When a storm hits and damages your home, dealing with an insurance claim can feel overwhelming. After filing a claim and being approved for repairs many homeowners expect to receive a check that covers the entire cost of repairs — only to be surprised (and sometimes panicked) when that check is smaller than expected.
But here’s the good news: That smaller check doesn’t mean you’re getting shortchanged. In fact, it’s completely normal — and part of how the process is supposed to work.
Understanding How Insurance Claim Checks Work
Insurance companies typically pay out your claim in stages, not all at once. Here’s a quick breakdown:
1. The First Check – The ACV (Actual Cash Value)
This is the amount your insurance believes your damaged property is worth today — factoring in depreciation. It’s not the full cost to replace or repair, just what it’s worth in its used condition. This is what most people see first, and it’s often lower than expected.
2. The Second Check – The Depreciation
With Replacement Cost Value coverage, once repairs are underway or completed, the insurance company will release the withheld depreciation. This brings the total payout up to the replacement cost value — the full cost of repairs or replacement.
3. The Third Check – Supplemental Payments (if needed)
Sometimes, additional is discovered through the process of making repairs. If your contractor finds additional issues during the project, they can submit documentation to the insurance company. If approved, another check may be issued to cover those needed repairs.
Don’t Panic — Just Plan
The most important thing to remember: don’t panic if that first check seems lower than expected. It’s just the beginning of the process. As long as you’re working with a reputable contractor who understands insurance work, you’ll be guided through each step to ensure you’re made whole.
How H&F Exteriors Can Help
We work with homeowners every day who are navigating insurance claims. Our team knows how to communicate with insurance companies, handle supplements, and make sure you get the full value of your coverage.
If you aren’t sure if you should file an insurance claim, contact us today for a complimentary property inspection, where we will explain the entire process in full. If you’ve already received a check and you’re not sure what to do next, let’s talk. We’ll walk you through your next steps and help you get your home back in shape — without the stress.