Making an Insurance claim after Zeta? Think twice!

Our favorite roofer called today and explained he is still seeing a lot of work repairing damage from Hurricane Zeta. He was kind of frustrated that many clients are getting trapped into replacing roofs they really can’t afford. Here is a common scenario:
• Homeowner has a bit of roof damage and files a claim
• Adjuster come out and agrees that the roof is a total loss
• Then they call the roofer who gives them a bid of $12,000 for a total replacement. Roofer also says they could actually make repairs (not as good as a new roof of course) for about $5,000.
• Insurance company reminds them that their hurricane deductible is 5%, or $17,500 on a $350,000 policy in the example the roofer shared. To add insult to injury, the insurance company tells the homeowner they have 60 days to replace the roof because the adjuster declared it a total loss. Insurance company won’t pay anything because the roof replacement is less than the deductible. And even though the insurance company didn’t pay, they have to keep a record that there was a claim on the property. And if the adjuster goes back out in 60 days and the roof wasn’t replaced, the insurance company can cancel the policy.

If the homeowner had checked their deductible and called the roofer first, they may have decided to spend $5,000 repairing the roof and not even bothered making a claim. Now they are basically forced to pay $12,000 out of pocket to replace the roof.

Or, if they had a 2% deductible and called their roofer, the homeowner could then decide to make a claim and get a new roof for about the same price as a repair or skip the claim and just repair the roof. The homeowner would be in control, not the insurance company.

Lessons:
• Know your deductibles. Ask your agent about wind, named storm and hurricane deductibles. Can you get a 2% hurricane deductible instead of a 5% wind deductible? An agent just told me that many carriers are now offering $1,000 – $2,000 deductibles for not much more than 2% or 5%. Ask your agent!!
• Get a bid before filing a claim if you suspect your deductible is higher than the repair cost
• Make sure you are working with a knowledgeable, helpful insurance agent who can guide you through this process.
• Use a good roofer who knows the insurance claims process