I can claim insurance for a new roof because it wind damage evidence so I signed a contract that he will assist me all the way but if I get the money I have to be with his company. One shot insurance approved the claim.

When we sign the contract begin installation he put that clause right there.

I am not sure what they entitled, but I already stated I am not comfortable with all the funds to them maybe we can split the funds because it is my money and it should go towards my roof first and not for them to keep.

I am still waiting for them to response.

Did you sign the contract with this language? Sounds to me they agreed to do the roof for insurance proceeds including the deductible and any upgrades you wanted to pay for. Is that correct? If so, they are owed the money. Now if part of this money is to cover work they aren’t doing - for example interior damage - then they aren’t entitled to those funds.

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Some contractors will use that tactic as a means of tying you into an agreement ahead of time. It’s meant to bind you into using them and is their method of “consideration” in lieu of a cash deposit. Typically this form of consideration is not worth the ink used to write it and they most likely will not have any recourse against you for backing out. They also have no recourse against the insurance company.

If they have started the work already, well … then you may have a problem.

You do realize this was silly on your part?


Yes, signed in English. I did not request anything but they said going to upgrade from my current 3 tabs to architectural, ridge vent, and something else.

Did you sign a contract or an contingency agreement? Typically they will present a content envy agreement to basically tell you we will work with you and your insurance to get this approved and if it’s approved you agree to work with us. This agreement is typically not binding. However once the claim is done they typically present another agreement that is an actual contract. That is binding if written properly.

Yes, I wasn’t thinking when he said all I pay is deductible and get a new roof.
I probably have to stuck with this company since I signed the agreement and contract.
Worst case I have to pay out of pocket for damaged plywood and deductible.

I guess no negotiable for the extra funds?

If you are really concerned about the company, you should then review the contract and see whether it is indeed binding. Most contracts have a cool down period and some can be voided over an extended period if the work has not commenced, materials have not been delivered to site or custom orders placed. It may also be contingent upon where the agreement was signed? At your home, online, their business?

Some jurisdictions require “Cancellation Rights” be clearly presented on the back of contracts …

No you signed a contract and assuming that contract is legal in your jurisdiction then you have a right to rescind period and after that the cancellation clause from the contract would apply. So review that clause and see if you want to pay the fee to get out of it but remember they did work on your behalf and are due money for that work. My last point is… how would you feel if a customer in your business agreed to certain terms and then tried to change the deal half way through? I assume that wouldn’t sit well…


It’s funny how different people read and interpret posts but I don’t take these post as a homeowner that isn’t comfortable with the contractor. I read these post as the homeowner saw the size of the check and wants to see if they can squeeze the contractor to cover their end and maybe pocket a little as well.



I have to review the agreement signed a few months back.
The agreement was signed at my home after he climbed on the roof. I have 5 days to cancel the contract but as
now I am still stuck with the agreement probably paying a charge.


You are right as I stated earlier posts the checks should mine so I can pay for bad plywood any extra they can keep. But instead they want me to pay for bad plywood and not only that they jacked up the price by 30% per sheet.
I pay big annual premium for my insurance in fact they increased my premium by few
hundreds of dollars after this claim.

That may be part of it but insurance also tends to bring out the worst in many contractors and policy holders. As an example, we are currently in the economy of a massive hail storm season from the summer of 2020. The whole insurance thing is handled poorly leading to side deals, greedy fly by night contractors, corrupt adjusters and homeowners who feel it is their god given right to commit insurance fraud! Yeah, someone maybe appears to be getting a bit misty eyed and asking us here how to leverage buyer’s remorse against a contractor. The contractor may very be within their rights to ask what they are asking. Who knows? But I also know there are contractor predators who feed on consumers.

Agreed. In my experience there are just as many shady customers as there are shady contractors.


The price of wood installation is approx $100 per sheet right now.
It could be more or less in your area.

We would charge 50 dollars per sheet
When the wood was only 10 and labor 10.

Now wood is 33 per sheet, labor is 25.
So about 100 dollars it is.

But , oh wait…
My customers know how much their paying
Before they start.
Woodwork is included in the price.
They dont need to worry about it.


