Benefits of Working with a Licensed Adjuster

April 06, 2020

A contractor who possesses the All Lines Adjuster License must complete extensive studies and pass a test to become licensed. This license includes property and casualty for residential, commercial, automobile, farm & ranch, inland marine, ocean marine, and Workers’ Compensation.

The following provides a bit more insight into the lines of insurance an All Lines Adjuster License holder is qualified to support.

  • Residential – property used primarily for dwelling
  • Commercial – property used for business, recreation, worship, etc. (not for dwelling)
  • Auto – cars, motorcycles, and covered vehicles used for non-commercial transport
  • Farm & Ranch – dwelling, outbuildings, barns, animals, equipment, crops in storage (crops in the field typically require separate crop insurance)
  • Inland Marine – commercial trucks in transit and their cargo; docks, piers, bridges
  • Ocean Marine – sea vessels and their cargo (the first type of insurance as we know it today)
  • Workers’ Compensation – workers injured while on the job

Thus, earning the All-Lines adjuster license certifies that an individual can handle all the above lines of insurance and truly represents the most comprehensive license available.

The staff at Metro City Roofing have earned this All Lines Adjuster License. As such, we can best inspect and assess damages, with the same lens that your insurance agent will.

All Lines Adjuster License qualifications

  • Age 18 years or older
  • United States citizen or legal alien who possesses a work authorization from the US Immigration and Naturalization Services
  • Complete the required All Lines Adjuster Pre-licensing coursework and certification testing
  • Pass a background check, including fingerprint submission

Different types of adjusters

Let’s now discuss the different types of adjusters. The staff at Metro City Roofing are contractors with the All Lines Adjuster License credentials – we are not insurance adjusters.

Independent adjusters generally work for Independent Adjusting Firms. These individuals are deployed wherever needed on a contracted basis. Where an independent adjuster lives has no bearing on where s/he works, so when meeting with an adjuster representing your insurance carrier, this individual may not live locally. As contractors, independent adjusters work for themselves and can take deployments when and where they want.

Catastrophes occur from coast to coast. Forest fires, floods, hailstorms, ice storms, earthquakes, or tornados are just a few of the major natural disasters that occur every year. For the insurance industry, these events mean the mass deployment of thousands of insurance adjusters all over the country.

By contrast, Staff adjusters are salaried employees of the insurance carrier. They may still travel, but the likelihood is these adjusters work within a specific region, and often service the metropolitan area in which they live. Staff adjusters have steady, reliable work from their carrier, which is excellent for those who may need to stay close to home. The tradeoff for working where you live is that compensation is usually lower than what an independent adjuster earns.

What Roofing Contractors Can & Cannot Do

One cannot be both a contractor and an insurance adjuster; this would pose a conflict of interest. Contractors can inspect your property, write up an estimate of what it will take to restore your property, and complete an agreed scope of work. It is also proper for a contractor to spend time with your insurance carrier to discuss the scope of your repairs. A contractor may also hold an All Lines Adjuster license, which will better equip him/her to inspect and assess any damage with the same lens as an insurance adjuster. 

Answering basic insurance questions

The following are questions and answers we receive from homeowners associated with the insurance claims and roof replacement and restoration process when hail damage is involved.

Is the insurance adjuster’s estimate final?

No. There are many factors in this process. Commonly, your contractor and the insurance adjuster will need to reconcile several items. As a homeowner, you should not be concerned that your initial carrier estimate is different from your contractor’s. Your contractor should be your advocate to maximize your claim value so you can confidently and thoroughly complete the scope of work. Your contractor should also submit to include any code requirements so that your new roof meets the current code.

What are the terms listed on my insurance estimate: RCV, ACV, and Depreciation?

RCV stands for Replacement Cost Value. RCV is the current retail value amount to replace your damaged items.

ACV is the Actual Cost Value, which is the RCV adjusted for age and condition. As an example, if you have an asphalt shingle with a 30-year life expectancy and your roof is 15-years old. Your insurance claim RCV is $10,000. Your ACV would be $5,000 (50% of the $10,000).

Depreciation or Recoverable Depreciation is the difference between the RCV and the ACV. In the above example, this represents $5,000. Provided you have a RCV insurance policy, you are entitled to this $5,000. With most insurance companies, Depreciation is paid after you or your contractor submits a final invoice stating all work is completed.

Your Deductible is the amount for which you, as the policyholder, are responsible. The initial check you receive from your insurance company will also deduct for your Deductible. If you have a $1,000 deductible, per the example above, the initial check you receive will be $4,000 (ACV – Deductible). Once you complete all the work, you will receive your Depreciation.

Why is the check I received from my insurance company less than the total amount to replace my roof?

There are two main deductions from an insurance company’s estimate of what your roof replacement or repair will cost. The first is your Deductible, and the second is for Depreciation.

Metro City Roofing is a licensed and experienced roofing contractor in Denver, Colorado. We are ready to help with all your roof replacement and restoration needs. 

Contact Metro City Roofing today for your free roof inspection.