Hail Damage Repair
For insurance purposes, hail damage to roofing-covering materials is defined as either “functional” damage or “cosmetic” damage. Being able to determine the difference between the two is crucial, and has long been a point of contention between members of the insurance industry and members of the roofing industry, primarily because of ignorance of or disagreement over basic criteria.
Functional damage is damage which:
Diminishes the ability of a roof to shed water; and/or reduces the roof’s expected long-term service life.
Functional damage varies with different types of roof-covering materials. Wood shake will show functional damage differently than asphalt and tile roofs.
Damage which doesn’t meet the definition of “functional” is considered “cosmetic.”
Cosmetic issues may be discoloration or damage which doesn’t affect the lifespan of the roofing material or reduce its ability to shed water. Cosmetic damage is that which only affects the appearance of a material, or affects its functionality to only a minor degree. Some examples are…
…hail dents in metal vent caps, gutters and downspouts.
Cosmetic issues also vary with the type of roof-covering material installed. Insurance companies may or may not pay for cosmetic damage.
An example of when an insurance company might pay for cosmetic damage is when the damage results in a financial loss to the policyholder, or if reimbursement is required by state or local law. Whether cosmetic damage may be compensated for also varies somewhat by the policies of various insurance companies, and how each policy is written.
A “loss” is usually interpreted to mean a loss in the home’s value. An example of this might be an expensive copper roof which is badly dented by hail. A loss may vary by location. If the copper roof is in a highly visible portion of a high-end home, damage may more likely be paid for than if it were on a portion of a second-story roof which is barely visible from the ground.
There are two types of Policies: Replacement Cost vs ACV
The first type of Insurance Policy is a Replacement Cost Policy that will pay the insured the full replacement minus your deductible. When this type of claim is paid the Insurance Company may hold a portion of the monies paid out which is call “Depreciation”. Do not be alarmed if you see this depreciation amount deducted from your adjusters report, because once 4D Roofing & Construction has completed the work, our staff will file for the depreciation with your insurance company.
The second type of Insurance Policy is an Actual Cash Value Policy (ACV). This type of policy is much different than the Replacement Cost Policy. With this type of policy the insured is responsible for the deductible as well as the depreciation that is deducted from your claim. As a property owner, It is very important to understand the type of policy you have on your property. If you are not sure you can contact your agent and they will be able to verify the type of policy you have.