Your Guide to Surviving Hail Season
March is here, and that means it’s time to prepare for hail season. Hail storms are never fun and almost always cause damage to your property. While there isn’t much you can do in the way of protecting your home from hail there are ways you can ensure you are protected afterward.
The Nitty Gritty
While most home insurance companies do cover hail damage, you could be responsible for not only your deductible but the depreciated value of your roof as well. How much you actually pay out of pocket is determined by the type of policy you accepted.
Is your policy actual cash value or replacement cost?
Replacement Cost vs Actual Cash Value, what it Means to Your Hail Claim.
Actual Cash Value or ACV is the cost to replace damaged property with new property of like kind and quality, less depreciation. So, what is depreciation? The textbook definition of depreciation is the loss of value from all conditions such as age, wear and tear, and deterioration.
Replacement Cost Value or RCV is defined as the cost to replace the damaged property with the materials of like kind and quality without subtracting depreciation. Replacement cost is defined as to repair or replace the item in today’s market conditions while making the insured whole again.
Roof is totaled, cost to replace is $20,000. Your deductible is $2,000.
Actual Cash Value: Insurance Pays: $20,000 (roof)- $5,000 (depreciation)- $2,000 (deductible)= $13,000 (Actual Cash Value)
You Pay: $2,000 (deductible) + $5,000 (depreciation) = $7,000 (Out of Pocket)
Replacement Cost: Insurance Pays: $20,000 (roof) – $2,000 (deductible)= $18,000 (Replacement Cost)
You Pay: $2,000 (deductible Out of Pocket)
Ready to File Your Claim? Here's What You Should Know.
First thing is first, if you think you have any damage to your home your policy does require you to make all attempts to prevent further destruction such as tarping any holes in the roof or boarding up broken windows. Once you have done that, it’s time to contact a roofer to come and survey the damage.
Here are some tips to guide you in the decision-making and give you the confidence that you are making the right choice:
- Ask for proof of current insurance.
- Ask about prior projects, the number of years in business and if they offer warranties on their work.
- Look for customer reviews on their websites and other places.
- Be suspicious of anyone who asks for money upfront.
- Do not sign a contract without feeling confident about all the details such as timeframes, the scope of the job, etc.
- Get at least three estimates from other roofing contractors to ensure you are getting an accurate estimate.
- Be leery of storm chasers. These are the ones who show up in neighborhoods after a storm without being called.
Bottom line let us help you potentially save thousands by verifying the type of policy you have and how much your deductible and out of pocket expenses are going to cost you.
Don’t Let a Little Chance
of Storms Ruin Your Fun
While spring means stormier weather it also means time to for warmer weather fun. However, it’s essential before you take the bike out of the garage for those sunny day cruises, hit the lake or take the RV on a road trip you are adequately protected. Let us help you protect your toys with the right motorcycle, RV or boat policy.