What Does 'Fully Insured' Mean?
Fully insured means that the contractor has enough insurance, and the right kind of insurance, to protect you if anything happens on your property. Fully insured means they have both general liability insurance and worker's compensation insurance.
- General Liability Insurance protects you against damage to your property and restores you to your pre-damage condition.
- Workers Compensation Insurance is the insurance that employers have to protect their employees who are injured on the job. If the roofing company you hired does not have this insurance, and a worker is hurt while doing work on your property, the personal injury lawyers can go after you for the damages that ensued, resulting in catastrophic expenses.
How to Make Sure the Contractors are Fully Insured
When you hire a contractor, do not just ask for proof of their insurance, as it can be counterfeited. Instead, have the contractor's agent email or mail you a copy of their insurance certificate. Then you can see if the policy is enforced, or you can even call the agent to verify that it is a valid certificate. Taking these steps will make sure that you and your property are protected.
What Kind of Insurance Should Your Contractor Have?
3. Wondering Why Your Insurance Check so Low? Learn How It All Works
There are a variety of reasons why your insurance check is low; however, this issue mainly arises because there is a misunderstanding with how the insurance company works and the type of coverage you have.
Replacement Cash Value (RCV)
After you experience roof damage, your adjuster will need to do two things:
- Estimate how much it will be to replace your roof and fix the damages, and
- Depreciate the materials that are currently on your roof by assigning a depreciation amount based on your last re-roof.
That is why the check is often small because the deductible and depreciation are taken out of it. However, if you have RCV coverage, you will receive that depreciation amount at the end of the job through a second check. If you do not have this coverage, you will not recoup these costs.
Roofing is a complicated process, and taking on all the insurance issues alongside the repairs can leave you feeling even more confused. If you have any questions about the roofing or insurance procedures or anything involving replacing a roof, contact us today to speak with a member of our team.