1. Check for Code Coverage
Building codes change over time, and if your home sustains damage, repairs or replacements must be up to current standards. Many homeowners assume their insurance will automatically cover code upgrades, but that’s not always the case. **Code coverage** ensures that your insurance company will pay for any upgrades needed to bring your home up to code after a covered loss.
For example, if your roof is damaged, but the local code now requires a higher-quality material or an additional layer of protection, code coverage will absorb those extra costs. Without it, you could be left footing the bill for upgrades mandated by law. So, before you need to file that claim, check if your policy includes code coverage or add it if necessary.
2. Opt for a 1% Deductible
When choosing a homeowner’s insurance policy, it’s essential to understand how deductibles work. Many policies have deductibles as a percentage of the home’s insured value. While some might offer 2% or higher deductibles, selecting a **1% deductible** can provide more financial flexibility when disaster strikes.
For instance, if your home is insured for $300,000 and your deductible is 2%, you’d have to pay $6,000 out of pocket before insurance kicks in. However, with a 1% deductible, you’d only be responsible for $3,000. It might increase your monthly premium slightly, but the savings when filing a claim can be significant.
3. Ensure You Have an RCV Policy (Replacement Cost Value)
Another critical component of a good insurance policy is whether it covers Replacement Cost Value (RCV) or Actual Cash Value (ACV). RCV policies cover the cost to replace damaged property with new materials, whereas ACV policies account for depreciation.
With an RCV policy, if your roof is damaged and needs replacement, the insurance company would pay the cost of a new roof, minus your deductible. However, if you have an ACV policy, the insurer would subtract depreciation, meaning you might only receive a fraction of the total replacement cost. The upfront savings of an ACV policy can seem tempting, but when it’s time to file a claim, you could end up paying significantly more out of pocket.
4. Get Your Roofing Company Involved
One of the best ways to ensure you are fully covered is by getting your roofing company involved before the adjuster’s inspection. A reputable roofing contractor can provide insights and documentation that can help streamline the claims process. They can also represent you, ensuring that the insurance adjuster doesn’t overlook any damage or necessary repairs. This can be especially helpful when verifying that your policy’s coverage, such as code upgrades or RCV, is applied correctly to the claim.
Before disaster strikes, it’s worth reviewing your homeowner’s insurance policy to ensure you’re fully covered. Make sure you have code coverage to avoid surprise upgrade costs, a manageable 1% deductible, and a policy that covers replacement costs instead of depreciated value. When the time comes to file a claim, don’t hesitate to involve a trusted roofing professional to represent you during the insurance adjuster’s inspection.
By taking these steps now, you can avoid unnecessary out-of-pocket expenses and ensure that you’re prepared for whatever comes your way.