💵 What Happens If I Keep My Insurance Money? 💵
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- Опубліковано 12 лип 2024
- Hey, roofing insurance claims can be confusing. You may have heard about people spending their checks without fixing their roof and then it storms and they're in trouble.
In this video, I explain what happens if you spend your check instead of fixing your roof. So watch this video and learn everything you need to know if you decide "I'm just going to keep the check!"
Homestead Roofing, Inc is a licensed and fully-insured Colorado Springs Roofing contractor that serves homeowners in Colorado Springs, Fountain, Falcon, Peyton, Manitou Springs, and other surrounding communities.
Visit the Homestead Roofing website for a lot more information, education, scam alerts, and tips at homesteadroofingcolorado.com or call our office at 719-433-6991 if you have any questions about this or any other roofing-related topics.
00:00 Introduction
00:39 The Cost of Replacement
01:00 Some Assumptions
01:20 Replacement vs actual value
01:56 Two Checks
02:17 First Check
02:32 Second Check
02:48 Ask your insurance
03:36 Determining Claim
04:17 Depreciation Example
04:43 Depreciation Math
05:04 First Check Math
05:35 Waiting on invoice
05:47 Keeping the first check
06:40 New insurance claim
07:42 The Consequences
08:20 New Claim Math
08:45 Costly Consequences
09:45 The Real Cost of Keeping
09:56 Why this topic?
10:45 Think Twice
11:07 Learn, Like, Comment & Subscribe
My god you saved my brain from all this craziness, Im a fairly new/ young homeowner and this is has been a hair pulling situation thank you for making this bearable!
A very good explanation about a insurance claim.
Thank you!
Have subscribed. They hate. Your revealing there techniques. Question is how long has this sh.t been going on? How many decades. Truth comes out.
I recently spoke with a newly-retired insurance agent. Even he was telling me how bad his company is. He's not even insured with them.
Going through this right now. It's overwhelming. Was hoping there wouldn't be as much damage as there apparently was. Just got the check deposited into bank today and trying to figure out what's next. It hasn't been super clear, but that's probably my nerves making it easy to miss stuff. I'm emailing my mortgage company and insurance agent left and right for help.
Let me know what town you're in and I may have a good roofer connection there who can help guide you if you want.
Insurance can deem you as "high risk," especially if the damage has caused further issues outside the scope of the roof, and drop you for not completing the roof and other repairs promptly. Insurance can and typically will demand the roof be restored to "pre-storm conditions" by a specific date. Insurance can also require repayment of the money on top of this. Insurance can drop coverage or jack rates sky-high if this is not satisfied. Secondly, the contractor you rake over the coals will usually report you and should. We have seen homeowners dropped by insurance firsthand from this exact scenario.
Another scenario is the homeowner will try to cheap out on the work with another contractor, failing to realize the back-end check is adjusted to the price the cheap guy did it for. Rarely will the front end cover labor, material, and sufficient profit. In this situation, the homeowner receives a poor installation with corners cut left and right so the cheap guy can compensate for the lost profits.
Save yourself, insurance, and the good contractors the migraine. Please do things the right way the first time.
Well said, and informative.
Very informative i have one question our detach garage caught in fire j have a lot of belongings on it now my aunt got paid and work already started my question is does the contentlist was already been included on that check it comes separate as i was told by her
You'll have to ask your insurance agent.
Great video. After approval do you know how long allstate give you to make the repair?
The last I knew it was 6 months.
Im that scenerio , homeowner actually saved ins comp money by not getting the wrk done after 1st check. If it was truely damaged on the original claom and replaced , it would of got damaged 3 years later anyway. Ins comp should write him a thanku card
Wow! How timely! I was under the impression that if I fixed something myself, or got it CHEAPER, that I would get what the entire insurance adjuster said it's worth. This is leading me to believe that if I get it done cheaper, that the insurance company legally can demand/find out that I got done under their bid... and will no longer give me 100% of what they projected if I found someone cheaper. Jeez.... am I correct in my thinking? Why oh why and where oh where did I get the impression that I could pocket if I did some of the stuff myself... but just had to do a certificate of completion without legally haveing to share the invoice to get 100% of what the insurance company was holding back as the second payment. ...Bottom line, is what I just said that I thought you said correct? Thanks, and LOVE your videos!!!!!!!!!!
