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In July 2021 my roof was damaged by a rain/hail storm. I foolishly contracted with a roofer who was coming around to houses with offer to replace the roof and just accept what the insurance paid. The first check I received for $9100 I gave to the company. The second check was for $5400 for recoverable depreciation. I did not give this to the company, I kept it. The letter from the insurance co seemed to say this was my money. The 3rd check was for $2100 which was a payment to the company for the gutters(which I declined at first, then changed my mind). I have not remitted this yet.
Now I got a certified letter with a very brief invoice( written by a 2nd grader) stating I owe the company the recoverable depreciation or they will contact their lawyer for a lien.
I realize I owe them the $1000 deductible and the $2100 check. They owe me $500 for two referrals I provided to them. Thus, in my book, my payment to them would be $2600 total.
Regardless of what the correct total is I intend to report this company to the Registrar of Contractors and to another Consumer Protection Agency for their underhanded practices.
My question is: what is recoverable depreciation????
You owe the roofer the funds from the recoverable depreciation payment.
Recoverable depreciation is the difference between the Actual Cash Value of your roof and Replacement Cost Value. The first check the insurance company sent was the depreciated value of your roof. The second check was the difference between the depreciated value and the cost to replace the roof. The roofer is entitled to this amount. The sum of these two checks is the cost of replacing the roof and is the amount the roofer should receive.
The insurance company letter accompanying the check for the recoverable depreciation probably said you were entitled to receive this amount because you purchased Replacement value insurance rather than the lower Actual Cash Value insurance. This doesn't mean you can short-change the roofer.
Pay the roofer the amount that is owed. The $9100 representing the depreciated value of the roof and the additional $5400 needed to replace the roof.
As an aside, do you have a written contract with the roofer?
Read your contract, OP, where you will likely find that the recoverable depreciation check from your insurer is owed to the roofer. In the future, if you wish to profit from a destructive weather event, take the settlement from your insurance company, negotiate with a roofing contractor for a lower price, and pay them directly.
AdjusterJack: They are licensed. And they are one of the big ones in Phoenix too. If I told you their name, you would know them. They have contracts with at least 7 people on my block due to their house to house marketing. But the neighbors who did not go with them had a much easier transaction because of the local roofer they chose. I was just uninformed and fell for the smooth talking guy who came to my house.
I was just uninformed and fell for the smooth talking guy who came to my house.
Ooopsie. IIRC the only thing I've ever bought from a door-to-door salesperson was cookies. Granted, the salespersons weren't particularly smooth-talking but they sure were cute! Pretty hard to suffer buyer's remorse over baked goods. The package was empty within 48 hours!
In July 2021 my roof was damaged by a rain/hail storm. I foolishly contracted with a roofer who was coming around to houses with offer to replace the roof and just accept what the insurance paid. The first check I received for $9100 I gave to the company. The second check was for $5400 for recoverable depreciation. I did not give this to the company, I kept it. The letter from the insurance co seemed to say this was my money. The 3rd check was for $2100 which was a payment to the company for the gutters(which I declined at first, then changed my mind). I have not remitted this yet.
Now I got a certified letter with a very brief invoice( written by a 2nd grader) stating I owe the company the recoverable depreciation or they will contact their lawyer for a lien.
I realize I owe them the $1000 deductible and the $2100 check. They owe me $500 for two referrals I provided to them. Thus, in my book, my payment to them would be $2600 total.
Regardless of what the correct total is I intend to report this company to the Registrar of Contractors and to another Consumer Protection Agency for their underhanded practices.
My question is: what is recoverable depreciation????
You haven't described any underhanded practices? What did they do that is reportable?
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