If the insurance company gives us money to fix the roof and we don't?

Question

we had a pretty bad hail storm and the insurance company is going to give us money for the roof. we had someone look at it and the damage is really minor. if we use the money for something else besides fixing the roof what will happen? will we get in trouble?

Answer 1

Likely, the amount is small enough, then, that the check won't be made payable jointly to you and the mortgagee.

If you don't get the damage repaired, your insurance company can cancel your policy, for having unrepaired damage.  They could also deny another roof claim, or decrease the payout for a roof claim, by the amount they've already paid you plus your deductible.

Answer 2

The money you have been giving is just a partial payment.  it is the Actual Cash Value, not the replacement cost.  It factors in depreciation.  If you don't fix your roof you leave the extra money on the table.  Also you can not claim another claim for a roof that has been paid out to be replaced.  You will also have to disclose it on your paperwork when you sell the house that the is a defect.  At that point you will probably have to fix it to sell your home and you will have to pay for the whole roof out of pocket.  If I where buying you home and no that you got money from the insurance company, I would expect the roof to be repaired or replaced.  If you think you can hide this the insurance will report it to clue and when someone else goes to get insurance on you home it will be noted that there was a claim paid.   I hope this will help you to make a wise decision.   I have seen people get multiple roofs in a couple year span, because of the storms that have been coming through year after year.

Answer 3

You could also just fix it yourself and keep the rest of the money. But I agree with the first person, if the roof doesn't get fixed, it will affect the house's value in the long run.

Answer 4

Well if they find out you might get in trouble. Plus the next time you get hail damage to your roof & there is still damage on there from last time, they wont fix your roof....I would just use the money for what it is for & fix the roof...They call they insurance fraud if you dont & you can get in trouble...

Answer 5

You should fix the roof.

If you file a future claim on the roof (and you will when it starts to leak) - the insurance company will be able to tell that the roof was not replaced and will not pay you again for it.  You don't get paid for the same roof twice. And that roof is going to have to be replaced at some time in the future. Only then when you do it -- and have to pay out of pocket for it --it will be much more expensive to do because shingle prices go up.

If the insurance company finds out you did not replace the roof- they can cancel your coverage and invite you to get a policy somewhere else.

The hail damage may be minor now. But, as the year progresses the shingles heat and cool causing them to expand and contract. As that happens, hail bruises will rise to the surface.  So the damage may not show now....but it will be there.

All of your neighbors will have new roofs....so the value of your home will be decreased.

Answer 6

If you do not get your roof repaired, you will not be able to file another claim if it does start leaking. Your best bet is to get your roof repaired.

Answer 7

You can always keep the money.  You should keep in mind that if your roof does start to leak, you can't file another claim.

You should also know that if you do not fix it, there is always the possibility of water intrusion into your attic which is conducive to mold growth.  That will not be covered either and could end up being a very expensive gamble for you.

On the other hand, nothing might happen and you get to keep the money.