Roof Replacement Deductible

Homeowners to pay full roof replacement deductible under new law house bill 2102 goes into effect sept.

Roof replacement deductible.

Today most homeowners have replacement cost value rcv provisions in their insurance policies. It could be as low as 15 for a roof near the end of its service life. There is no deduction for depreciation under the rcv valuation method. Let s say it will cost 20 000 to replace your 10 year old roof after hail damage and your home policy has a 3 000 deductible.

For most homeowners the basis for your home is the price you paid for the home for or the cost to build your home. Once your deductible is met in most cases the insurance company pays the rest. This means you will get a percentage of the replacement cost based on the roof s material and age. The adjuster has calculated the number of squares to replace your roof.

Installing a new roof is considered a home improve and home improvement costs are not deductible. Become a patron by contributing to. If your policy is for rcv your insurance company will pay the replacement cost value of your roof at the time of a covered loss. Repair coverage usually takes into consideration depreciation of the roof.

This means the replacement cost value minus your deductible. To get the job texas roofers often offer homeowners a free roof by agreeing to pay the homeowner s insurance deductible. If you use a roofer that agrees to pay your deductible 1 its fraud 2 the 1000 will not come out of his pocket. Instead of doling out lump sums insurers will now break down payments into separate checks.

If your roof is newer and in good shape you may be able to buy roof replacement cost coverage. A replacement cost policy will pay to replace your roof based on current construction costs. Now is the chance to help your local community succeed. For example if a new roof costs 8 000 and your deductible is 1 000 your insurer will pay for 7 000 of the roof replacement.

Here s an example to help explain the difference. This will pay you the full amount to get a new roof. Unfortunately you cannot deduct the cost of a new roof. Today if a roof needs 6 000 in repairs from a severe storm an insurance adjuster will subtract the 1 000 deductible from the estimated cost of repairs.

A new law if approved by gov. An actual cash value policy will decrease your payment based on the age or wear on your roof. The roofer will cut corners and replace your roof with cheap material and not enough material causing you a world of problems in the long run. Read your policy carefully.