Even with the mass migration of new people to our great state, if you have lived here for more than a hot minute you've seen some weather. Texans new and old are coming to terms with our two distinct hail seasons that bring apocalyptic storms across Texas. Sadly though, hail storms seem to show up at any time and any place from the clear blue and just keep getting bigger and bigger in the amount of damage and insurance claims that they bring as we build homes in areas that are more prone to damage from hail.
As a result, Texas homeowners are seeing insurance premiums continue to move up by leaps and bounds rather than creeping as it has done in the past. Given the massive rise in insurance costs, homeowners now spend more time worrying about how their home insurance policy handles a hail damage claim more than any other type of coverage on their policy. Hail coverage has become the KEY coverage from San Antonio to Ft Worth, or anywhere else along the I-35 corridor. So let's break down how your insurance provides coverage for hail damage to your home.
Roof Replacement Cost Coverage
The very first thing to consider on a homeowners insurance policy in Texas is the type of claims settlement for your roof when you have that hail-damaged roof. Many insurance companies have moved to a tiered approach to how they pay out on a roof claim. The insurance companies have moved the payout for hail damage on homes to a "roof payment schedule" which is just a fancy way to say actual cash value. And while it may be fancy words, it definitely doesn't feel like a very Texan way to pay that claim for hail damage to your home. It's important to work with a trusted independent insurance agent who will shoot straight with you on this topic of hail damage coverage.
Oh and if the roof is more than 15 years old, you likely won't have a choice in the matter. The insurance providers are all putting provisions into the standard home insurance policies that the claim process moves to roof payment schedule as that roof moves beyond 15 years. Full replacement cost on roof damage provided by hail coverage is almost non-existent. Which is only slightly better than a hail exclusion.
All of these downgraded provisions involved in how homeowners policies respond to hail damage have to do with both the amount of hail that we receive in this state and how shingles age in the extreme Texas weather. In North Texas particularly, roofs don't age like what is printed on the packaging of shingles. The severe weather extremes can make a 30 year roof toast in 15 to 20 years. As insurance companies have realized this, they have moved to actual cash value coverage for hail roof damage. Don't be caught surprised by this if your roof is older. A standard homeowners policy should clearly state on the policy declarations page how your roof damage claims are settled. Don't get tricked!
Hail & Windstorm Deductibles
The next thing to consider are homeowners insurance deductibles. On most standard homeowners insurance policies wind and hail have their own separate deductible. In Texas, the vast majority of home insurance companies have moved to a wind and hail deductible that is at least 2% of the dwelling coverage portion of your home policy limit. That means if your dwelling value is $250,000 on your standard policy, your deductible for damage caused by hail will be $5,000. This change has swept across the state over the last 18 months as homeowners insurance company losses have accumulated from the large scale severe storms have racked up increasing claim costs. Some companies have a mandatory minimum of 3% or more! That drastically changes how much money comes out of your pocket before your hail claim pays out to you for roofing materials. Know your number on this one!
What Else Do Texans Need To Know About Their Homeowners Coverage?
Thinking about what else you should consider is a little more nuanced. Some basic homeowners insurance policies are known and named peril policies. These basic home insurance policies will not cover for damage resulting in water coming in your home as a result of hail damage. It's known as wind-driven rain coverage and is incredibly important to understand. As your insurance rates increase, Texans are looking for ways to save money. You need to look carefully at whether or not you can afford a 3% deductible or a roof payment schedule for your claims process. In most cases, the larger deductible will be a smaller hit to your claims payout unless your roof is brand new. These differences are why it is important to work with an independent insurance agent who works for you and not some big insurance company.
True Texas Home Insurance
If you aren't sure which end is up with your homeowner insurance policy, True Texas Home Insurance will provide guarantees that make comparing policies easier. The agents at Insurance For Texans have the scoop on how to protect your home and have home insurance cover hail damage! You can only find True Texas Home Insurance in one place to ensure that you have insurance coverage that will provide for your hail claims. Click that button below to get started on the process of obtaining TRUE Texas Home Insurance today.