Understanding the Insurance Claim Process for Hail & Wind Damage

At Roof Rite Exteriors, one of the most common questions we hear from homeowners after a hail or windstorm is:

“How does the insurance claim and payment process actually work?”

Insurance claims can feel confusing and overwhelming, especially when industry-specific terms like deductibles, ACV, RCV, and depreciation are involved.

This post walks you through the entire insurance claim process—from the first step of filing a claim to the end of the project—so you know exactly what to expect and how to protect yourself and your assets.

Claim Basics: ACV vs. RCV — What’s the Difference?

Actual Cash Value (ACV)

Actual Cash Value (ACV) is the value of your roof after accounting for depreciation — reductions due to factors such as age, wear, and condition.
With an ACV policy, you can typically expect to receive one payment from your insurance company.

Replacement Cost Value (RCV)

Replacement Cost Value (RCV) is the total amount it would cost to fully restore your property to its pre-loss condition.
With an RCV policy, you can typically expect to receive two payments from your insurance company.

Step 1: Filing the Insurance Claim

After a hail or wind event, the first step is filing a claim with your insurance company. Once the claim is opened, the insurance company will schedule an initial inspection to assess the damage to your property.

If damage is approved by your insurance company, a Claim Summary (or “Estimate”) will be generated, which outlines:

The scope of repairs (what needs to be done)
The total approved amount (how much the insurance company will pay)
Your deductible (how much you must pay out of pocket)
Whether your policy pays Actual Cash Value (ACV) or Replacement Cost Value (RCV)

Claim Basics: Understanding Your Deductible

Your deductible is the portion of the claim you are responsible for paying.

This amount is stated on your insurance policy and must be paid. It is not set by the contractor.

Did you know? Contractors cannot legally waive, absorb, or rebate deductibles, as those are all forms of insurance fraud.

When you partner with Roof Rite Exteriors, you can expect best-in-class quality of work and honesty: we pride ourselves on our well-earned reputation for integrity and high-quality workmanship.

Step 2: How Insurance Payments Are Issued

With an Actual Cash Value (ACV) policy, you can expect to receive one check from your insurance company after the initial inspection.

With an RCV (Replacement Cost Value) policy, you can expect to receive two checks after the initial inspection: one for the Initial Payment, and one for the Depreciation (or “Recoverable Holdback”) Payment:

First Check (Initial Payment)

Insurance sends a payment for Actual Cash Value minus your deductible
This payment enables work to begin

Depreciation (Recoverable Holdback)

RCV policies pay depreciation after the work is completed
During the project, this amount is held by the insurance company

Claim Basics: What Are Supplements?

Supplements are documents that correct or update the scope or estimate in an insurance claim.

There are:

Supplements identifying damage missed during the initial inspection
Supplements clarifying additional labor or materials required for repairs
Supplements correcting material pricing differences, especially when the industry price index (Xactimate) does not match real-world prices

Step 3: Completing the Work & Final Invoice

Supplements are documents that correct or update the scope or estimate in an insurance claim. There are three main types of insurance supplements.

Critical Rule to Know

The final invoice must match the total RCV amount listed on the insurance paperwork.

✅ If the final invoice matches the RCV, the insurance company releases the full depreciation payment
❌ If the final invoice is less than the RCV, the insurance company pays the invoice amount minus your deductible

This means:

You cannot receive more money than the work actually costs
Unused funds are not paid out to the homeowner

Insurance Fraud: What Homeowners Need to Know

Submitting an invoice for more than what the contractor was paid – in an attempt to profit from the claim by cutting corners or “pocketing” excess money – is considered insurance fraud and can result in claim denial, policy cancellation, and even legal penalties like jail time.

Why Working With the Right Contractor Matters

At Roof Rite Exteriors, we pride ourselves on our integrity and transparency. We protect our customers from unnecessary risks and questionable practices by adhering to high standards. Our goal is simple: restore your property correctly, honestly, and fully — ensuring you can rest easy.

Our knowledgeable, ethical team ensures:

Proper documentation
Accurate invoicing
Compliance with insurance requirements
No surprises for the homeowner

Final Thoughts

Storm damage is stressful enough. Understanding how your insurance claim works empowers you to make smart decisions and avoid costly mistakes.

If you have questions about your policy, estimate, or any step in the claim process, Roof Rite Exteriors is here to help.