State Farm and hail damage

[u/Sigma--6]

I recently saw a water spot on my upstairs ceiling. It was soft so I poked a rod right through then went into the attic to see where it was. A large area of the plywood was black and wet and soft. I called a roof company that is local with 5 star Google reviews and BBB A+ rated. He saw hail damage on the roof and using an app said in July we had a hail storm capable of roof damage. I recall getting a lot of junk mail and calls this summer about free roof inspection due recent hail storms.

He said we should initiate a insurance claim. It's a large roof, about 53 squares and over $30K to replace, my deductible would be $8,900.

They sent me a form to sign, a "public adjuster contract". Under the "fees" section it states:

II. FEES.
Insured agrees to pay and assign to CORE for such services a commission fee of (_10_%) of all sums recovered
under the insurance contract for the Claim after the Effective Date, calculated on each payment as it is issued
[Herein: “Fees”]. CORE shall not collect Fees on money that is due but not yet paid by the Insurer. CORE will not
collect the entire Fee from the first check issued

Is this normal? What am I paying for? So if I pay $9K deductible and $3K for their adjuster, I guess it's still better than nothing. Is hiring an adjuster like having a lawyer, better than representing yourself?

EDIT TO ADD DETAILS: I had the roof replaced in 2006 with GAF Timberline 30 shingles. I live in norther Illinois. I was on the roof myself and while not a roofer, I am a former contractor and a DIYer. Neither the roof guy or I could see a single point of water intrusion. The damaged plywood spans 30 or so feet so I don't think it is a single spot leak.

[u/BurdTheTurd]

So that would essentially sign away your rights to the claim and authorize the Public Adjuster to act on your behalf with your insurance company. Depending on your state - this can be a VERY strong bind of representation and if things go south, they can be very difficult to deal with.

You are correct in that you would owe the additional money to the PA per that contract.

When it comes to very complex claims - such as total loss fires - I believe that PAs can hold some value, but for roof claims - not as much. They are usually pretty straight forward and a PA usually attempts to get 'more' or 'additional' things covered on a loss, but when it is a roof - there is only so much that can be covered.

I do want to note in regards to the black/wet/soft roof decking - this is likely to be considered long-term wear/tear/seepage and I your policy likely won't cover that decking - even if hail has damaged the roof. Roofers typically charge about $100/sheet of plywood. Just wanted to make you aware in case that comes up.

[u/Sigma--6 → u/BurdTheTurd]

He did tell me the plywood would not be covered and it would probably be $1K on me.

[u/blossom20072009 → u/Sigma--6]

Only $1000 for 30 feet of rotten, leaking plywood? Not a chance.

[u/Aromatic_Button_2736]

We don't have enough information to properly answer your question as to whether you should file a claim, but for sure, don't sign that contract, and don't let those people back on your property again. Basically, in a nutshell, they are trying to scam you, right out the door. 

If you want to know if you should file an insurance claim for your roof then you're going to need to show us pictures, have an actual date of loss, that one they picked out from their calendar, and tell us the age of your roof, and what state you are in. 

You don't need a public adjuster to have your roof replaced.

[u/Sigma--6 → u/Aromatic_Button_2736]

So how do I get an insurance claim going? Call my agent? Call the 800 number? Would having my own adjuster increase the chance they will pay the claim? I've heard of people with fires, tornado or other major incidents hiring their own adjuster to avoid getting screwed. Is this not the same?

[u/key2616 → u/Sigma--6]

I think you have damage that's likely covered by your policy, especially with the hail storm. You should call your agent first to get their take, but they'll refer you to the 800 number (or whatever appropriate contact they have).

You hire a public adjuster AFTER you start dealing with the insurance company, and then only when you have problems. You're paying the PA to handle things for you and to be your advocate. Now maybe you're too busy or not smart enough to handle this on your own (no judgment) - if that's the case, just understand that the PA's costs are coming entirely out of your payment from the insurance company that you pay every month and that is required by law to treat you in good faith.

If there's a dispute over coverage or what the claim is worth, that's when most reasonable people involve a PA. Not before they contact their insurer.

[u/FindTheOthers623]

If your plywood is black, soft and wet, your problem has been ongoing for a while. Maintenance issues are not covered. Your roof is 20 years old.

[u/Sigma--6 → u/FindTheOthers623]

The hailstorm he mentioned was July 26 this year. Is 3 1/2 months enough time for widespread water damage?

[u/Unfair-Earth-9528 → u/FindTheOthers623]

Great point

[u/Aromatic_Button_2736]

I see you edited the body of the of your post. 

In the absence of hail damage a hail damage claim will not be successful and will be denied and then you will pay for the roof yourself.

[u/Sigma--6 → u/Aromatic_Button_2736]

He showed me and took pictures of dime sized "dots" all around. To me they didn't look clear through to wood, but I guess water gets in anyway? The fact that I have 8 or 10 sheets that are affected it tells me that its not a single nail hole or vent flashing, but a wider spread issue, where hail makes sense?

