This article relates to storm damaged roofs specifically, however it has relevancy with almost any incident you have filed an insurance claim on. Wind, water and fire damage claims all have similar issues to storm/hail damaged roof claims.
As roof claims are the most common, we will use them as our example. Our knowledge of this subject comes from years of working with homeowners and insurance companies to repair storm & water damaged properties throughout our region.
A question we frequently hear is; “Do I have to replace my roof?” The short answer is NO, BUT. To the untrained eye, a hail damaged roof looks just like any other roof, so you may take a look and say why bother. However with exposure to the elements and time, hail damage can create greater problems. Loose shingles, damaged vents, blistering shingles and other damages can lead to leaks or a roofing system failure.
Waiting too long to conduct the repairs may forfeit your ability to make any further reimbursement requests from your insurance company when you realize they are needed. This may create a scenario where your actual out-of-pocket costs could be greater than your policy’s deductible. Delays may also make your home susceptible to other damages which you may be limited or prohibited from seeking further claim funds from your insurance company. Such as water damage to roof decking, walls or the rafters.
Your insurance company cannot force you to repair your roof so they use other tools to encourage you to have the work done. The most common tool at their disposal is the depreciation withholding. This is where they hold back a portion of your claim until you document the work is completed. They also place time limits on when you can file for the depreciation or supplemental fund requests.
As they cannot force you to fix the damage, they do want you to be responsible for the consequences of not moving forward on the repairs.
When You Sell
When you sell your home, you have a legal obligation to disclose any items you have knowledge of that need repair. If you file insurance for a roof replacement and do not replace your roof, you will have to disclose this when you sell your home. Buyers may request you repair the roof or lower your sale’s price so they can have it repaired. Either way it could cost more than the insurance proceeds you received.
Another point to remember is your buyer may have challenges getting homeowner insurance or will have restrictions placed on their policy if unrepaired storm damage is found on the home. This may result in them requesting a repair, a price adjustment or delays in the closing date.
Future Claims
If your home is damaged by hail and you decide not to complete the repairs and another storm hits, you may have a new problem. Your insurance company may want to see proof you completed the previous work before they settle any current claims. They may also determine that some of the damage you are claiming from the current storm was actually damage from a previous event and not offer any insurance proceeds for those items.
Either way you could be left short of having the funds needed to repair your home when it is needed. Insurance Is To Help Make It Right Your policy is there to help you repair your home. Any perceived gain you may envision from not conducting the repairs will seldom serve you well in the long-term.
Work with a trusted contractor and he or she can explain the process, offer you value solutions and help get your property back into “>tip top shape. A well cared for and properly repaired property offers you value for the long-term.
Competitive Bids
One last note, it is often ingrained in us that we need to get competitive bids on all home improvements. I will save my quality over price post for another time. However, selecting the “cheapest” roofer seldom serves you well in storm repairs.
Your deductible is a constant so if you find a roofer who will work cheap, there is little benefit to your family. It only saves the insurance company some money. I seriously doubt it will save you any headaches.
Remember your insurance company does NOT warrant the repairs, they only pay for you to get the work done. You are the one who will have to chase down the bargain roofing company if you have a leak or they leave a mess after the fact.
Choose a trusted local contractor to do your repairs. He will work with your insurance company to find a fair price and provide you the warranty care you deserve. Local contractors that you know where to find and have a prominent role in the community have more to risk than a storm chaser with a sign on his truck.
Other Options
Ask your roofing contractor/builder about Class IV, Impact Resistant Shingles. These are designed to be hail resistant so you may avoid replacing your roof from hail damage in the future. They also offer insurance discounts which you can enjoy every year even if there is not a hail storm.
Questions
If you have an insurance claim but are not sure of your options, please feel free to email your questions to our offices or call your insurance agent and ask them to explain your options. Make an informed decision before making one that could cost you big money when you least expect it.
Please feel free to leave your comments, drop us an email at mike@garabedianproperties.com or call our office at 817-748-2669. I also encourage you to visit www.garabedianproperties.com to see our entire website.
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