Recently, Land Roofing Enterprises was asked to look at a home that was being sold. During our inspection, we found hail damage, which led to us calling their insurance adjuster. The adjusted responded with, “Yep, but we already paid out on this claim.” 

The homeowner accepted the insurance money and had used it for something else. This happens more often than you may think!

You may be wondering, “Is that even allowed?” and the short answer is yes, it is! However, it’s much more complicated than that.

How do insurance companies pay out claims?

Home insurance claims are typically either paid in increments, or the entire amount is paid upfront once the adjuster finishes their inspection, determines the damage, and all paperwork is completed.

Insurance companies often overestimate the repair amount, so homeowners may have money leftover. Leftover money is technically yours unless the insurance company asks for it back or if it’s against the agreement. 

If you, as a homeowner, accept the insurance money but use it for unintended purposes, that’s where it gets a little more complicated.

Why you shouldn’t use insurance money for something else

People may take the insurance money to pay off loans, debt, or something else, but insurance companies know if you haven’t repaired or replaced your roof. They keep track of this stuff in case people do take the money and use it for unintended purposes.

This means that if you don’t repair your roof as intended and then try to sell your home later, you are going to run into issues. It’s very difficult to sell a home that has roof damage, which means you will have to pay for the damage out of pocket if you want to sell your home.

Roof materials also increase in price as the years go on, not decrease. You would be paying more now than what it would have been originally.

Insurance money can be tempting to use, but can create future issues. Your roof needs to be in good shape! We understand people struggle, have debt, etc., but we encourage homeowners not to use their insurance money for anything other than its intended purpose.

If you hate dealing with insurance companies but need roof work, contact Land Roofing. We handle the insurance process for you!