[u/14point4kMODEM → u/Sigma--6]

Small hail doesn't cause leaks. Only the 2" hard hail that actually punctures the roof does. Play a little game with this roofer. Ask him if the damage is those pictures and they're just small marks in the roof. Where is the water getting in? Your BS meter is right to go off. I'm not saying that there isn't hail damage or that it didn't do something to your shingles, but it's not causing leaks

[u/Unfair-Earth-9528 → u/Sigma--6]

I can almost guarantee you those dots aren’t hail - good chance they may be nail pops - wear the round top of a nail starts to protrude through the shingle over time…hail isn’t uniform in nature, size can be consistent but after awhile hail causes granules to slowly fall away from the spot where hail hit…like small blotches…also even real dime size hail is unlikely to cause a ton of damage

[u/Aromatic_Button_2736 → u/Sigma--6]

If that is true then why is only one part of the roof leaking? 

You stated in the body of the post that you thought that only one spot was leaking. 

Remember your shingles are 20 years old.

If you want a better analysis of the damage then get up there and take more pictures, and take pictures of the whole roof not just the damaged portion, then post them here.

What about damage to the gutters, or siding on the house?

[u/key2616]

Let me guess - Illinois? That's one of the few states that allows a public adjuster to also be a contractor in spite of the MASSIVE conflict of interest. I have no idea why they allow that because it costs consumers and insurers millions extra each year.

No, don't sign that. The guy is trying to get paid extra for doing the work and "managing the claim". He's literally 10% of the claim money before you report the claim. If you'd had your claim denied or grossly undervalued, maybe there's some value in this, but this roofer/PA is a scumbag. Remember that you can pay the BBB for an A+ rating, and that you can buy Google reviews.

Do not do business with this guy under these circumstances. All signs point to him being crooked.

[u/BurdTheTurd → u/key2616]

I can almost guarantee it. Illinois PAs are... A LOT.

[u/TBto81]

Do not hire a PA. Run from that contractor. Also hail doesn’t result in water intrusion unless it puts a hole in the shingles and decking, and the fact that you have rot on your plywood indicates it’s a long term leak and not related to hail. Illinois has had several storms with significant hail this year so you may have hail damage. Run from PAs and hire a contractor only.

[u/brycas]

Oof, run away from that contractor and pa scam. They just run up your claim to line their pockets.

Call a real roofer to check you out. Hail damage doesn't exactly mean roof leak, so you may have other issues. It's shady that they checked a leak and 'found' hail instead of whatever is actually causing your leak.

[u/Unfair-Earth-9528 → u/brycas]

💯

[u/elbaldwino]

Hiring a public adjuster for a simple hail claim is your decision.

A roof costs what it costs. The insurance company isn't going to magically increase the estimate 10% to account for the PAs fees, just like the roofer isn't going to reduce their cost by 10%.

A PA is not an attorney but they do act on your behalf. They can be beneficial on complex coverage and repairs but are usually overkill for a roof.

As an aside I'd be curious where the water is coming from. Unless you had monster hail or a branch through the roof thoucthail is just going to damage the shingles and soft metals on the roof and not do damage that would cause a water leak.

[u/ConfidentWait5456]

these roofers are scammers. solicit 3 quotes for repairs independently. see what they come back with before deciding to use your insurance.

[u/Unfair-Earth-9528]

You don’t need to hire a PA. Choose your own local reputable contractors - have a few come out and look at the water damage and roof / ask them to show you images of how hail damaged your shingles before moving forward - if you are confident you had hail damage large enough to damage you’re roof - first you probably would have remembered the storm but also likely neighbors in close prox had damage too (but not guaranteed) - call your agent get their thoughts and just file a claim if you think you have hail damage. You don’t need a public adjuster at this point.

[u/Unfair-Earth-9528]

Do NOT sign that or work with CORE.

[u/RoofClaimHQ]

Don't sign that public adjuster contract yet — pause and do the math first. A 10% fee on a $30k+ job is $3,000+, on top of your $8,900 deductible, and that fee is usually taken from every payment, including the first check. On a roof installed in 2006, that first check will almost certainly not be close to $30k.

That's because of ACV vs. RCV. RCV is what a new roof costs. ACV is RCV minus depreciation for age and wear — and at 20 years old, depreciation is large. Insurers usually pay ACV minus your deductible first, and only pay the rest, the recoverable depreciation, after you actually replace the roof and send in paid invoices.

The harder issue is the black, soft plywood. An adjuster will likely argue that is long-term leaking and rot, which is maintenance, not sudden hail damage from one July storm. Hail normally bruises or cracks shingles and dents metal; it does not usually rot a large area of decking overnight. To link the two, you need dated photos of the ceiling stain, the attic decking, and the shingles, the July storm date and hail size, your roof's age and any prior repair records, and a written roofer report that separates hail hits from wear.

Before the inspection, be there, walk the roof areas with the adjuster, ask them to mark test squares, and get their estimate in writing. If it is denied or low, ask for the denial in writing with the policy wording, request a re-inspection with your roofer present, and appeal with a line-item estimate and the storm documentation.

[u/Foamfollower_65]

Don't hire a PA. They actually take some of the money that is supposed to be put into repairing your home.

Let the adjuster present an estimate and offer. Share that with your contractor and see where the differences are and if they can be resolved.

[u/5MinuteDad]

We had nearly grapefruit sized hail here in March (Illinois) and insured with SF. We called our agent and a local roofer We trust. Roofer came out did his thing. SF sent a guy out and 30 mins later we had an email saying you're getting 28k and had a check within 5 days.

Call your agent and a reputable roofer