When replacing your roof, there are two ways that you can finance it: pay for it yourself through financing or cash, or file an insurance claim. The question is, what sort of damages do insurance companies cover?
In this article, we will explore your reroofing financing options in detail so you can get the necessary repairs done within an affordable price range.
Self-Pay vs Insurance: Which Should You Use For Your Replacement?
Your roof is an integral part of your home’s structure. As such, the dwelling coverage section of your homeowner’s insurance policy will usually cover damages incurred. Damages can result from bad weather conditions, falling objects, or simply because of deterioration over time.
While some policies pay up to the full amount to repair damages to your roof, others pay less if the roof is older or showing signs of wear and tear.
It is important to check for any changes to your policy if you renew it. Some companies can switch to paying less as a roof ages without explicitly telling you. If your roof is in a really bad condition, insurance companies might not want to cover it at all.
If your home has been damaged because of an object falling on it or through bad weather, then you will be able to file a claim. However, it is unlikely that your insurance company will pay for a new roof simply because it is nearing the end of its lifespan.
You will need to pay a policy deductible if you file a claim, which is a specific amount payable before the insurance company covers your claim. Make sure to ask beforehand how much the deductible will be, and if it differs based on what type of damage took place. Depending on where you live, the deductible may be higher for damages that ensue from hurricanes or hailstorms.
The average price range for a roof replacement can range from $260 to $700 per square foot. By weighing the total price for repairs against the deductible you would have to pay if the insurance covers it, you can determine if paying for it yourself is best.
Pros and Cons of Self-Pay
Replacing a roof is costly. However, reroofing your home has several benefits, such as boosting curb appeal. And, you will definitely sleep more soundly knowing your house is well-protected from the elements.
Depending on your contractor and availability, there are a few payment options to weigh up if you want to replace your roof.
A personal loan, home equity loan, credit card, point-of-sale financing, and lastly, cash, are all viable options to help you reroof your home.
Pros of Paying With Cash
Paying with cash is fairly easy and straightforward in terms of roof replacements. Unlike a loan, you won’t need to have a great credit score in order to secure your financing. Plus, you also won’t need to pay back any interest.
In other words, if you have sufficient amounts of cash saved up, then it’s probably your best bet. However, if you only have an emergency fund, then it’s probably best to not use it.
Remember to ask for a signed receipt, as cash doesn’t leave an online trace as with credit cards.
Cons of a Cash Payment
You always need to be prepared for emergency situations. So, make sure that your other funds don’t suffer because of your roof replacement. Only pay in cash if you have enough to finance your roof replacement whilst covering other expenses.
What Does Insurance Usually Cover?
Insurance mostly covers damages to your roof caused by unexpected events, like certain weather conditions or objects that can fall on your roof. Since every insurance policy differs, it is important to know what you are covered for before you sign the dotted line.
Insurers also usually don’t cover a roof that is already very old. Some policy exclusions could include improper maintenance or neglect. Certain roofing materials may also be excluded, like cedar or recycled shake shingles.
Firstly, It is best to always go through any insurance policy before settling on coverage for your home’s roof. Secondly, if you are replacing your roof, weigh up any deductibles against the costs of fixing the roof yourself before filing an insurance claim.