Some people think roof replacement financing is only necessary when it’s time to replace an old roof without storm damage. But did you know that insurance companies are changing how much they cover hail and wind damage? Sometimes the cost of a roof replacement isn’t covered completely by insurance. Plus hail and wind related deductibles are getting more expensive. Here are a few ways your insurance company can leave you high and dry.
The Fine Print of Homeowner’s Insurance Coverage:
Actual Cash Value Coverage
Does your policy only offer “actual cash value coverage”, or full replacement cost? The difference is simple. If your roof is over a certain age, most companies will only insure it for actual cash value coverage. This means they pay for the estimated value of the roof at its current age, not what it costs to replace it with a new one. ACV coverage is usually offered on older roofs, but sometimes homeowners choose this option to lower their monthly payments. Depending on ACV and cost of replacement, you may need roof replacement financing to pay the out of pocket difference.
Full Replacement Coverage
Full replacement coverage is more expensive but will usually cover the cost of a new roof. Some insurance companies will still try to deny your claim based off owner negligence (lack of documented maintenance), or if you wait too long to file. Often times they will claim your roof needs to just be repaired, and not replaced. This can cause more serious problems to occur down the road. Its hard to tell if roof has been damaged in a storm until it starts leaking months later. Roof replacement financing from RJ Construction can help cover these gaps in coverage, or insurance denials.
Type of Roofing Material
What is your roof made of? The type of roof your home has can also change how it is covered by insurance. Insurance carriers might cover 80% of a 20-year-old slate roof, but only 50% of a tile roof the same age. Read the fine print of your homeowners’ policy to make sure what is covered after a severe storm.
Roof Replacement Financing Can Cover the Cost of Rising Deductibles:
Insurance companies are changing fixed deductibles to percentage deductibles – specifically for hail damage. So, you may be required to pay 1-2% of the total insured value of your home in order to get your roof replaced. If your home is insured for $400,000, that means a 1% deductible is $4000 out of pocket for a new roof. Depending on how much your home is insured for, the deductible can feel overwhelming after a storm. Roof replacement financing is a good way to cover the gap, and let you pay the difference without destroying your savings account.
Getting Your Roof Replaced Shouldn’t be This Stressful!
The experts at RJ Construction are here to help with your roof replacement financing needs, so you’re not breaking the bank shingle by shingle. With over 10 years of roofing experience and great financing options, your home will be back to new in no time.