Storms and hurricanes are not rare events for Florida and other coastal residents. Therefore, roofing damage is also frequent for Sunshine State homeowners.
Since roof repairs and replacements are expensive, it is necessary to have roof insurance. Besides, your roof is that significant investment that protects your home from weather elements. But, there are several types of insurance. So, how do you know which of them is the most convenient for you?
Don’t worry, Ridge Valley Exteriors will put light on this matter explain t you the basics about roof insurance in Tamps, FL as well as other states affected by hurricanes!
Types of Roof Insurance Policies in Coastal States
Generally, the coverage in a home insurance policy protects your home structure from some hazards -including the roof. Thus, it is clear why having insurance is necessary. However, before acquiring roof insurance for your Florida home, you should make sure you understand the types and their policies.
Actual Cash Value (ACV) and Replacement Cost Value (RCV) are the two forms of roof insurance most providers offer. Let’s see what each of them means:
- Actual Cash Value — in this case, the reimbursement you’ll get from your insurance company will depend on the value of your roof when you file the claim. Thus, the insurer considers your roof age and state to deduct depreciation from its initial value. So, insurance companies will pay less for older roofs with this type of insurance.
- Replacement Cost Value — Here, the insurance company agrees to pay you the amount it would cost to replace your roof with a similar new roof. To do so, your claims adjuster will investigate the prices of new roofing materials equivalent to what your roof has now.
RCV does not consider depreciation, so you do not have to worry about your roof’s age. RCV is more expensive than ACV, but it’s certainly worth it.
If you have a relatively new roof, it is not necessary to pay for the more expensive option. But, if your roof is older than a certain age, some insurers may automatically assign you replacement cost coverage. Likewise, others may allow you to choose between ACV and RCV.
Finally, to make a choice, you have to consider your budget and your roof’s age.
What Is HO3 Insurance?
After purchasing a home in Florida and many other coastal states, the first thing you should buy is comprehensive HO3 insurance. This policy offer coverage for owner-occupied single-family houses against all sorts of damage, including roof damage. Likewise, it provides good coverage for personal belongings. This home insurance policy is the most common in the United States. Besides, if you use HO3 insurance in Florida, you also can have RCV coverage.
Can Home Insurance Policy Exclude Roof Replacement?
Usually, home insurance covers roof damage when caused by events of nature. However, your home insurance coverage may not cover damage to your roof in certain circumstances. Your insurance company may have included roof exclusion in your policy if your roof is in bad shape. Thus, you should check with your agent or insurer to be sure.
Moreover, have in mind that home insurance commonly does not cover natural wear and tear related-damage. Rather, it pays for sudden and accidental damage repair.
This is a good reason for performing regular roof inspections with a reputable local roofing company.
Are you planning to buy a new home in Florida, Mississippi, Alabama, Louisiana, or Texas? Don’t forget to find out the age and condition of that home’s roof. A roofing expert contractor like Ridge Valley Exteriors will be useful in these cases.
For Choosing the Right Roof Insurance, You Should Be Informed
You need to consider various elements of your financial condition to choose between ACV and RCV coverage. Likely, it will be more costly, and if you don’t have the money to pay for an RCV policy, you may consider ACV coverage. But, if you have the means to acquire RCV insurance, it might be a smart decision.
On the other hand, it may be difficult to understand roof insurance. That large amount of clauses may get dazed and confused to anybody! Yet, stay informed about this matter is crucial.
Be aware that some insurance policies may have storm and hail exclusions. So, read your policy to find out the limits of your deductible and coverage. Also, you can call your agent for help adjusting them to your needs.
Besides, you always can contact Ridge Valley Exteriors for all your roofing needs! We’ll be glad to help.
One thing is for sure, you should never buy an insurance plan you don’t fully understand!
If you have important homeowners’ insurance questions like these, please call Ridge Valley Exteriors anytime at 844-741-7663. We have offices in Marco Island, and Tamps, FL, Kennesaw, GA, and Raleigh NC.