I work for a roofing contractor and this is exactly what we do. The verbiage you posted is standard. How insurance roofing claims work, insurance creates an estimate for the job, they send you an ACV check meant to be used to order materials and start the work. Insurance companies are notorious for leaving items off of the estimate needed to replace your roof and indemnify your home. I assume this contractor agreed to do the work for the insurance estimate amount but then will supplement for those missing items and get them approved. The contractor is not or “SHOULD” not be supplementing for items not needed and insurance will only approve what is needed usually with proof provided. This does not mean they will approve all supplements. When the job is done insurance will get a final invoice for the job from the contractor which will include the approved supplement amount. That money all belongs to the contractor. There was clearly enough damage that warranted a replacement which is great for you because you only have to pay your deductible and any upgrades if you asked for them and potentially rotten decking if any is found. What I am getting at is everything you mentioned in your post is legit. Insurance only pays what the final invoice is. If it’s less than what they approved, that’s all they will pay. So going with another contractor that potentially says they can do it cheaper does not put any money in your pocket. The recoverable depreciation is the remaining amount of the estimate necessary to complete the job minus the ACV and your deductible. There is no “extra” money. Roofs and roofing isn’t cheap.

Plainly put, the contractor just agreed to replace your roof for the amount insurance said they will pay.

Hope this helps.


You should pay the contractor his money and quit trying to put money in your pocket after he does all the work. How can you think you would keep supplements or anything else, especially after he fought on your behalf and got you a new roof for the cost of your deductible? So tedious dealing with people like you.


I have similar statements in my contract, and everything he has stated is correct and exactly what he is entitled to. You get to keep nothing, and in fact, owe your deductible to him by law. HOWEVER, I do not see anything in there that says he is asking for any of that money ‘up front’. Many contractors want the ACV payment as a down payment in addition to your deductible check/payment at contract signing. I would feel uncomfortable handing that amount over for nothing more than a piece of paper and a promise the materials will be delivered and installed. I need to get something (though I often sign contracts with no money down and a promise from the homeowner to give me a deductible amount check on delivery of materials), so I limit my request for money to just the deductible. It needs to be paid, the insurance needs proof it WAS paid (by law in Texas), and it’s typically less than the ACV payment.

If it helps, look at this like a doctor visit. You show up to their office, check-in and pay your co-pay (another name for deductible) of $0-100 depending on your insurance plan. Your insurance will pay your doctor the rest of the bill YOU OWE from the doctor’s office $500-10K or more. In this scenario, who receives the deductible? A: The doctor/roofer.

Also, beware of contractors/roofers suggested by your insurance carrier - anything that benefits the insurance IS NOT necessarily in YOUR benefit. Please remember a contractor working for the insurance has worked out with the insurance to keep costs low resulting in a tighter profit margin. To counter the lower margin, the likelihood of using cheaper, lower cost products on YOUR roof goes way up. Work with an independent contractor of YOUR choosing with products YOU want. On this last point, insurance companies are only required to indemnify you (return the damage to pre-damage condition) which means they aren’t paying for upgrades, you are. If you have a 25-year shingle, they aren’t paying for a 30-year to replace it. However, I routinely INCLUDE upgrades AT NO EXTRA COST TO YOU. This does mean I am taking money out of my pocket to provide this to you, but if you have signed my contract agreeing to abide by it’s lawful terms, I have no problem providing you a quality roof you’ll be happy with and I can make a good to fair profit on.

Hope this helps and best of luck. It’s best not to look at the insurance money as ‘your’ money. yes, they’re paying it to you, but it’s for the services your contractor (doctor) is providing. Also, ask your contractor about change orders and references. :slight_smile:


I got what you are saying, but RCV is the final price insurance will pay is about $2k more than my average estimates already. They already included any code up grades in the project. The contractor wants to get all additional supplemental and O&P checks from my insurance. I think that is unethical claim and I end up paying high price for my policy next year. Why do they want to claim Overhead & Profits? Isn’t the profits already in RCV? Any checks should go toward my damage deck first. What I see is contractors are greedy that is why insurance have gone up. At the end the contractor gets for this roof project is $5k more than average estimates with additional claims.

The reason everyone is so greedy is as follows;

  1. This is what happens when projects are summed using a “parts list” approach. Imagine buying a car from the parts department of a dealership and you will understand. This is the way insurance works.

  2. Because they can.

The move toward this has been to support a fragmented claims process populated by individuals who have almost zero experience in construction. It’s a paint by numbers system meant to avoid the cost of hiring construction savvy claims adjusters. Fill the seats with drones and get them to check the boxes. Pay them all the lowest wage possible and let the quoting system do the thinking for them. Contractors recognize that certain line items are never used in the real world but the insurance companies deem them to be reasonable. Hence the reason it is bloated and broken.

With insurance, a claim for $1 is the same as a claim for $1,000,000.00

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