Homeowners Insurance - Roof Coverage

How the impact of weather events is changing the way insurance companies pay for roof damage claims due to wind and hail.

By: Cheryl Slater

The insurance market in the Midwest historically is very stable, however, we are currently in the midst a market in turmoil.  In recent years, the impact of weather events has changed the way insurance companies are paying for roof damage claims due to wind and hail. In the past, the insurance company would evaluate the damage to the roof and issue a check for the full replacement cost, minus your policy deductible. The age of the roof wasn’t usually taken into consideration. However, due to the increased frequency and severity of weather events across the State along with escalating costs for materials and labor insurance companies have begun introducing new ways to settle these roof damage claims. You need to be aware and understand how these changes affect your insurance program.

Many companies are now requiring a separate Wind/Hail deductible, which is higher than your “policy” deductible. This can be a flat amount, such as $2,500 or $5,000, or it could be a percentage deductible, meaning a percentage of your dwelling limit.  For example, if you have a $300,000 dwelling limit with a 1% Wind/Hail deductible, you will have a $3,000 deductible for any covered wind or hail damage claim to your roof.

Everyone if familiar with cars depreciating with age.  Insurance companies do not pay replacement coverage on a car that is ten years old.  The same is true of a roof.  Roofs have a limited useful life after which the homeowner will need to replace it. Insurance companies are changing they way they pay for damage to a roof. Many companies no longer to pay for your roof but instead will now settle roof damage claims on an Actual Cash Value. This means the insurance company will prorate (or depreciate) the loss based on the age of your roof, with older roofs, getting a larger depreciation amount applied to materials and labor. With some companies, however, you may be able to “buy back” replacement cost coverage for a period of time.

While you can’t prevent storms, there are proactive steps you can take to protect your home and reduce, or possibly prevent, the chance of a loss. Here are a few things you can do right now:

• Be sure to tell us anytime you replace your roof so we have up to date records on file.
• If your roof is more than five years old, have it inspected by a trusted, local roofer. Have them check for loose, broken or worn shingles, loose nails, cracked sealant, flashing, and moss growth, and make any needed repairs now.  
• Be sure that the gutters and downspouts are secure and have been cleared of debris.
• Trim overhanging limbs, prune trees around the property as needed, and inspect trees for damage after a major storm.

If you’re unsure how your policy would apply to wind or hail damage to your roof, please contact us. And be sure to let us know if you have recently replaced your roof. There are discounts available for newer roofs!  A copy of the paid invoice from the roofing contractor is all that is needed to update your policy.

Stormy weather can come out of nowhere but taking care of any issues with your roof now and completing regular, routine maintenance on your property will help minimize damage.