“Waiving deductibles” in this market has become a sad reality for some contractors who lack ethical business’ practices, and even more sad for the homeowners that it is misleading to.
Here is the TRUTH behind companies who advertise “Free Roof, Pick a color”
Its true that roofers are accustomed to working for insurance proceeds. However that deductible is considered PART of those proceeds. Its important to remember before we get any further on this topic that a company AND homeowner who participate in this scandal have BOTH committed a FELONY in the great state of Texas. Now, We don’t personally like committing felonies, Ms Jones, and we would never ask you to do so either.
I would be hesitant of the integrity in a company that was going to tear off the ENTIRE roof my property, PUT A NEW ONE BACK ON that was responsible for protecting what is probably my biggest investment to date, my HOME, and are going do so by committing insurance FRAUD. Is the type of person who commits FRAUD the type of person you trust preforming work on YOUR biggest investment Ms. Jones?
When discussing this matter it is important to have a general idea of how this process plays out. I know that you have never filed an insurance claim for storm damage involving hail or wind before Ms. Jones, so if you don’t mind I would love to give you a readers digest version of how this works. If you have an RCV policy, as required on all mortgaged homes, than the insurance company is responsible for the REPLACEMENT COST VALUE of your roofing system, minus the deductible. Taking advantage of a policy you pay for can only benefit you Ms. Jones. Since you signed a “due diligence clause” with your carrier stating that you WILL REPORT any storm damage to the insurance within 1-2 years (time depending on carrier) allowing them to pay for the damage and protect the property. Storm damage can usually NOT be seen from ground level therefore in most circumstances it requires a trained eye to get ON THE ROOF and inspect. (RKG offers this service free of charge). The insurance company WANTS to know about this damage and preferably before things get worse creating interior damage. Not paying for interior damage saves the insurance company money and the homeowner a headache, which is why this clause exist asking that you report damage asap. Damage to a roof will NOT go away by not looking at it. With more and more elements that it endures, eventually those leaks WILL come on a roof that has sustained damage. Not reporting the damage could not only lead to a void in your systems manufacturer warranty, but it could also result in the time lapsing since the loss date resulting in being out of the window of coverage. If the insurance doesn’t cover the damage because it was not reported during the coverage window, you will end up being responsible for a lot more financially than JUST the deductible, which I will get back to.
The deductible is the amount pre- negotiated between you and your insurance company. In the event of damage occurring to your system, this is ALL you, the homeowner, will be obligated to pay. No matter what unforeseeable things come up involving the repairs (as they often do in construction) that cost associated with change orders is supplemented and paid for by the insurance company, not the homeowner. Ms. Jones, you can rest assure knowing that deductible amount is ALL that’s going to come out of your pocket during this entire process…NO. MATTER. WHAT. Most deductibles are 1% of the homes value. Make sure when negotiating this with your carrier you have your deductible amount set to a place where you would be prepared to cover it in the event of storm damage to your property. (If you need help covering deductible amounts, RKG does offer financing through a 3rd party affiliate available to homeowners with a 540 credit score or above)
When establishing and negotiating pricing on storm related repairs it’s very simple. Your carrier uses an estimating program called exactimate (which is incorporated with market industry current pricing on labor and materials.) We ALSO use exactimate for estimates, which means once the scope of work is determined, pricing for it is easy to work out. It’s comparing apples to apples. You will see the RCV number written as what the replacement of damaged property will cost via exactimate. Now subtract your deductible. That’s what insurance is paying. Now wait a minute….The Industry pricing software says that RCV is the WHOLE amount needed to accurately put the property back to pre storm condition and back to a warrantable state….. Along with a RCV number, you will also see an ACV number (actual cash value) which will be the first check you receive, and depreciation (which is paid out once the insurance company receives proof the work has been accurately completed.)
Now if Industry pricing states that $XXXXX is NESSECARY to accurately preform this job on your home, you have to be wondering how these guys swing it? How are they able to offer “Free Roof Pick a Color?” The answer is….by pulling the wool over your eye. A lot of times they will use subpar cheap labor crews who aren’t experienced or certified in installing the system up to manufacturer specs. Some “companies” instruct their crews to skip crucial steps in the tear off process to cut cost, such as leaving on the old felt paper and not tearing down to the decking. They will leave old damaged penetrations. Sometimes they will even buy “open boxed” shingles that are usually sold out of warehouses after being discarded by the manufacturer for not making it through their warranty specs test. Some cut cost by going on with a material that is sub par to the one you had before (which insurance paid for). (example:replacing a 30 year shingle with a 3 tab) Some of them DO ALL OF THESE THINGS! Now Mrs. Jones….you have “saved” the deductible amount….but at what cost?
We don’t want to put you down Ms. Jones and in fact applaud you for being the type of person who wants a good deal. After ALL who DOESN’T like a good deal? At RKG we aim to educate homeowners so that the “good deal” you thought you were getting as a smart and savvy homeowner, doesn’t end up costing you in the long run!
At RKG we don’t cut commit felonies and we don’t cut corners. In fact, we do EXACTLY THE OPPOSITE! We believe that you are an intelligent person who makes good decisions and cares about the quality and longevity of your roofing system. If this is true Ms. Jones, than we are like minded. Like yourself, I ALSO love getting a good deal and even more so I love offering them to my customers. When you choose RKG as your contractor you can rest easy knowing you have an insured, Owens Corning preferred contractor by your side. You know that the crew is trained and diligent in installing your new system to manufacturer specs so that in the event you need to cash in on the ten year warranty that a properly installed system comes with, it will be valid. On top of that there a few FREE UPGRADES that every RKG roof comes with. You see Ms. Jones, at RKG we offer a 5 year labor warranty on all 30 year roofs so we want to make sure we install a system we are proud to back up. At no additional charge to you, your roof is going to get starter shingle ( extra protection against wind), synthetic underlayment (takes the place of felt paper that is easily torn and provides extra protection against leaks), Ice and Water Shield around all penetrations and in all the valleys (I&W is a self sealing membrane that takes the place of metal flashing that corrodes over time causing leaks. Ice and water will not deteriorate over time due to elements.) and we are also going to upgrade your ventilation system to ridge vent. (better ventilation makes you less at risk for moisture and heat build up in the attic which can lead to mold, mechanical damage to the shingles, and an increased electricity bill!) Ridge vent takes the place of those ugly whirly birds that stop turning over time, and is sleekly installed to the ridge of your roof blending right in the rest of the shingles. You can see these upgrades In more detail by clicking here: https://rkgllc.net/rkg-upgrades
So as you can see Ms. Jones…there is more to the story than these “contractors” are telling you when promising NO out of pocket cost. Business’ of that integrity also probably won’t be around to honor any labor warranty they claim to give you on their janky workmanship. RKG is a locally owned and operated company who will be here to stand by our work for years to come. We are trustworthy Texans, like yourself.
We hope this blog has been helpful to you, and Ms. Jones, we eagerly look forward to doing work with you now, or when you need us in the future.