With all of the insurance companies being in the news for the wicked increases in home insurance rates over the last two years, more and more Texans are beginning to wonder what exactly they are paying for now. When we spoke with Elizabeth this last fall, she was not only frustrated but bewildered. She had filed a roof claim with her insurance provider due to a hail storm that had blown through Austin that was ultimately approved. Unfortunately for Elizabeth, the promise of a full roof replacement from her roofing contractor did not come to pass even though her claim was approved. Our agents have spoken with countless Texans who have been hit with this same problem of roof insurance claims gone wrong. If the insurance adjuster approves the claim, how can the insurance company not payout for an entire roof replacement?
Over the last few years, as claims for roof damage have soared, the insurance companies have begun to make tweaks to their homeowners insurance policy language. The result for folks like Elizabeth, and potentially yourself, is that those hail storms in spring and fall are wreaking havoc on Texas homeowners and the roof repair costs are being passed on to them rather than the homeowners insurance companies. Knowing what your insurance carrier will cover as stated in your home insurance policy will help you not to have to ask, "Why won't my home insurance coverage replace my roof?" Let's look at a couple of different ways that the insurance companies are trying to stick it to Texas homeowners.
Do You Have Full Replacement Coverage?
As premiums have soared, disgruntled Austin homeowners have reached out to insurance agents looking for price relief. In years gone by, simply changing insurance carriers could help you find that price relief as it seemed at least one company could find a way to get the price down at least some. Much of that has disappeared and crafty insurance agents are trying to find new ways to get pricing down to make sales. The insurance carriers have come up with a scheme to help those agents entice you to select a standard home insurance policy with them. Sounds great when that big name company is offering you a much better annual rate, right? That's exactly what Elizabeth thought as well!
The problem comes in unexplained policy terms that can leave Texas homeowners exposed when it comes time for a roof insurance claim. What once was a rather straightforward process (your roof is damaged, the roof inspection verifies it, and the insurance carrier covers the full cost of replacing your roof minus your deductible) isn't always the case. Roof coverage has become variable in how it works.
Most Texas homeowners policies now have a term called Roof Payment Schedule. That's a fancy marketing term that the companies are using to sneak in something that is bad for you called a Depreciation Schedule. This means that you will have your roof claims settled at actual cash value rather than replacement cost. Elizabeth would not have ever bought a policy with actual cash value on insurance claims for roof damage. She knew like you, that actual cash value is a bum steer. How were the insurance companies allowed to sneak that in there?
We can thank "creative" dealings between roofing contractors and consumers for leading insurance carriers to tighten down the standards on paying claims and increasing deductible amounts. Roofing companies offering to help customers "eat the deductible" has proven more costly and wound up hurting more than helping in the form of higher premiums. It's also illegal.
The bottom line is that Roof Payment Schedules are not good for you. You want to see in writing that a policy that you purchase is replacement cost coverage on roof claims. TRUE Texas Home Insurance comes with that promise. But there is one more elephant in this room. And this elephant is so big it makes time not be on your side.
You need to ask that insurance agent if the roof replacement cost coverage can be taken away as your roof ages. Some companies have put provisions into their standard homeowners insurance policies that stipulate that roof payment schedules go into effect when your roof reaches 10, 15, or 20 years of age. If your policy has a 10 years of age provision, you need to be socking away money that will be needed when you get the depreciated cash value coverage check in the mail. Most agents don't want to talk about this. They only want to talk about the price being cheaper.
Matching Of Siding & Roofing Materials
Now that Elizabeth had a handle on depreciation schedules, she asked us the question that we hope all Texas homeowners ask us. She wanted to know if there were any other "gotchas" that she needed to be aware of with covered events. The other big place that we see Austin homeowners disappointed in the claims process has to do with an endorsement known as Matching of Siding & Roofing Materials. This optional coverage eliminates a common coverage restriction found in Texas home policies. This can result in the drastic reduction of claim benefits or even a homeowners insurance claim denial.
This coverage restriction is found in either the exclusions or conditions of the standard homeowners insurance policy. It states that if only part of your roof is damaged, the repairs do not have to be done with material that matches your current roof covering. That means if you need a section of damaged shingles replaced that are no longer made, the insurance company doesn't care if they actually match. So long as the type asphalt shingle being used for the minor repair is of similar quality, it can look like whatever it may look like. This is a frequent occurrence with wind damage. While you personally may not care about this, most Texans don't want two colors of architectural shingles on their roof. It doesn't do wonders for the resale value.
Conversely, if you have the optional endorsement that we've mentioned, you will get a full roof replacement if your damaged shingles can't be matched exactly. This provision doesn't increase a home insurance premium in a substantial way, but can completely change your insurance claims process in a positive way. The last thing that you need is to be frustrated and have a zero pay claim on your claims history report. Making sure that you have this endorsement is part of TRUE Texas Home Insurance.
Bad Roofs
The first problem we mentioned with roof payment schedules is going to be in play with bad roofs that may have roof leaks in multiple places. The matching issue is typically for smaller storm damage, rather than the big hail damage. But it is important for you to understand how your current policy will respond in these various roof damage claims. If you don't understand the difference between replacement cost and actual cash value we recommend working with an experienced independent insurance agent who can explain how your homeowners insurance cover roof replacement in a simple fashion. You never want to wonder "Will my insurance coverage replace my roof?" after you have filed a roof damage insurance claim waiting on the call from the insurance adjuster.
With insurance rates soaring to the sun, it becomes more important to make the same decision that Elizabeth did when she called Insurance For Texans. As a local, independent insurance agent living and working right here in Texas, we know this hail that will come knocking soon. And that means that you want to make sure that you are actually covered for wind and hail damage. TRUE Texas Home Insurance is here to help you get the quality of coverage that you deserve.
Call us at 469.789.0220 or click the button below to start a conversation about how to get TRUE Texas Home Insurance.
