A roof replacement is no small task. Not only does a roof replacement take time, but it also takes a significant amount of money to get the job done.
This is where it’s essential to understand your roof replacement deductible on your insurance policy.
A deductible is a set amount of money a homeowner is responsible for paying toward the cost of their insurance claim; in this case, a roof replacement.
This means if your new roof costs you $8000, but your deductible is $1500, you will pay $1500 out-of-pocket. Your insurance provider will pay the other $6500.
Outside of the logistics of how a deductible works, there are some other factors that play in when replacing your roof.
Before you file a claim to replace your roof, here are 4 things you need to be aware of regarding deductibles and roof replacement.
If you’re in the Tulsa or Broken Arrow areas, check out our roofing repair services.
While choosing the best contractor for your needs, you’ll likely come across some who offer to pay for your deductibles through discounts or allowances.
This sounds great, but in some states, this practice is illegal.
Contractors should not pay your deductible.
Avoid these contractors. Even if this practice isn’t illegal in your state, industry experts still discourage this type of incentivizing.
A good rule of thumb: any information about your deductible or insurance policy should be kept confidential between yourself and your insurance provider.
Deducting the Deductible
Some roofing experts recommend you talk to your tax adviser to see if your roof replacement deductible is tax-deductible.
This is a step that involves many conditions but may be worth it in the end, especially if it saves you a significant amount of money on next year’s tax returns.
Extras Don’t Count in Deductibles.
Your deductible may not be your only out of pocket cost on a roof replacement.
You also need to consider the cost of any extras or upgrades that aren’t covered by your insurance claim.
Typically, your insurance adjuster will offer the market price for having your existing roof replaced with a similar product.
If you want to upgrade to a superior material, you’ll have to pay the price difference for the better material, on top of your deductible.
Damage Specific Deductibles
The causes of property damage are known as “perils” in the insurance industry.
Most homeowners’ insurance policies come with an “all peril” coverage, which generally covers hail and wind damage, the most common causes of roof replacements.
Learn how to tell if your home has wind damage on our recent post.
With this type of policy, a single deductible applies to all covered damages.
But it’s important to check your policy thoroughly, because certain types of policies may list hail or wind as a named peril, or they may attach a separate deductible for your specific kind of damage.
Summary: Check your policy.
Be careful when choosing a contractor. Consider consulting a tax adviser. Understand you’ll pay for upgrades should you opt for any.
Know your insurance policy.
And turn to Prestige Roofing– your trusted choice for roofing in Broken Arrow and the entire Tulsa area. Give us a call at (918) 259-0877 or visit our contact page to ask questions or get a quote. We look forward to hearing from you!