Insurance payment for roofing replacement

[Viral Patel]

Hi All,

I need some help from experts in the forum.

The insurance company is not a std/one 25 companies in USA. It is small company.

My insurance company approved roof replacement and send me 30% payment with mortgage's company name on it. I need to mail check to mortgage company and back. All this will take me additional 10-15 days, if nothing gets lost.

Since insurance has approved roof replacement, I was thinking to go ahead and get it replaced and pay roofer 50% now instead of waiting for the check from mortgage company. After I get my 2nd payment, I pay my roofer the remaining amount.

I will not replace the roof if I m not getting checks from insurance company.

My concern is that I get roof replaced and insurance company doesn't complete their payments, then I will be big bill.

Few Qs:

I should wait for 1st check stamped by mortgage company before starting the roof work?

Since insurance company has approved the payment, can they stop my 2nd payment?

My insurance company said that they will not come and verify the roof. Has anyone experience it? How can I make sure roofer deos it properly.?

Thanks

[Jerry V.]

Erin, are you actually suggesting that he "not" do the roof and keep the $ they already sent!?  Noooo.... no way, right!?

Viral, I see that you ask a LOT of "what if" questions here on the BP site.  We all need advice but ... as in life and most things, in the end only YOU can decide what to do.

Whatever deal you work out with a Roofer, is what needs to happen.  IF that roofer will take partial payment now and the rest later, great! (most will not wait that long)  The way you are doing it, the roofer is employed by YOU, not the insurance company.  Whether the ins co pays or not, YOU are liable for paying the Contractor no matter what.  So if you have the $ now to pay or start things, you want to do it that way, and find someone that WILL do it that way ... go ahead.  Or, wait until the $/funds come in, then do it.  What's the difference really?  (unless there are major leaks now, but those can be temp'd to hold for a while.)

There is no reason the ins co wouldn't pay/send you the other payment.  You'll need to show Invoices that the work was completed, I.e. Roof, gutters, fence re-staining, screens, etc... If you don't have invoices showing the work was done, you won't get the $ that they held back (depreciation) for that part of the project. (if you don't replace gutters, they won't send you the portion they held back for those)

And, if you don't do the work (whether they verify or not)... if they don't have completed Invoices, they will send you a warning letter, to get it done with 30 days (typically), or they WILL (can?) cancel your coverage.  And then most times you won't be able to get coverage with anyone else, because that Claim/red flag will stay in the central database for all companies to see when they pull up that address.

Remember, you have time to do this work... generally 6mths-1yr.  So perhaps wait until after the summer heat?  But don't spend the $ and not have it when you need to do the work!

Good luck!

(w/ J's Roofing - Richardson, TX )