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My insurance check was way less than the estimate. Did they short me?

Probably not, and this is the exact moment homeowners get taken advantage of, so it is worth understanding before somebody explains it to you at your kitchen table.

Most policies pay you in two pieces. The first check subtracts two things: your deductible, which is your share, and depreciation, which is the value your old roof lost to age and wear.

That first check is supposed to look small. Once the work is finished and your contractor sends the final invoice, the insurer releases the depreciation it was holding back.

The arithmetic on a $20,000 roof with a $2,500 deductible

Replacement cost of the roof: $20,000
Less depreciation held back, say $4,000, giving an actual cash value of $16,000
Less your deductible of $2,500
First check: $13,500. This is the one that looks wrong.
Work completed, final invoice submitted, insurer releases the $4,000 holdback
Total paid to you: $17,500. Your out of pocket: $2,500, which is your deductible, exactly as the policy says.

Nothing was stolen from you. The money arrived in two pieces because that is how the policy is written, and the second piece is contingent on the work actually getting done.

The one thing to check before you count on the second check

It only comes back if you have replacement cost coverage. If your policy pays actual cash value only, which is increasingly common on older roofs, that depreciation is never released and the gap is yours to cover.

Look at your declarations page or ask your agent which one you have. Ask before the storm rather than after, because you can often change it at renewal and you cannot change it after a loss.

Your cue to slow down

If a contractor tells you your insurance shorted you, and offers to just work with that first check, stop. Either they intend to do less work than the estimate describes, or they are counting on money you may never receive. Neither ends well for you.

If something genuinely is missing

It happens. An adjuster works fast and items get left off, particularly on slopes that are awkward to reach, and on flashings, vents and gutters. That is what the supplement process exists for. Your contractor documents what was missed and submits it. You do not have to accept the first written scope as final, and you do not need to sign anything over to anybody to get a supplement filed.

Want us to read your estimate against your check?

Send us both and we will show you where every dollar went, and whether anything is actually missing. We will reach out within one business day to set up your free in-person inspection.

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