Making sense of homeowner insurance policies can be challenging for even the most proactive policyholder. Small changes that take place within the insurance industry can have profound effects on the way that your policies function. For instance, a recent article from Fox Business pointed out how a homeowner’s roof insurance policy could fail to cover the cost of necessary roof replacement after a major storm. Since Peak Roofing & Construction frequently works with homeowner’s whose roofs have been damaged by storms and high wind, we thought our customers ought to know about this important subject.
Replacement Value Versus Cash Value
If the terms of your policy state that your insurance company offers you the ACV – actual cash value – of your roof, then you might not have the coverage you think you do. When an insurer pays the policyholder the actual cash value of their roof, the amount that reaches the policyholder has the deductible and depreciation already taken out. This may not leave the policyholder with enough money for necessary roof replacement and repairs from the homeowner’s preferred Frisco roofers.
If your insurance policy states that you will receive the replacement value for a damaged roof, then you can count on your insurer to pay the entire cost associated with the necessary repairs. The replacement value does not factor in depreciation, and work will begin on your roof as soon as you have met your required deductible.
Be Proactive With Roof Repairs
To avoid being surprised by the need for sudden roof replacement, arrange for a Peak Roofing & Construction team member to inspect your roof on a regular basis or if you suspect it has been damaged. You can contact us at (972) 335-7325.
Source: Fox Business News, “Roof Insurance Hits a New Ceiling,” Jay MacDonald, January 29, 2014