Insurance Claims

A Brief Overview

It is illegal for the insurance company to increase your premium because you filed a claim due to a natural event, so don’t worry about filing a legitimate claim.

On the other hand, insurance companies keep record of everything and if you file excessive “zero dollar” claims then your policy could be dropped. To protect yourself, it is best to know if a claim is necessary before you officially file the claim. Indigo State Roofing will send a trained residential roof inspector to your house and inspect your home for storm related damage.

Following the damage assessment, the representative will review your images to explain any damage that is found and make a recommendation as to the necessity of filing a claim or not. We will never tell you to file a claim we will only give you options.

Be careful of fraud.

This industry is notorious for the number of unlicensed independent people who work out of their trucks or trailers. Many of these so-called companies change their phone numbers as well as their place of business many times in one year. Companies like these are willing to say and do anything to get your business – even break the law.

A common pitch you may hear from a salesman is, “we’ll cover your deductible so you have no out of pocket expense.” Sounds great, doesn’t it. But what they don’t tell you is they must defraud the insurance company to make that happen. It’s easiest to understand when you see the flow of documents and money. Here is the basic process:

1. 1. The adjuster approves a Replacement Cost Value (RCV) and payment for what has been damaged and issues an estimate and the 1st installment check (a percentage of the full replacement cost).2. The chosen contractor will complete the work, usually collecting the 1st check when starting the work (NOT upon signing a contract).3. After completion the contractor MUST submit a “Certificate of Completion” to the insurance company, which states the work has been completed and the price it was completed for.

   4. In processing the “Certificate of Completion” the insurance company will compare the adjusters (RCV) and the contractors completed price, before releasing final payment.

IF THEY ARE DIFFERENT THE INSURANCE COMPANY WILL PAY THE LESSER OF THE TWO!

Step 4 is where the fraud occurs if you’re not paying your deductible. The contractor must submit a higher price to the insurance company and a lower price to the customer – there is the fraud.

You may say, “So what… I’m not committing a crime if the contractor sends in the paperwork.” Unfortunately, this is where you are wrong. The insurance fraud laws are written to include both the contractor and the homeowner – even if you didn’t know what the contractor did. Each state statute carries a different number and slightly different language, but each state has an insurance fraud statute and when violated it is considered a state felony.

YOUR ROOF JUST ISN’T WORTH THAT!

If you don’t believe this is true, call your state board of insurance or your insurance company and ask them. Or, you may be able to simply find it on your Adjusters Summary. This information is important to you. Don’t take our word for it check it out for yourself.

The most discouraging reality about insurance fraud is that some companies are bending to the pressure of competition and following this practice. We believe this behavior is unacceptable. It is our goal to provide excellent products and services to our customers – we strive to solve problems not create them.