CAN I MAKE MONEY FROM THE INSURANCE SETTLEMENT ? There is no legal way for you to make a profit from your insurance settlement, and this is why; Your insurance policy agrees to “indemnify”, or make you financially whole, as a result of a covered peril. The insurance company only owes you a maximum of what you’ve actually spent to do the repairs which is referred to as the “principle of indemnification”. For example; Your insurance agrees to pay a maximum of $10,000 for your loss and recommends you get three estimates and you have an RCV policy. Let’s say your deductible is $1,000, and they have held back 50% recoverable depreciation (or $5,000). So; $10,000 (total max settlement) - $5,000 (recoverable depreciation) - $1,000 (deductible) means your first check from the insurance will be $4,000. Now lets say you find a contractor who will do the work for $8,000, that’s a great deal right! So you hire him, give him half down and the other half on completion, expecting the insurance is going to send you the recoverable depreciation of $5,000, meaning you didn’t have to pay your deductible and made a profit of $1,000. So the work is done, you pay your contractor $8,000, and you call your insurance company for the depreciation. The insurance says “sure”, just send us your contractor’s invoice to prove the work is done. So you fax them the invoice and here’s what happens. Since they only owe you for what it cost you, the $10,000 figure is out the window and their settlement with you is now $8,000. They subtract your deductible (-$1,000), and what they already paid you (-$4,000) and send a final check for $3,000. So what just happened is; you’ve paid your deductible, saved your insurance company $2,000, and used a contractor who likely cut a few corners to get it done at the lower price. Not such a good deal anymore, is it? IF YOU YOU DON’T USE THE MONEY, YOU LOSE THE MONEY! MAYBE I SHOULD WAIT ? When you become aware of damage to your property, its your obligation to inform your insurance company and let them inspect the property. Once your insurance company agrees to pay your claim, they usually allow you 3-6 months to repair the damages and still be entitled to the recoverable depreciation. After the specified time, the insurance company does NOT have to give you the recoverable depreciation (making an RCV policy no better than an ACV policy). If you try waiting it out until the next storm, keep in mind the damage your claim paid for is technically uninsured until repaired! The insurance company won’t pay you again for damage they have already paid for and has not been repaired. Many unfortunate homeowners have had their policies dropped / canceled for failure to replace a roof in a timely manner. A HOME WITH A DAMAGED ROOF IS NOT INSURABLE! MY ADJUSTER SAID THERE WASN’T ANY DAMAGE ! That’s the adjuster’s OPINION. Were you there when they did the inspection? Did they get on the roof? Was your contractor present? If you answered NO to any of these questions and you’ve noticed your neighbors getting new roofs, the adjuster’s opinion was probably wrong. We specialize in this area, and we’re here to help you. We will meet with you, get on your roof with a camera, and show you what we find. If what we find conflicts with your insurance company’s opinion, we can request another inspection, meet that adjuster, and over 80% of the time GET YOUR DAMAGE PAID FOR! 5200 Ridgeline Dr., Abilene, Tx.     Phone (325) 795 2447  Fax (866) 596 2189