In most states it’s actually illegal for the insured to profit from an insurance claim. The funds are to go to replacing the roof.
You can do the work yourself, but you have to provide an invoice to the insurance company. I believe you are allowed to bill for your time, but you have to check with the insurance laws in your state. As the other person commented, in many states it's illegal for a homeowner to profit from an insurance claim.
And ... Thank you for the encouragement about our videos!
Hi sir! I have a question regarding the loss draft mortgage. So after we got a check you’re saying we can cash it and used when we’re supposed to send the check to the loss draft mortgage. will the mortgage comp knows about the claim we filed and the check we kept? Do they have the claims in their system and go after us? Thanks in advance sir !
I'm not exactly sure what you're asking, but some times the mortgage company will want to see a certificate of completion. If you're planning to keep the insurance money, however, that's fraud.
here is your answer. If you have a mortgage, your claims payment (unless it is a very small amount) will also name your mortgage company. They are insured by your policy to the same extent you are. Usually your mortgage company will not provide their endorsement of your check until you provide a "certificate of completion". Your contractor can provide that for you. This is how they protect the value of the property they have financed for you. There is a lot of fraud and "hide the money strategizing about this on the part of homeowners. If those homeowners turn in another claim for the same unrepaired damage ,they are often caught by the insurance company which has pictures and estimates of the previous claim. They probably won't prosecute you but they will decline the second payment.
Ive got a question...I got my first check and my roofer says to give him that amount + the deductible? But the deductible already got subtracted from my first check. Is this standard process?
Yes, that's correct. The deductible gets paid to the contractor.
My 2yr. old roof got some hail damage... I kinda want to keep the insurance money. I could install central air or buy something else, like a car or something
Not recommended
If you don't have a mortgage on your house, that is not a crime. If you do have a mortgage and your mortgage carrier is named on your settlement check, it is insurance fraud. Further problems if your roof leaks. New damage to the interior may be denied. Also expect policy cancellation.
@@philliphays4284 no mortgage..bought it cash..I went ahead and replaced the roof and sold it... probably shoulda kept the money instead
besides the insurance company keeping the money i kept in the first claim what other things may happen? is it legal or illegal to keep that first check from the insurance company?
You'd have to ask your insurance agent that question. Technically, it's probably considered insurance fraud, but ask your agent.
What if you change insurance? Do they still keep track of your repair invoices from the previous insurance company?
A new insurance company would not have a way to track if that money was spent on repairs or not.
Yes .. insurance companies communicate with each other they will know if you didn't complete the repairs
That is insurance fraud..
What recourse do consumers have if the insurance says the roof replacement cost is thousands less than any local contractor's actual bid?
A public adjuster or an insurance appraiser. The appraiser may be the best way.
What if you change insurance companies? Can you file a claim later on?
Yes, but expect the process to not be very smooth.
In this scenario, if the homeowner kept (and saved) the first check, and then filed the next claim three years later, (and replaced the roof) wouldn't he also get the depreciation at that time?
See answer on your other comment
What happens if the insurance company sent us the check for the total amount they thought it was going to take to fix everything minus the depreciation and I send in my invoices at the end but the invoices show that it was $9000 less to fix everything? Does the insurance company keep the depreciation amount and also ask for the $9000 back? Or do we get to pocket the $9000?
That's a question you'll probably find out when you do that, but most likely, the insurance company won't ask for the surplus money back.
lucky you lol. Homestead gave you the right answer above but if your determined to keep what you are not owed, 1. never bitch about high premiums again and 2. you may finesse that by just providing a "certificate of completion" from the contractor. They owe you the depreciation less your deductible. The adjuster may not want to draw attention to his or her overpayment. If they do you can torture him a bit by agreeing to pay back over time.
So you're saying that the homeowner can file a new claim for a previously totaled roof? This would enable the homeowner to pocket approximately 18k! Why would that be allowed? Seems to me that the roof should not be insured again until it is replaced. I would also think that any claims resulting from the negligence of the roof, (i.e. ceiling damage, rotten decking etc.), would also be rejected.
