When a storm damages your roof, you might expect your home insurance to cover the entire cost of a replacement. However, many homeowners are shocked when they learn that their insurance company will only cover a portion of their new roof expense. Understanding how the insurance company calculates their portion of the cost can help you avoid surprises when it comes time to file a claim. Here are some common reasons why your home insurance may not fully cover the cost of a new roof after a storm.
- Depreciation: Home insurance policies typically offer reimbursement based on the actual cash value (ACV) of the damage. ACV takes into account the depreciation of your roof, meaning the insurance company subtracts the amount your roof has decreased in value over time. If your roof has a lifespan of 20 years and it’s been 15 years since it was installed, the insurance company may only cover a fraction of the replacement cost. This means that, despite the damage, you could still be left with a significant out-of-pocket expense to cover the difference.
- Policy Deductible: Like most types of insurance, home insurance policies come with a deductible, which is the amount you must pay out-of-pocket before your insurance coverage kicks in. If your roof is damaged in a storm, your insurer will subtract the deductible from the amount they pay out.Some policies have specific deductibles for storm-related damage, such as hurricane or tornado deductibles, which may be higher than standard deductibles. It’s important to be aware of your deductible and how it affects your potential payout.
- Policy Limits: Every home insurance policy has a coverage limit, which is the maximum amount the insurer will pay for a claim. If your roof damage exceeds the coverage limit specified in your policy, you must pay the difference. It’s also possible that certain types of damage (such as cosmetic damage) may not be covered, depending on the policy’s exclusions. For example, if only a small section is damaged but the rest is in relatively good condition, the insurer may only cover repairs for that small section rather than the full replacement cost.
- Roof’s Condition and Age: If your roof is in poor condition or is old, the insurance company may argue that it was already susceptible to damage and, therefore, the storm did not cause the full extent of the damage. In these cases, your insurer may refuse to cover the cost of a new roof, or they might only cover partial repairs instead of a full replacement. Additionally, some insurers may exclude older roofs. Some policies have specific requirements that the roof must be in good condition to qualify for full reimbursement.
- Failure to Maintain the Roof: If it’s found that the damage to your roof was due to lack of maintenance, your insurance company might reduce or deny the claim altogether. Insurance is designed to cover unexpected damage, not damage caused by neglect. If there were existing leaks or missing shingles before the storm, the insurance company may argue that the storm merely exacerbated pre-existing problems. It’s important to maintain your roof regularly, as neglect could lead to the denial of your claim.
- Roofing Material Limitations: Some insurance policies have limitations on the types of roofing materials they will cover. If your roof is made from materials not considered “standard” (such as wood shakes or certain high-end roofing materials), the insurer might only cover the cost of replacing the roof with less expensive materials, leaving you to pay the difference for more premium options.
While home insurance can help cover the cost of roof repairs or replacement following a storm, various factors may limit the amount of coverage you receive. Understanding the terms of your policy will ensure that you are fully prepared for any roof damage that may occur.
Questions? Call Anderson & Associates Insurance today. We have decades of experience in Manatee County and are well-poised to help Florida homeowners facing down another hurricane season.
