Hail storms are fairly common in Colorado. Most of the time, they deposit their load of hail, perhaps they cause some dings and dents in an unprotected automobile, and then they’re on their way. But in some instances, the damage they leave in their wake can be more serious.
Hail storms and extreme winds are two very common causes of damage to a roof. They can cause damage that is not just cosmetic in nature, but also damage that can lead to leaks. If you have a homeowner’s insurance policy, how much of the cost of the replacement of your roof will they pay?
Well, that depends on what kind of policy you have, whether it is a full replacement or an actual cash value policy.
FULL REPLACEMENT POLICY
A full replacement policy is a policy that will cover the entire cost of the damage to the roof, less your deductible. What this means is that they will cover the cost of replacing the roof, and you will only pay whatever your deductible is. Now, some of these policies will also attempt to not cover things that would usually be included in the cost of replacing a roof, so you must be aware of precisely what the policy says and what your adjuster says. Still, having the entire cost of your new roof (minus your deductible, of course) paid for is a much better way to replace the roof than having to pay for it yourself out of pocket.
ACTUAL CASH VALUE POLICY
‘Actual cash value’ refers to the value of your roof when the loss occurred. This means that they depreciate the roof, much the way your car depreciates. An average roof is expected to last for fifteen to twenty years. With an ‘actual cash value’ policy, they will take the depreciation of your roof, and deduct it from the cost of a new roof. If your roof needs replacing due to damage, and that roof is eighteen years old, you won’t be getting nearly as much as you would if you had just put on a new roof last season and it had been damaged via a freak hail storm.
WHAT’S THE LIMIT OF HOW MUCH THEY’LL COVER THE ROOF FOR?
In theory, they’ll cover the cost of replacing your roof up to the policy limit. If you have a half-million dollar home, and you get a half-million dollar homeowner’s policy, they’ll pay up to that half-million dollars to fix the home, in theory, less your deductible. Some policies will have limitations on how much it will pay in various instances, but the policy is, in theory, good for up to the total value of the coverage.
IS THERE ANYTHING I SHOULD WATCH OUT FOR?
Some insurance companies will rewrite your policy without making it clear that they did so. For example, as your roof ages, some insurance companies will try to convert your policy to an ‘actual cash value’ policy, in order to protect themselves. Just make sure that you keep an eye on your policy and what coverage you have, and you should never be taken by surprise.
If you’re filing a hail claim, you’re already having a bad day. Now, at least, you can equip yourself with knowledge about what you are likely to get to defray the cost of your new roof.
Has recent hail damage affected your home? Learn more about the hail damage claims process.
