On an introductory note, a deductible is a specific amount of money that the house owner pays toward an insurance claim’s cost. For a situation like this, it has to do with a roof replacement. Upon completion of your deductible, the insurance company pays the rest. For instance, if the cost of a new roof is $20,000, and your deductible is $4,000, your insurer will pay the sum of $16,000 for the roof replacement. That’s how simplified it is having said that deductibles and other insurance policy attributes differ by company and one’s specific insurance product.
Here are the basic things to know about deductibles and roof replacement before filing a claim for a new one.
Damage-Specific deductibles
The term “peril” is used by the insurance industry to refer to the causes of the property damaged. Most homeowners’ insurance policies have all “all peril” coverage and packaged with an “extended coverage” clause that includes the coverage of hail and wind, the two most prominent perils that lead to roof replacement. In this type of policy, a single deductible amount applies to all damages covered.
Other types of policies may cover hail or wind strictly as a term referred to as named peril, or a separate deductible may be attached for one’s specific type of damage. It’s crucial to know what one’s policy covers and how deductibles are applied to roof replacement. High winds, hurricanes, and tornadoes are usually grouped under the common peril tagged “windstorm.” Still, some policies may include different deductibles for hurricanes instead of other storm crises with high winds. The essential point here is: check your policy.
Contractor Discounts
It might not be news of roofing contractors paying for customers’ deductibles or offering discounts or allowances to offset deductibles. Well, Industry experts discourage this kind of incentive and gesture, and in some states, the practice is seen as illegal. As a general rule, information about one’s deductible and insurance policy rules should remain between them and their insurer. Also, contractors should not pay a homeowner’s deductible.
Deductibles Don’t Count Toward Extras
One’s deductible should be added to any extras or upgrades that aren’t covered by the claim payment upon an estimation of one’s total out-of-pocket cost for a roof replacement. If an insurer is paying the replacement cost of a roof, the adjuster will offer the market price to replace the existing roof with a similar product. This means that If your old roofing is standard 3-tab asphalt shingles and you want to replace it with a higher grade of “architectural” shingles, you’ll have to pay the cost difference for the quality roofing material on your deductible.
Deducting Your Deductible
One shouldn’t be over-excited about this option before talking with one’s tax adviser. Still, one’s deductible and other out-of-pocket expenses may be related to a roof replacement are tax-deductible. Naturally, there are many factors involved, which require itemizing your deductions on your tax return. Some conditions are time-sensitive, so one should ensure to consult a tax adviser as part of one’s claims process.
For more information on homeowner’s insurance deductibles and claims for roof damage, get an expert, licensed, and reliable roofing contractor in Canton Michigan to perform the actual repair and replacement.
