A deductible is a specific amount of money that a homeowner must pay towards the cost of an insurance claim. If the circumstances surrounding the claim include a roof replacement, a different set of deductibles may apply. The roofing contractors in 4U Roofing shares important things you need to know about roof replacement deductibles.
Insurers write two kinds of policies for homeowners and small businesses: all-risk (or open peril) and named peril policy. An all-risk policy covers all circumstances, with some exclusions as stated in the policy. This type of policy generally has higher premiums because anything that’s not named in the exclusions—which counts war, earthquakes and government seizure, among others—is automatically covered.
A named-peril insurance policy, on the other hand, only covers what is specifically noted in the policy; everything else is an exclusion. It generally has lower premiums and often has damage-specific deductibles clearly stated in the policy. Deductibles vary depending on the circumstance. For example, earthquake insurance will differ from roof repair or replacement. Whatever policy you may have, review it and make sure it covers roof replacement.
A roofing contractor may offer discounts to offset your deductibles, or pay for them outright. Avoid contractors who do this. In fact, this is illegal in some states. Information about your deductibles should be kept strictly between you and your insurance provider.
Deductibles Do Not Apply to Extras and Upgrades
An insurance provider will typically pay for a “same or similar” roofing type. For example, if your damaged roof had traditional three-tab shingles on it, you will have to shoulder the difference if you decide to upgrade to laminate shingles.
There are certain conditions that may make your roof replacement eligible as a tax deductible. Some conditions are time-sensitive, so, in addition to your insurance provider, you should also consult your tax adviser during the claims process.