We try to help when a property is under contract or pending closing by deferring payment for damage repair costs and other work until the closing, and also accepting compensation from the proceeds of the sale. We are pleased to offer deferred payments, and it has proven to be a real benefit to those who must put on a new roof to satisfy the buyer’s demands but do not have the necessary funds available to pay for the roof out of pocket.
Because the price may be different for an insurance job than for a cash job, we are careful to explain the differences to the homeowner so that there is no confusion when submitting the invoice to the title company for payment. And, of course, when we are completing a job for cash, we will do what we can to keep the cost to the homeowner down as much as possible.
We are entitled to receive the amount the insurance company will agree to pay. We will submit an invoice in the amount we believe the insurance company should pay us, and we must be paid that amount at closing from the proceeds of the sale or other funds available to the seller. If our negotiations with the insurance company result in them agreeing to pay us less, we will revise the invoice and refund the amount that the seller overpaid.
Occasionally, the amount an insurance company agrees to pay the roofing contractor exceeds what was paid at the time of closing. Remember, the agreement is to do the work for the amount the insurance company agrees to pay plus the owner’s deductible and any supplements, plus overhead and profit if applicable. Therefore, if the insurance company agrees to pay more than the original invoice at closing, the homeowner will receive that extra amount but is obligated to pay it to the roofing contractor.
The title company handling the closing must collect the outstanding invoice for the roof work. They also have a responsibility to satisfy the pending lien before issuing the title policy stating that the property is free and clear of any liens or encumbrances other than those specifically listed on the title policy. This includes the covenants, conditions and restrictions, and other items. The buyer is not purchasing the property subject to the money owed for the roof work.
We often encounter clients with inadequate or no insurance coverage for hail or wind damage to their roofs. If this is the case for you, we will inspect and measure the roof, noting which sections need replacing and do not need replacing to help keep the costs down.
It isn’t unusual for homeowners to need a monthly payment program to afford to replace their roofs. If you find yourself in this situation, you might consider talking to your bank about a home equity line of credit to pay for the roof. As an alternative, we partner with a company specializing in this type of monthly payment program. Contact us to find out more, and we will help you with the details.
If you would like a free roof inspection and a no-obligation estimate of the costs to repair or replace your roof, we are happy to do that for you. We’re not just affordable — we are known for our high level of personal service and timely communications. To request a quote, call us at (719) 338-1441 or fill out the contact form below!
Also known as O&P, overhead and profit are costs that contractors are typically entitled to but that insurance companies don’t always approve. In the past, courts have ruled that an insurance claim estimate should include overhead and profit for the contractor because the claim estimate includes the cost of materials and the cost of labor. However, it does not always include an allowance for overhead and a margin of profit. Industry standards are that overhead is equal to 10% of the amount of each job and profit is equal to an additional 10% of the job.
Don’t be surprised if the claim estimate increases to include overhead and profit plus supplements, such as the fees for the building permit, sales, and use taxes, if they were not included in the initial claim estimate. It is called an "estimate" for a reason.
From time to time, we have had customers who mistakenly believe that the payment for overhead and profit included in their insurance claim belonged to them. Overhead and profit is not a bonus or windfall to which the property owner is entitled. Our agreement with the property owner clearly states that if there is overhead and profit in the claim, that money is owed to the roofing contractor.
If your project is the result of a hail or wind damage claim, there is going to be a deductible to pay. In Colorado, it is unlawful for a contractor to pay or waive any portion of a property owner’s deductible. We just are not allowed to do it. Deductibles vary. Some people have a $500 deductible while others may have a deductible of one or two percent of the replacement value of the property. In some instances, this could be equal to the cost of replacing the roof. While we cannot waive or pay your deductible, we can work out a payment plan for the deductible.
Jack Caton Roofing Team does accept credit cards payments using a third-party provider but there is a portal fee to the customer of 3.59%. Far too often, we receive payments sent to us via overnight mail, UPS, or FedEx. While we appreciate our customers wanting to get their payment to us, it’s unnecessary to expedite payment. So please don’t spend your money trying to get your payment to us a day or two earlier than regular first-class mail.
If you would like to send us your payment via an electronic funds transfer directly from your bank to ours, we will be happy to provide you with our wiring instructions. However, there is a small charge on both ends of the transfer. We are glad to pay our portion while the property owner pays any charges on their end. While this does expedite the payment, it is unnecessary unless the homeowner is out of the country.
Property owners are not expected to pay the roofing contractor until they have received payment from the insurance company. For this reason, we generally wait until we know their invoice is approved and the payment is authorized before sending our invoice.
Approval by the Regional Building Department is not a prerequisite of payment. There have been times when Regional Building was six months or more behind in their inspections due to storm damage to thousands of homes. We provide our customers with warranties that cover materials and labor. In the unlikely occasion that a roof doesn’t pass inspection, we will promptly do whatever is necessary to ensure that the roof passes re-inspection.
There are times that you may need a payment program to help you get the roof you need. For example, even if you have insurance coverage that essentially pays the total replacement cost of your new roof, you may have a high deductible and haven’t set aside the money to cover it. Other situations may call for a payment solution, such as insufficient coverage, lack of insurance coverage for your roof, or building department code upgrades that are required but not covered by your policy.
While we don’t offer financing through Jack Caton Roofing Team, we’ve done the research for you and found a few financing sources that might help you get the roof replacement you need. We have tried to find companies that offer affordable payment and term options. Give us a call, and we will be more than happy to help you arrange a reasonable payment program that meets your needs. (719) 338-1441
Jack Caton Roofing Team generally requires a deposit. Many roofers will ask for the first payment amount that the insurance company has sent you as your deposit. This amount is usually the replacement cost value minus the depreciation minus the deductible, which could be 50% or more of what the total cost will eventually be.
As a rule, we do not accept credit cards. As you know, there is a substantial fee to the merchant (in this case, the roofing company) for the convenience of a credit or debit card. This fee is around 3%. 3% isn’t much on a ten-dollar purchase, but 3% of a $7,000 or $10,000 payment is a substantial amount. We would rather keep our prices down than charge everyone more so that a few can accumulate rewards on their credit card. If you absolutely must pay with a credit card, we can make arrangements through Square, for which there is a 3% fee to be paid by the credit cardholder.
If it is an insurance job, we will prepare an invoice for the insurance company upon completion of the work and submit it to them via email, along with any necessary documentation they might require. We repair several thousand roofs a year, so we know all the insurance companies and their requirements. Any unusual supplements included on the invoice will have been previously discussed with them and approved by them.
As a general practice, insurance companies don’t send roofing contractors money. They send the homeowner the money. Their policy and agreement are with the homeowner, not with the contractor. After we know that the insurance company has approved our invoice and processed it, we will submit it to the homeowner. Sometimes a homeowner will receive our invoice before they get the payment from the insurance company. We don’t expect to be paid by the homeowner until they receive the insurance company’s final payment.