By: Chris Feniello, Roofing Contributor
After experiencing their first springtime hailstorm, Texas residents now understand the importance of having a solid roof over their heads. However, while the consequences of an unsteady roof might be abundantly clear, the roofing claims process is more mystifying to many. Between deductibles and depreciation, the confusion is almost enough to make some want to pack up and leave the state.
Co-founder of Texas Direct Roofing and Construction, Jerrimy Farris, is here to help homeowners decipher the insurance code. Farris explains that “Deductibles and depreciation are often misunderstood. While one comes out of your pocket, the other can go back into it. Having a contractor who understands both can make all the difference in navigating the roof claim process properly.”
A knowledgeable contractor can make all the difference when repairing or rebuilding a roof. Texas Direct Roofing and Construction aims to bridge that gap, giving homeowners the support and knowledge they need to navigate the claims process.
Defining Depreciation in Roofing Claims
Depreciation in home insurance terms is the recognition of how a structure (in this case, the roof of a home) will lose value over time due to regular wear and tear. An insurance company calculates a claim and the payout based on the depreciated value of a roof, rather than the original cost. So, while a brand-new roof might cost $20,000 the estimated depreciation might be around 40%, leaving the homeowner with a payout of around $12,000. Insurance companies may offer homeowners a policy based on that depreciated amount, the actual cash value (ACV), or the replacement cost value (RCV). Homeowners must evaluate and discern whether they have an ACV or RCV insurance policy while filing a claim.
Deciphering Deductibles on an Insurance Policy
Understanding the second “D,” for deductibles, is also crucial for filing an insurance claim. In Texas, a deductible represents a mandatory out-of-pocket amount that the homeowner is responsible for paying when filing an insurance claim. These amounts are a requirement to prevent fraudulent claims from being filed and help ensure that policyholders share the cost of repair work.
The deductible is a percentage or predetermined dollar amount that is agreed upon when the policy is first taken out. In a policy where a homeowner has a $2,000 deductible, the homeowner has agreed to cover that initial amount in the event of an insurable repair. If the roof repair has an estimated cost of $15,000, the homeowner would be responsible for $2,000 and the insurance company will provide the remaining $13,000 for the repair. Understanding these figures can help homeowners prevent financial strain from unexpected costs during a claim filing.
Keep in mind that a claim payout may appear to have been reduced when in reality the deductible has just already been subtracted from the total. Homeowners must connect with their contractors directly to avoid delays in payment or completion of the repair work.
Practices for Navigating Roof Claims in Texas
Help simplify the claims process by keeping the following in mind:
- Know Your Policy: Take the time to read and reread policy documents.
- Choose the Right Contractor: Work with a reputable contractor who is deeply familiar with the insurance claims process.
- Document Everything: Thoroughly document communications with the insurer and contractor, keeping receipts and photos of completed work.
- Maintain Communication: Follow up with the insurance provider to ensure clarity.
- Consider a Public Adjuster: If the process feels overwhelming, a licensed public adjuster can advocate for homeowners and help enhance their claims.
Owning a home is an investment, and that includes protecting it with insurance. But that does not mean a homeowner is alone in that journey. By taking the time to understand insurance policies and partnering with knowledgeable, caring professionals, Texans can protect themselves and keep a good roof over their heads.
Phone: 817-775-3540
Website: www.txdroofing.com
Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as financial or legal advice. Homeowners should consult with a financial advisor, insurance professional, or legal expert to fully understand the implications of their roofing claims, insurance policies, and related financial matters.
Published by Iris S.
