Hail hit your roof in Colleyville, Grapevine or Keller, and the insurance company approved your claim. Then the first check shows up, and it doesn’t look like it’ll cover a new roof. Here’s why it’s short, step by step, and how you get the rest if your policy pays it back.
Step 1: Why is my first insurance check so small?
The first check is the insurance company’s estimate for your roof, minus depreciation and your deductible. That’s why it looks so low.
The Texas Department of Insurance says the first check comes after the adjuster looks at your damage. It’s for “the estimated cost of repairs, minus depreciation and your deductible.”
As a general contractor, I see this a lot. Most homeowners I meet are confused when they get it, because it doesn’t look like enough for a full roof replacement. That’s normal. If you have replacement cost coverage, you usually get two checks, and this is only the first one.
Step 2: Is depreciation money you lose?
Depreciation is the amount taken off the estimate for your roof’s age and wear. If it’s recoverable, you get it back after your roof is replaced. Step 6 shows how.
The word throws a lot of people off. They hear “depreciation” and think that money is gone for good. If yours is recoverable, think of it instead as money the insurance company is holding on to until it gets proof your new roof is on.
Whether you get it back depends on your policy:
- Replacement cost coverage: the depreciation is usually recoverable. The insurance company pays it in a second check.
- Actual cash value coverage: the depreciation is not recoverable. There’s no second check for it, so the first check is usually what you get.
The department also says some policies “pay less if the roof is older or showing wear.” That’s actual cash value coverage, and some insurance companies switch older roofs to it when the policy renews. To know which one you have, read your policy or call your insurance agent.
Step 3: Pay your deductible and keep the proof
Your deductible is the part of the roof cost you pay yourself. Your insurance company can ask for proof that you paid it.
With replacement cost coverage, Texas law lets the insurance company refuse to pay the recoverable depreciation until it gets “reasonable proof of payment” of your deductible. Proof can include a canceled check, a money order receipt, a credit card statement, or a signed payment plan with your roofer or general contractor that pays the full deductible over time. Keep a copy of yours, so you can send it if your insurance company asks.
If a contractor offers to waive your deductible, walk away. The Texas Department of Insurance says “it’s illegal to waive a homeowners deductible” under state law.
Step 4: Does the insurance check go to my mortgage company?
With a mortgage, insurance checks for your roof usually name you and your mortgage company. You work with the mortgage company to get the money.
You sign the check and send it to the mortgage company. It may ask for a list of the work, cost estimates, who’s doing the work, and a timeline.
The department says the mortgage company “must get in touch with you within 10 days” of getting the check. Once you’ve met its requirements, it has 10 days to send you the check.
Step 5: How long do I have to replace my roof?
Your policy usually gives you a set amount of time to finish the work. If you wait too long, you may lose the depreciation.
The department’s home insurance guide says “you usually must complete repairs within a certain period of time.” It doesn’t give one number. Ask your agent or adjuster how long you have, and what date the clock starts from.
I’ve seen homeowners wait too long to replace the roof and miss out on that money. In my experience, it’s safest to plan on having the new roof on within a year. Some policies give you longer, but don’t count on that until your agent confirms it.
Step 6: How do I get the depreciation back?
Once your new roof is on, the roofer or general contractor sends the final bill to the insurance company. The insurance company then pays what it kept.
The same guide says the insurance company sends a check “for the amount it kept for depreciation” after it gets the bill for the finished job. On my jobs, IFC Roofing, the company I work for, sends that final bill along with proof the roof is finished. The final payment then goes to you, and to your mortgage company if it’s on the check. If it is, you follow the same steps from Step 4 to get the money.
Here’s who does what to get the second check:
- You: keep the insurance estimate. It shows how much depreciation was held back.
- You: keep proof you paid your deductible. Send it if your insurance company asks.
- You: know your deadline. Your agent or adjuster can give you the date.
- Your roofer or general contractor: send the final bill. It goes to the insurance company with proof the work is done.
- The insurance company: send the second check. That check pays you the depreciation it kept.
If you want the whole claim from the start, my post Roof Damage After a Hail Storm: The Insurance Claim, Step by Step walks through it. If your claim was denied instead, the denied claim section on my homepage covers what comes next. If a hail storm hit your roof in Colleyville, Grapevine, Keller or nearby, call or text me at 817-674-2037.