It doesn’t matter if you have a shingled roof or steel roofing, there’s going to come a time in your life as a homeowner where you may need to make an insurance claim against your roof. That’s why it is important you fully understand what is and is not covered under your policy.
No policy is the same
It’s important to discuss your policy with your agent because what you have and your neighbor have for coverage are likely not the same. No policy is ever cut and dry. Be sure to have clauses added in your policy for added protection you may need such as flood coverage or tornado coverage depending on where you live.
Common policy language
As you review your policy there will be language used that you may not understand. Here are common policy language terms you may see:
Deductible –
The deductible is what you pay in the event that something happens to your home. For example, if your deductible is $1,000 then you’ll pay $1,000 towards your claim total and your insurance company will cover the rest. Typically, higher deductibles save you on your monthly payment but will also cost you more upfront when a claim is needed.
Replacement Cost Value –
This is the total amount that of the repair that is broken down between what you will pay and your insurance will pay.
Depreciation –
Your insurance depreciation is what is left over after the deductible is paid and the insurance agent has received the funds for your project. Normally, the money will go to the agent and they’ll give you a chunk of it upfront and then keep the remaining amount until you actually get started.
Actual Cash Value –
The actual amount owed right now when the deductible and depreciation have been taken care of. Once you’ve shown the work has been completed, the agent will then send you a check for the depreciation money that they’ve been holding as a thanks for completing the work.
