Here at Mammoth, we want the process of dealing with the insurance company and
mortgage company to be as smooth as possible for you, our valued customer. You may notice
that there is no price listed on our Agreement for the work. We want to make sure we shed
some light as to why, and provide some clarity on our process and the way it is structured so
that our customers know exactly how much they pay our company for our work and when.
Below is a step by step for you to keep in your file so that you can refer back to it as needed
throughout the process.

 

Your insurance company usually will issue the first payment to you when you receive the
initial estimate from the insurance company (sometimes called a “Statement of Loss”). This
check amount represents the “Actual Cash Value” (ACV) less your deductible. The second
payment is usually a supplemental payment which accounts for any requested changes on
the estimate submitted to the insurance company from Mammoth. The third, and usually final
payment, will be issued after the insurance company has received documentation from
Mammoth in the form of a “Final Invoice” or “Notice of Completion,” which shows an
itemized invoice (lists the line items) for the work completed. Below gives a more detailed
“Time Line” of the process so that you know what to expect every step of the way.

 

1) Provide your Mammoth Rep with a copy of the signed Agreement, signed 3rd party
Authorization, and a copy of the original insurance paperwork. No payment check is
required by Mammoth at this time. We do not collect the 1st payment until after the roof is
complete. Like we mentioned before, you might notice there is no price on your
Agreement. We need to be able to submit a supplement to the insurance company to pay
for items that were not initially included, or may come up during construction. A fixed price
may bind us to the price written, and the insurance company may not approve a
supplement request if it appears we already committed to a price. Also, if our price is
higher, and we had written the price on the Agreement, this would obligate the homeowner
to pay the difference between the approved amount (which may be less than the listed
price) and what Mammoth needs to do our great work. Structuring our Agreement this way
allows us to supplement the insurance company asking to pay for any items not included in
the initial estimate, but commits Mammoth to billing and collecting only the amount
approved by the insurance company. In this way we are able to request that the insurance
company pay for existing items on your house , items that come up during project
construction (additional layers of shingles or felt, mis-measurements , etc) and other items
needed to complete the work the right way (see below for more examples).

 

2)  Mammoth will submit to the insurance company any supplemental items to complete
your roof according to manufacturer’s guidelines, municipal codes, permits and any items
necessary to get your project fixed that are not included in the initial insurance estimate.
This will be in the form of a detailed estimate that highlights any differences between the
original insurance estimate and the supplemental items requested. Keep in mind, the
insurance company will pay for items existing on the home, they will not pay for any
upgrades. However, Mammoth will never adjust our high quality of work even if the
insurance company does not approve our requests. Some common examples of items that
we request to add, and are often approved are: ridge cap, starter, cornice returns, 30lb felt,
rain diverters, step flashing, residential supervision / project management , tarps for
protection of the home during construction, two story charge, steep charge, permit, and
“overhead & profit”. Even if these items are not approved, we still follow the same
practices when it comes to installation and our high quality of work and do not charge our
customers anything extra for the approved scope of work. This means there is no
additional cost to the homeowner unless a customer wanted any upgrades not included in
Mammoth’s installation, at which point, we would discuss pricing and put it in writing for
agreement. Our Reps spend the time to review our process in detail and the items we are
requesting so that you know how these items affect the durability, and quality of your roof
installation and why it is important to know why we ask for these items in case the
insurance carrier has questions regarding our supplement.

 

3) The insurance company will review our request and make any changes necessary.
Once the insurance company has reviewed and made changes to the estimate, they will
issue a revised copy of the insurance estimate reflecting our requested changes. Some
items may be approved, some may not be. Our commitment to our customers is to only
bill for the Replacement Cost Value (RCV) for the items that we have completed. It is illegal
for a contractor to bill for any items not completed because this is what will “trigger” the
release of the depreciation for those items.

 

4) Once you have received the updated copy of the insurance paperwork reflecting our
requested changes, give a copy to your Mammoth Rep. We will use the updated copy
of the insurance paperwork to draft our Final Invoice. We cannot draft a Final Invoice
without this updated copy because we will not know the items that are approved and items
that are not. According to our Agreement, we may only bill for the items approved by the
insurance company and completed by Mammoth. It is vital that we get this updated copy,
because otherwise we cannot not know what, if any, items may need to be removed from
our estimate that were not approved by the insurance company. Once we have drafted the
final invoice reflective of the updated insurance paperwork, we will send a copy to both the
homeowner and the insurance company. This will trigger the depreciation payment to be
released from the insurance company and usually will be sent by mail to the homeowner or
deposited directly into their account.

 

5) Give a check for the Actual Cash Value of the roof portion of the claim and your
deductible payment to your Mammoth Rep on the day we finish the roof. This
payment may happen before or after the insurance company has reviewed the supplement
and issued a revised copy of the estimate. Don’t worry, we will not collect the depreciation,
or the supplemental payment until you have received it from the insurance company. At
Mammoth, we never collect any money until we have completed our work, at which point
we collect the ACV (actual cash value) for the trade completed (roof) with the deductible.
One question we get often is, “why are you collecting the full deductible if some of the
money is to be used towards items you are not completing”. HB2102 is set up so that we,
in some cases must show the insurance company “receipt of payment for the deductible”
in the form of a copy of a deposited check from our bank in order to trigger the release of
the depreciation. In fact, some insurance companies have already started this practice.
When the depreciation check arrives to the homeowner, we only collect the portion
applicable to the work we have completed. In rare cases, our customers pay the ACV of the
roof amount and choose to pay the applicable portion of the deductible at the end once
they have received their depreciation check. The numbers will work out the same, we ask
that our customers follow the protocol of paying the deductible with the first check thereby
paying for as much of the roof as possible since at that point, we will have completed our
work, and followed through with our commitment, and would like to be paid for as much as
can be collected for the amount owed to us for our work.

 

6) Homeowner will pay the final check to Mammoth after receiving from the insurance
company. The homeowner will receive the supplemental check and the depreciation
check in the mail after the insurance company has received and processed our final
invoice. Sometimes they will issue one check for both the supplement and the
depreciation, sometimes there will be two checks. In most cases, the insurance company
will send a copy of the updated insurance paperwork with the final check. Remember, if
you have not already given an updated copy of the insurance paperwork to your Mammoth
Rep, be sure you give it to them so that they can be sure the Final Invoice is correct
(sometimes, they’ll release depreciation based on a contract, or even a phone call
confirming completion).