You pay a significant amount for homeowners insurance, so it seems fair to expect a substantial payout when your roof sustains storm damage, right? Unfortunately, that’s often not the case. Insurance companies have one goal in common:
They aim to pay out as little as possible.
This is especially true with roof damage claims, leaving many homeowners wondering how to negotiate with their insurance company for a roof replacement to get what they’ve already invested.
Below, we’ll break down everything you need to know about maximizing your homeowner’s insurance. This guide will help you understand your options and how to approach filing a roof damage claim effectively.
Can I Negotiate With My Homeowner’s Insurance Company?
The first thing to know about getting a roof replacement through your insurance is that insurance companies don’t negotiate payouts. The amount you receive is based solely on your specific policy and the insurance company — which we’ll discuss shortly.
In general, homeowners insurance policies cover roof damage caused by sudden and unexpected events, such as:
- Storm damage (hail, tornadoes, hurricanes, high winds, and ice)
- Fire and smoke damage
- Electrical damage
- Falling trees or large debris
- Explosions
- Damage from riots or civil unrest
- Vandalism or malicious mischief
- Aircraft damage
The key question isn’t just about coverage percentages, but whether your insurance company will fully cover a roof replacement, only pay for repairs, or possibly not cover either option.
When Homeowners Insurance Doesn’t Cover Roof Replacements
The second important thing to understand about your homeowner’s insurance is that you can’t negotiate your payout, and there are specific situations where coverage may be denied.
These situations include:
- If your roof is nearing or past 20 years old, getting coverage for a full roof replacement may be denied. Older roofs are more prone to damage, meaning even mild weather conditions can cause issues like shingle loss or leaks. Insurance adjusters may also attribute damage to neglect due to the roof’s age. While this doesn’t guarantee you won’t receive any funds for repairs, your insurer could refuse to renew your policy until the roof is repaired, replaced, and inspected.
- Cosmetic damage won’t qualify for coverage. If your insurance policy determines the damage is superficial—such as scratches from a falling tree branch—you won’t receive reimbursement for repairs. However, if the damage is more severe, like broken tiles, your insurer is more likely to cover the costs.
- Preventable damage won’t be covered either. Roof leaks caused by storms might qualify for a claim, but if an adjuster finds that a pest infestation weakened your roof, they’ll likely deny it, citing a lack of routine maintenance.
- Additionally, certain natural events, like floods or earthquakes, are excluded from standard homeowners insurance policies. Earthquake-related damage to your roof, for example, would require additional coverage, known as a rider. In disaster-prone areas, like those with frequent tornados, specific riders are often needed to receive coverage for such events.
Types of Roof Damage Coverage
Exclusions are only one aspect of your policy that requires careful review. It’s equally important to understand the type of policy you hold to assess your chances of receiving replacement coverage.
Your policy will either be an Actual Cash Value (ACV) or Replacement Cost Value (RCV) policy. While both provide a payout, the amount you receive will differ significantly depending on the policy type.
Actual Cash Value (ACV) Policy:
With an ACV policy, your insurance company only pays for the current value of your roof, factoring in depreciation. As your roof ages, its value decreases, meaning your payout will also be lower. This often results in a payout that won’t fully cover the cost of a complete roof replacement.
Replacement Cost Value (RCV) Policy:
An RCV policy provides coverage for the full cost of a roof replacement, minus recoverable depreciation. Initially, you’ll receive a check for your roof’s current value. After completing the replacement and submitting proof of the work, you’ll get a second check covering the depreciation. This ensures you use the funds for actual roof replacement, preventing insurance fraud.
Important Considerations:
Neither policy covers 100% of your replacement costs. With an ACV policy, this is clear since depreciation reduces your payout. With an RCV policy, your insurer only pays to restore your roof to its original condition. If you choose to upgrade materials, such as switching from 3-tab asphalt shingles to architectural shingles, you’ll cover the cost difference yourself.
The Best Way to File a Roof Insurance Claim
You can’t negotiate roof replacement payouts with your insurance company, so the best way to ensure you get what you need is by filing the claim accurately, with the help of your roofing contractor.
Here’s the process to follow once you understand what your insurance policy covers:
- Assess the damage. After a major storm or accident, start by inspecting the damage yourself. Walk around your property to get different angles of your roof, checking for missing or broken shingles, dents, holes, and other visible issues. Don’t forget to document everything, and pay attention to the condition of your gutters and siding.
- Contact a reliable roofing contractor. Most professional roofers offer free inspections after storms. It’s safer to avoid climbing up yourself, as contractors are trained to assess and document roof damage thoroughly. They can also identify storm-related damage that may not be visible to you and provide an accurate repair estimate.
- File the claim. Use the roofer’s report and clear photos to complete your roof insurance claim. Once filed, an insurance adjuster will visit your home to inspect the damage and determine if the claim is valid.
Here are a few key points to remember during the insurance claims process:
Only insurance adjusters have the authority to approve your damage claim. If your claim is denied, you can request a different adjuster from most insurance companies or hire a public adjuster for a second opinion. It’s a good idea to have a reputable roofing contractor present during the adjuster’s visit to ensure no mistakes are made. Your roofer can support your claim by providing their report, which may help influence the adjuster’s decision to approve the replacement cost. If your claim is still denied despite strong evidence of storm damage, you can seek legal action through an insurance claim dispute attorney, potentially leading to a larger settlement.
Do You Need a Roof Replacement?
You can’t negotiate with your insurance company to fully replace your roof, but you can review your policy to understand what’s covered. Finding a roofing contractor who will guide you through the claims process can also be helpful.
At Shumaker Roofing, while we can’t file your claim or guarantee approval, we provide expert insurance claim support to help you achieve the best possible outcome. Plus, with some of the best warranties in the industry, you can rest assured your investment is protected for years.
Contact us today to schedule a free roofing inspection or learn more about our storm damage services.
Conclusion
In conclusion, while you can’t directly negotiate a roof replacement payout with your insurance company, understanding your policy and the claims process is crucial to maximizing your coverage. Reviewing your policy, documenting storm damage, and working with a reliable roofing contractor are essential steps to ensure your claim is handled accurately. At Shumaker Roofing, we guide you through the insurance claim process and offer top-tier warranties for lasting protection. By staying informed and proactive, you can increase your chances of receiving the necessary funds for a roof replacement when needed. Contact us today to schedule a free inspection.
FAQs about negotiating a roof replacement with insurance in 2024
1. Can you negotiate the payout amount with your homeowner’s insurance for a roof replacement?
No, you can’t directly negotiate the payout. Your policy and the adjuster’s assessment determine the amount.
2. What types of roof damage does insurance typically cover?
Insurance typically covers damage from storms, fire, falling debris, vandalism, and other sudden events. It doesn’t cover wear and tear or neglect.
3. How can you improve your chances of getting your roof replacement claim approved?
To increase your chances, document the damage, hire a reliable roofing contractor for an inspection, and submit all necessary evidence with your claim.
4. What’s the difference between an Actual Cash Value (ACV) policy and a Replacement Cost Value (RCV) policy?
An ACV policy pays for the depreciated value of your roof, while an RCV policy covers the full replacement cost after you complete the repairs.
5. What should you do if your roof replacement claim is denied?
If your claim is denied, you can request a second adjuster’s opinion or hire a public adjuster. Legal action through an insurance claim dispute attorney might also help.
