Most insurance companies and policies are set up to depreciate your insurance claim.

The depreciated amount will be withheld by your insurance company. If it is recoverable depreciation, you will receive that money when the job is complete. If it is non-recoverable depreciation, your insurance company is not obligated to pay that to you. PLEASE check your insurance policy as non-recoverable depreciation can be a devastating expense if you are not prepared for it. Further, the insurance company will only pay as much as is invoiced by the contractor or the Final Invoice.

Most insurance carriers will be depreciating your loss totals based on all recoverable depreciated amount. What this means exactly, in plain English, is that they are only going to pay a portion of the total amount until the work is completed. This also means that they are only going to pay as much as the contractor invoices for, or “The Final bill.”


  • Your insurance estimate/adjustment comes out to $10,000
  • Your insurance deductible is $1,000
  • Your first check you will receive will be for the first half less your deductible
  • Half of 10K = 5K less 1K deductible = $4,000
  • When we send the Final bill to the Insurance Company for the full $10,000, the Insurance carrier will send the remaining balance of $5,000 as long as your policy reimburses for depreciation.
  • Please check with your insurance provider to be sure that your policy allows for recoverable depreciation.

Can I Keep the Money?

You may think that if you get a cheaper roof, you can eliminate the amount of your deductible. For example: getting a $9,000 roof instead of the $10,000 roof to try eliminating your $1,000 deductible.

When we send the Insurance Company the final bill for $9,000, they will only send a check for the $4,000 instead of the available remaining $5,000. In other words, skimping on the quality of your roof does not save you money! It may actually cost you more in the long run if you use a less reputable, cheaper roofing company.

This is one of the ways that the insurance carriers ensure the consumer contributes their deductible portion to the agreed claims practice. It makes most sense to take advantage of the situation and put the most value back into the insured property, which the insurance companies will gladly assist.

What is My Roof Deductible?

Your roof deductible is the portion of your claim that is not covered by your insurance company. In some cases, the deductible for your roof may be different than the deductible for the rest of your home. Please review your policy or call your agent to determine you deductible. Recent changes in the insurance industry may have affected your deductible.

American Roofing & Construction will work with you to repair your home. You are only responsible for paying your deductible…that’s all. If you have a large deductible, we will work with you to get your roof replaced.

American Roofing & Construction will walk you through the claims process step-by-step as well as be a liaison to your insurance company. We will also help with any documents that your mortgage company may require.

When do I Receive My First Claim Check?

When your insurance company agrees to pay your claim, they will normally cut a first partial payment check minus your deductible. Sometimes this check is cut while your adjuster is at your home. Other times, it will be mailed to you within a week to ten days after they complete their required paperwork.

  • Your insurance company will match, not exceed, your roofing contractor’s “fair market value” bid, less your deductible.
  • If you do not spend all of the money allowed, your insurance company keeps the difference and pays the balance.
  • If you have a mortgage loan on your property, your check must be sent to the mortgage company for endorsement first before cashing.

What About Supplemental Claims?

In a storm environment, with rising material and labor costs, it may also be necessary to file for a supplemental claim to cover rising costs. Other causes for supplements may arise such as code items, incorrect measurements and permitting.

When a supplemental claim is paid, your insurance company will either issue a third check or include supplemental monies in with the second check which is the recoverable depreciation. This check will be made out to the homeowner and may need the signature of your mortgage company.