Your Roof Deductible May Have Changed, and Your Insurance Company May Have a Sneaky Wind/Hail Deductible Secret
Insurance companies are slowly moving to a new roof deductible model that could have expensive impacts for Colorado Homeowners. Many insurance companies have been quietly adopting new wind and hail deductible policies from a flat fee to a percentage of the total value of the house.
The issue for homeowners is that the cost is tied to the insured value of the ENTIRE home, instead of the cost of replacing the roof. As an example, if you home is insured for $1,000,000 then your 1-2% wind or hail deductible could end up being $10,000-$20,000 instead of $1,000-$2,500.
This is an especially controversial issue for homeowners with small homes that are valued highly. For half-duplex with a small footprint and relatively small roof the cost for a new roof may be $21,500. If the value of that home is $1,000,000 because it in a desirable location then the deductible could be as high as $20,000 (2% of total value), which would mean the homeowner would be on the hook for almost the entire cost of the roof.
Colorado has extremely high rates of hail damage on the Front Range, so it is more important than ever to make sure you have the right wind and hail damage on your home. If you do not know what your wind/hail deductible is, here is how to find out more:
Check your policy. Look for a line item called “wind/hail deductible” or “named peril deductible”. See if this is a percentage of your home’s value.
Call your Insurance agent to ask if your hail deductible is a flat deductible or a percentage.
Document your roof condition. Many roof companies can provide a free roof evaluation which would help you understand the current condition of your roof to prevent headaches later when your roof is inevitably affected by hail.
Understanding your current insurance is the first step in ensuring you are properly insured.