Claim an insurance for reroof or pay out of pocket?

Question

Hi all! The roof on my rental property has caused water damage inside. I've already filed a claim on my other rental property because the filter has leaked 2 years ago. Should I file another claim for a reroof or pay out of pocket? I understand that the insurance policy premium goes up if you've filed 2 claims in the last 5 years. I wonder if in the long run it would save me money to just pay out of pocket rather than filing a claim?

I'd appreciate your input! Thank you!!

I'd appreciate your input! Thank you!!

Jerry V. · Answer

From a Roofer...

Leaks can be fixed, fairly cheap compared to a claim process or replacing the whole roof.

IF needed (to replace the whole roof, if it is old), then you can file a claim... but what you "get" ($) depends on how you have the policy structured.  Is it a Cash Option setup?  (much less premiums, but only get get the Non-depreciated value (the 1st part) of any claim pay out.. so you only get Part of the payout of a claim)  Or, it may be a full replacement policy (only YOU or your agent knows this)  OR, you may have it setup with a 2, 3, 4% deductible... then you may as well never file a claim, because you won't get any $ anyway! lol

BUT the biggest thing ... remember that Insurance only pays to replace a whole roof, for hails and/or wind damage.  if it's just a leak, with no or minor interior damage, even if you file a claim you won't get any $ ! (because of the Deductible that is taken out)

Many variables here that none of us know about that only you can answer or deal with.  But those are the basics...

Have questions?  Email or message me.  (J's Roofing, Richardson, TX)

John Mocker · Answer

Kristal,

If the property is in FL the age of the roof could factor into the decision of repair or replace.  Based on what I've seen, the carriers that are still writing in FL are requiring roofs to be of a certain age or they will not cover the property.  Check with your agent to find out what other options are out there if the current policy cancels you.  Also check to see if the loss on the other property will count against the one with the roof leak.  If they are different policies (especially if they are from different companies) the loss may be counted as the first loss.  The agent should be able to give you a guess on what the loss will mean to your next renewal.

Jerry V. · Answer

@chris

@Chris Seveney  Thanks. (sheepish grin) lol

Yes, some adjusters that come out CAN be picky.  Again, they are only supposed to pass a roof for replacement if it has significant hail and/or wind damage. If it's old, worn out, etc ... that is not "supposed" to be a passable condition for them to pay for it!  But, most (not all) adjusters are 3rd party so, they are financially incentivized TO pass roofs (they make more $ !). It shouldn't be like this but sadly, the industry is. :(

Example: When no storms are in the area or recently happened, and a State Farm adjuster comes out ... that roof better have good hail on it! (or it won't get passed to replace)  St Farm uses salaried or NON-commisioned regular Adjusters to inspect things (when not busy).  But, their CAT teams are mostly 3rd party.... some info for ya! :)

Chris Seveney · Answer

@Jerry V.

Great points also I have had someone get denied an insurance claim on a roof and the insurance company subsequently canceled their policy because of the condition of the roof and essentially forced them to put a new roof on in order to get insurance covered again.

Jane S. · Answer

Can yhour insurance send an adjuster to see it and answer the question for you? Yes your insurance will go up but by hoow much is the q.

Chris Seveney · Answer

@Kristel Lim

How much damage and what’s your deductible

That will tell you whether it’s worth it.

Roof damage only covered typically if there was a specific event that damaged roofs an old roof or bad flashing which causes damage is not something a claim would cover

Ron H. · Answer

Just because the roof is leaking does not mean it is an insurance issue.  Is roof old and needs to be replaced or did a tree fall on the house?  Insurance rates are being driven through the roof due to too many false claims about roofs, causing other policy holders to pay the price.

Bo Bond · Answer

Kristel,

This is really a judgement call that depends on your current insurance and financial situation.

Yes, your premiums will likely go up, but they're likely going to go up anyway due to a hardening insurance market.  However, these two items together may compound your increase in premium, and point you more in the direction of paying out of pocket.  If the roof is close to 15 years old (or older), then I'd certainly be more inclined to tell you to consider paying for it yourself, as the roof has really reached the end of it's useful life in most cases (especially in heavy wind/hail prone states).  As any owner, you have a duty (per most insurance contracts) to "maintain" your roof and even replace it once it gets so old (especially if it's never suffered any significant wind/hail damage).  When you haven't had any significant wind/hail storms cause the damage, then many times the damage is due to "normal wear and tear".  If this is likely the cause for you, most carriers will deny this type of claim anyway since normal wear and tear is a typical policy exclusion.

All that being said, if the roof is newer (less than 10 years old) and you can point to a storm that may have directly caused significant wind/hail damage to the roof, then yes, you should consider filing a claim.  Again, whether you do or not really depends on your current insurance and financial situation.  In the end, the decision is up to you.

Claims will almost always influence your premiums, especially 2 with the same carrier in less than a few years.  At this time, we're seeing the hardening insurance market dictate premium increases of anywhere from 10% to 50%, and even more in tougher to write areas.  Many times, this is even for insureds with no losses in the past few years.  A hardening insurance market means rates/premiums go up, coverage forms get more restrictive, deductibles go up, and underwriters get more selective.  When you file claims on top of this hardening market, it usually only compounds things for the insured.  I'm not trying to sway you either way, but hope this direction helps you make an informed decision.

Sorry for your roof troubles.  I hope this helps!  Good luck!

Claim an insurance for reroof or pay out of pocket?

Most Popular Reply