How Important Is It to Have the Correct Insurance Coverage on My Roof?
Having the correct insurance coverage on your roof is more important today than it was just a few years ago. The insurance industry is changing, and many homeowners don’t realize their policy has changed until they’re faced with a major hail claim. Knowing what your policy covers before a storm can save you thousands of dollars and prevent an expensive surprise.
Why Is Roof Insurance Becoming More Important?
Here in Colorado, it’s getting harder and harder to find good, affordable insurance coverage for your roof. We experience extreme weather events like hail storms and tornadoes, and many insurance carriers have changed how roof claims are covered.
Educating homeowners about these changes is a big part of why we do what we do. We don’t want to see homeowners discover they’re underinsured only after their roof has been damaged.
What Do Most Homeowners Get Wrong About Their Insurance Coverage?
One of the biggest mistakes we see homeowners make is not reading the updates on their insurance declaration page.
Your declaration page summarizes your coverage, including your deductible. Many insurance companies are changing policies from a traditional fixed deductible to a 1% or 2% percentage deductible. Because these updates often arrive in routine mail or renewal paperwork, many homeowners never realize the change has been made.
A percentage deductible also increases as the value of your home increases. What seemed like a small change on paper can become a very expensive surprise after a hailstorm.
Definition: A deductible is the amount you pay out of your own pocket before your insurance coverage begins paying for a covered claim.
What Can Happen If You Don’t Know Your Deductible?
We recently worked with homeowners whose roof had been damaged in a hailstorm. They had no idea their policy included a percentage deductible.
When they learned their deductible on a $25,000 roof claim was nearly $18,000, they literally went into shock. They suddenly faced an unexpected expense they hadn’t planned for because they believed this was exactly what their insurance was supposed to cover.
As homeowners first and contractors second, situations like this are devastating for us to see. Most people simply don’t know the insurance industry has changed, and they aren’t noticing the policy updates arriving in the mail.
How Can You Protect Yourself?
There are a few simple steps every homeowner should take.
- Read your insurance declaration page every time your policy renews. Make sure you know whether your deductible is a fixed dollar amount or a percentage of your home’s value.
- Have your roof inspected if it’s older or after a major hailstorm. Understanding the condition of your roof helps you make informed decisions before problems become emergencies.
- Ask about a Class 4 impact-resistant roof. A Class 4 roof is designed to better withstand hail impacts than standard shingles. Many insurance companies offer discounts for homes with this type of roof.
We’ve seen homeowners receive insurance discounts of around 30% by combining the benefits of a newer roof with a Class 4 impact-resistant roof. In many cases, those savings can help pay for the new roof over the next three to five years.
Why We Believe Education Matters
We’re homeowners first and contractors second.
That means we’d rather help you understand your insurance coverage today than see you face an unexpected financial burden after the next hailstorm. We believe homeowners deserve clear information so they can make informed decisions about protecting one of their biggest investments.
Frequently Asked Questions
Do I really need to read my insurance declaration page every year?
Yes. Your declaration page tells you how your policy is structured, including your deductible. Insurance companies can make changes at renewal, so reviewing this document each year helps you avoid unexpected surprises later.
What is the difference between a fixed deductible and a percentage deductible?
A fixed deductible is a set dollar amount, such as $1,000 or $2,500. A percentage deductible is based on your home’s insured value, so the amount you pay increases as your home’s value increases.
Can a new roof actually lower my insurance costs?
Often, yes. Many insurance companies offer discounts for newer roofs and additional savings for Class 4 impact-resistant roofing systems. Every carrier is different, but it’s worth asking what discounts may be available before you renew your policy.
Next Steps
If you’re not sure what your insurance deductible is or you haven’t looked at your declaration page recently, now is a good time. We’d be happy to inspect your roof, answer your questions, and help you understand how your roof and your insurance coverage work together so you can make informed decisions before the next Colorado hailstorm.
