The subject of deductibles can be uncharted territory for the newly-minted and not-so-new homeowners. However, understanding it is important, particularly if the roof replacement is prompted by damage caused by a storm or similar conditions. In today’s post, local roofer company Jack The Roofer shares a quick guide to roof replacement deductibles.
The Role of Deductibles in Roof Replacement
A deductible is an insurance term that refers to the amount that a property owner pays towards the cost of an insurance claim. Simply put, it’s the amount that’s deducted when an insurance claim is paid out. For insurance providers, deductibles help mitigate the risks involved, since homeowners’ insurance coverage can be seen by some as an incentive to neglect their roof. A deductible mitigates that risk because the policyholder becomes responsible for a portion of the costs. This is why well-cared-for roofs have a relatively lower deductible.
Roofing-related insurance claims are typically paid out to the homeowner’s chosen roofing contractor in two checks: the first one covers the down payment, which allows the roofer to get started on the project. The second check covers the remaining balance on the estimate — after deductibles. This means the amount reflected on the check, paid out to the homeowner’s roofer, would be less than the actual balance and the policyholder, as discussed above, is responsible for the rest.
Named-Peril vs. Open-Peril Policies
You may already have come across the terms “named-peril” or “open-peril” when discussing your coverage terms with your insurance adjuster. In insurance terms, “perils” are the types of damage that may and may not be covered by your policy. Named-peril policies cover damage caused by perils that are specifically listed in the policy. Contrastingly, open-peril policies cover all types of loss or damage except those that are specifically listed in the policy. The percentage of deductibles can vary between insurance providers, sometimes even between perils. If the cause of the damage happens to be excluded from the policy, the insurance provider may see it fit to deny your claim.
If all of this still sounds overwhelming, don’t worry. An experienced roofer like Jack The Roofer can help you navigate the process and get your roof replaced sooner rather than later. Give us a call at (720) 722-2255, or fill out our contact form to schedule an appointment. We serve Denver and Parker, CO, as well as the surrounding communities.