You're forfeiting any money from a claim if you don't get the repairs done. The money you've kept will be deducted from future claims. The money you didn't get will not ever be sent to you.
I need the best lawyer to sue a roofing company for keeping my money. The insurance sent them to fix my roof it's been passed 8 months
All this talk about property getting depreciated as time goes, but yet the premium stays the same like when the property was new? Shouldn't the premium depreciate as well?
Then how would the insurance company CEO's make $20M+ each year?
I don't understand where the $6000 2nd check comes from,if the roof repair is $15,000, dep. is $6000 and deductable is $1000 thats $7000 that YOU have to pay for the $15,000 job which leaves you with $8000 total to pay the contractor for the $15,000 job which would be $7000 out of pocket,where is this extra $6000 coming from? If the insurance company is giving $8000 but then sends another check for $6000 wouldnt that be $14,000 total the insurance company is paying you?
What if the insurance paid me the full amount and says they dnt need receipts or paper work
They just advised that I make sure I pay the deductible who ever installs the roof.
Can I keep the difference?
Who do you have insurance through?
My guess is that you have ACV coverage. True?
I have a situation where the roofer saw hail damage on my roof, convinced me to file a claim. I knew i had a high deductible but didnt realize actual cash value depriciated my roof so much. They also found hail on the gutters and one window and ordered them replaced. I get recoverable depreciation for them. I got non-recoverble depreciation for tbe roof and was given 2,500 to replace the roof, period. My check is in the mortgage lenders name and my name. Can i send the money back because i cant afford a roof? Does that count against me? Will the insurance cancel me? (Im in MN) btw. Similar but related issues.
Actually I've recovering from a stroke (hence I was convinced by roofer to make a claim) and I don't want to deal with finding the right roofer.
A claim is a claim. Too late to go back.
@UniversalStand yeah, I get that. But can they drop me from their policy if I don't get the repairs done? I get that they won't cover future incidents of hail, but will they not cover the replacement cost of the house if a tornado hits? For example.
@@edgarallpo the only thing they won’t cover again is if your roof sustains the exact same damage you had the original claim for. If your entire roof gets ripped off by a tornado that is an entirely separate claim. I have no idea about the subtle details but that amount sounds extremely low.
@UniversalStand the roof is 18 years old. They said there is hail. Is there often an appeals process? A way to contest it? I have progressive. Thanks again
What if you take pictures of the completed roof and include two independent satisfactory inspections of the completed roof and request the remainder of the RCA?
Am i legally obligated to show an invoice?
From a structural and practical standpoint, the primary concern is whether the work was done correctly and to a satisfactory standard.
Legally, we are generally not obligated to answer questions about who performed the work unless it's required by the terms of your insurance policy or if you're asked under oath in a legal proceeding.
Thus if my DIY repair passes inspection and meets professional standards, I should receive the full amount.
My roof was leaking and the repairs needed to be done immediately. I spent 5 days in the blistering sun doing the work myself. It was absolutely miserable.
You should be able to be paid for your labor. Talk to your agent about what your policy language allows.
My insurance company said it was ok to lie. His reasoning was we all make mistakes. Would love him to say that to the judge. Another words. It's ok to commit fraud. You go to jail for that people. Keep lying insurance companies. We know your trained to do that now. So lie, lie, to the day you die. Deny, deny, till the day you die. This is getting real interesting. Remember when your insurance company is talking to you there lying. Trained to lie tactics.
Insurance Policy stares: We will pay what you pay. If you pay less than the adjuster's amount, they keep the savings not you.
What if I forfeit the car?
These videos are about homeowner's insurance, not car insurance.
how did i end up here, youtube doesn't understand its demographic
i need advice on how to get my landlord to stop painting the black mold and do something about the termites collapsing a load-bearing wall in my 875sqft $2,250/m 1br apt.
i wish i had insurance...
or a house....
or a roof that wasn't one bad dream away from bursting gallons of mold kombucha on my head and waterboarding me
:-D
This is misinformation,this is not correct.
In the first claim insurance paid for a new roof system.
They will not again pay twice for the same roof system as they have already paid for roof replacement.
They will not honor a second claim on the same roof.
Period.
Well they may count the claim but dismiss any financial assistance.
Which is exactly what I said