Will my Insurance Company pay for a new roof?

Posted by on Mar 6, 2013 in Expert Advice | 0 comments

A typical Texas Homeowner’s insurance policy will pay replacement costs for damages to your home sustained as a result of a weather related storm. Insurance policies do not cover the replacement of a roof that has deteriorated as a result of normal aging and/or wear and tear. This being said, many homeowners have roofs that have been damaged by a past hail storm and are unaware of it.

If you know for sure that you have hail damage on your roof you can call the claims office for your insurance carrier, or call your agent, and file a claim and request an inspection from an adjuster.

If you are not sure if your roof has hail damage, having a roofing contractor inspect your roof is the first best option.

A replacement cost homeowners policy does not mean that an insurance company will pay out the full cost of the repairs up front. If an adjuster determines that your roof needs to be replaced he/she will determine the replacement cost and usually hold back part of the funds until the work is completed. This recoverable amount is called depreciation or betterment depending on the particular insurance company. Your first payment will usually be for the replacement cost value (RCV) less the holdback (depreciation/betterment). This amount is called the actual cash value or ACV. From this amount the deductable will be taken out.

Insurance companies are motivated to replace hail damaged roofs to lessen their losses. If a damaged roof is allowed to leak then the insurance company’s liability is increased due to the risk of interior damage.

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