💵 What Happens If I Keep My Insurance Money? 💵

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.

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

[cxqdrpg]

Just an FYI this guy has ACV vs RCV mixed up. Actual Cash Value means you get the actual cash value in the first check then the depreciation in the second check when work is completed. Most carriers have a $ limit when it switches from RCV to ACV

[reallyoldsubdude]

Wow! I never thought about keeping the money down here in the Texas Gulf Coast. But then again, we have State managed Wind Storm Insurance.

[alexandertague]

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!

[isabelroque]

A very good explanation about a insurance claim.

[barleyhops]

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

[coloradoskilife]

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

[SomeIsBest]

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.

[RachfordRoofing]

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.

[stevenevangelist]

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.

[TechCrazy]

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?

[thomast]

Most insurance companies are cancelling people after any kind of claim. If you go with another insurance company, and then have a claim will this still carry over?

[menardmall]

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

[onlineevangelization]

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

[jayc]

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

[watertiteman]

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.

[watertiteman]

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?

[mbwhxfc]

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?

[brokenarrowez]

Insurance Policy stares: We will pay what you pay. If you pay less than the adjuster's amount, they keep the savings not you.

[andreamachacova]

What if you change insurance? Do they still keep track of your repair invoices from the previous insurance company?

[stevenevangelist]

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.