Some Things Homeowners Need to Know Before Filing a Roofing Insurance Claim

As an experienced specialist and a co-founder of LocalProBook , I want to share some important insights about the roof insurance claim process that homeowners should understand before contacting their insurance agent.

Here are seven essential things every homeowner should know about their insurance policy before filing a roof insurance claim and the resources available to learn this information.

Whether you’re wondering about the kind of roof damage covered by your insurance, if your policy covers roof leaks, or how often insurance will pay for a new roof, there are a few questions you should answer about your homeowner's insurance before filing a claim.

1. Do You Have Replacement Cost Value (RCV) or Actual Cash Value (ACV) Coverage?

Understanding whether you have RCV or ACV coverage is crucial when purchasing a homeowners insurance policy or considering a roof insurance claim.

• RCV Coverage: This will cover the entire cost of a roof replacement, minus your deductible. For instance, if a hailstorm causes $15,000 in damage, and you have a $1,000 deductible, your insurance company will cover the remaining $14,000 after approving the quote.
• ACV Coverage: This only pays out the value of your current roof. If your roof is 10 years old and has depreciated by $10,000, the insurance will cover $5,000, minus your deductible, meaning you would need to cover the remaining $11,000.

As a roofing expert, I recommend knowing this information beforehand to avoid potential coverage gaps that could lead to significant out-of-pocket expenses.

2. What Is Your Deductible?

When filing any roofing-related claim, the deductible is the amount you must pay before your insurance covers the remaining cost. This deductible might be a set amount or a percentage of the claim.

For example, if you have an RCV policy with a $1,000 deductible and need a $10,000 roof replacement due to storm damage, you would pay $1,000, and your insurance would cover $9,000. Ensure your deductible is affordable, as you’ll need to pay it out of pocket in case of a claim.

3. What Is Your Insurance Policy Limit?

Insurance policies have maximum amounts they will pay out for different types of claims. When purchasing homeowners insurance, choose limits that provide sufficient coverage for significant losses without resulting in unnecessarily high premiums.

4. What Applicable Exclusions Do You Have?

Insurance policies come with exclusions to keep premiums reasonable. Common exclusions include damage from wear and tear, lack of maintenance, intentional damage, and catastrophic events like war or natural disasters. Review your policy’s fine print to understand what is and isn’t covered, especially for older roofs.

5. How Does Your Policy’s Loss of Settlement Provision Work?

ACV policies generally cover less than RCV policies due to depreciation. For instance, if your 20-year-old roof has depreciated significantly, an ACV policy will cover much less for its replacement, even if the damage is due to a natural event.

6. What Is the Statute of Limitations on Your Claim?

The statute of limitations is the period during which you can file a claim for damages. This period varies by state or province and can range from one to six years. Ensure you file your claim within this period to avoid losing coverage.

7. Do You Have Ordinance and Law Coverage?

Ordinance and law coverage ensures your policy covers the cost to rebuild or renovate your home to meet current building codes in the event of a major loss. This type of coverage is crucial for roof repairs or replacements that must comply with updated codes.

Many homeowners are unaware of this coverage, so consult with an insurance specialist to determine if you need it in your policy.

I advise thoroughly understanding these aspects of your insurance policy to ensure you’re well-prepared when filing a roof insurance claim.

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