How does insurance work in this situation? [Roof replacement]
The situation:
- My roof was recently destroyed by weather.
- My insurance policy covers the total cost of roof replacement. (let's say up to $50,000)
- Insurance has already paid me the depreciated value of the roof (let's say $30,000), with the guarantee of paying whatever is remaining of the $50,000 total when the replacement work is completed.
- My roofer's quote for an equivalent replacement roof to the damaged one comes in under the depreciated value (let's say $25,000).
- My roofer's quote for a higher quality roof than the one being replaced is over insurance's total (let's say $60,000)
- I want the higher quality roof.
Question is, which of the following is how this works?
A) Will insurance pay the $50,000 for the higher quality roof, leaving me to pay $10,000 for the extra costs?
B) Will insurance only pay $25,000 for an equivalent roof, leaving me to pay $35,000 for the extra costs?