Having a roof repair or replacement project done for your home or office is a difficult task, particularly, if it is an emergency. After all, you will need the funds to get the job done. This is where deductibles come in.A deductible is a specific amount of money that you, the homeowner pays toward the cost of an insurance claim. Once your deductible is met, in most cases the insurance company pays the rest.
Here is what you should know about deductibles and roof replacement before you file a claim for a new roof.
• Damage-Specific Deductibles
The insurance industry refers to causes of property damage as perils. Most homeowners insurance policies are structured with “all peril” coverage and are packaged with an “extended coverage” clause that covers hail and wind, the two most common perils leading to roof replacement. With this type of policy, a single deductible amount applies to all covered damages.
Other types of policies may cover hail or wind only as a “named peril,” or they may attach a separate deductible for your particular type of damage. It is essential to know what your policy covers and how deductibles are applied to roof replacement. High winds and hurricanes often are grouped under the common peril labeled “windstorm,” but some policies may include different deductibles for hurricanes as opposed to other storm events with high winds.
• Contractor “Discounts”
You may have heard of roofing contractors paying for customers’ deductibles or offering discounts to offset deductibles. Industry experts discourage this sort of incentivizing. It is illegal for roofing contractors in San Antonio to waive insurance deductibles.As a general rule, information about your deductible and your insurance policy rules should remain between you and your insurer.
• Deductibles Don’t Count toward Extras
When figuring your total out-of-pocket expense for a roof replacement, add your deductible to any extras or upgrades that aren’t covered by the claim payment. In a typical scenario of an insurer paying the replacement cost of a roof, the adjuster will offer the market price for having the existing roof replaced with a similar product.
• Deducting Your Deductible
Don’t get excited about this option before talking with your tax adviser, but it is possible that your deductible and other out-of-pocket expenses related to your roof replacement are tax deductible. Naturally, there are numerous conditions involved, and this needs itemizing your deductions on your tax return. Some conditions are time-sensitive, so be sure to consult a professional tax adviser as part of your claims process.