Do you have the right Homeowners Insurance coverage?

Let's talk about your homeowners insurance. As a roof inspection company all too often we meet people who just do not have enough coverage when a catastrophe hits. Your homeowners insurance is something you just don't think about, until you need it. 

I bring this up, because recently I received a notice that my mortgage payment was going up to cover the increased cost of my 'hazard insurance'. Hazard insurance? What is that?

Apparently Hazard insurance is NOT the same as homeowners insurance. 

Hazard insurance covers my home from just that, hazards; things like fire, flood, hail, or vandalism. Now hazard insurance can cover more, so it seems I need to find out from my agent exactly what kind of coverage I have. 

Another issue people face is what kind of coverage they have. Most policies are for Actual Cash Value, (ACV), which are less expensive to the insured, (you the homeowner) and preferred by your insurer, (your insurance company).  Whereas a Replacement Cost Value, (RCV), policy costs more it also covers more. 

What is ACV? Well that is the actual cash value of the specific item, less depreciation. Perfect example, we all know that as soon as you buy a new car, it is worth 3k to 5k less as soon as you drive it off the car lot. Well that is depreciation! Just like a car, the roof on your home depreciates.  The insurance company may value your roof at $10,000, minus depreciation you could conceivably only receive 40% to 60% of that amount, plus your deductible is subtracted as well.

Obviously, the older something is, the less value it has, so ACV = replacement cost - depreciation. Every insurance company has its own formula for depreciation.

RCV is the cost to replace the property on the same premises with other property of comparable material and quality used for the same purpose.  So if you have a roof that will cost $10,000 to replace, your insurance company is responsible for the entire cost, minus your deductible. 

Some policies have different deductibles for regular coverage and catastrophe coverage. For instance, my policy has a regular deductible of $500, but for hail or wind damage to my roof, the deductible is $1000.  That might save me a few bucks a year, but if I don't have a $1000 than I can't get my roof fixed.  

(We'll cover scammers offering to pay your deductible next week)

Another coverage people often do without; code upgrades.  In the last few years many of Colorado municipalities have re-written their building codes. What does that mean for you? If your roof does not have metal at the eaves and rakes and it is required by building code; the roofer must install it and you must pay for it. There are more code upgrades and all of them will increase the cost of your roof repair or replacement. 

The economy has made it tough, many folks have chosen to reduce their monthly homeowners insurance by reducing their coverage not understanding exactly what it will mean in the long run. 

Talk to your agent and have them explain what coverage you have and how it will affect you should a catastrophe occur. 

Colorado Hail Storms and how they damage your roof.

Colorado is part of what people call Hail Alley. What that means is that we typically receive more hail, as well as larger hail at greater velocities than other areas. Hail causes an estimated $1 Billion dollars a year in damage, and in Colorado, approximately $25 million.  The spring storms also bring out storm chaser. The last few years the news has been filled with homeowners being cheated by out of state 'roofers'.

In response insurance companies are trying to be more careful, often telling people that if they file too many claims their insurance could go up, or be cancelled.  The 'Door Knockers' will try and tell you this is not true. But it is true, however, that does not mean you should not file a claim. 

When should you file a claim? I was reading this interesting article by Keith Wainauski he says "“Insurance is something that should be used on things that are going to ruin your life not your day“.  That seems like a great rule of thumb to follow, almost.


Most wind claims can be repaired for less than $200. Depending on your deductible, you could and should pay that out of pocket.  That doesn't mean you don't make a claim, because your insurance company wants to know that you are paying attention to and taking care of storm related damage.

I am always saying, have you had your annual roof inspection? Well here are a few reasons why:

1. Regular inspections equals regular maintenance, which maximizes the life of your roof. It is just like regular oil changes for your vehicle, it extends its life as well as pointing out possible future problems so you can be prepared.

2. Regular inspections means you have clear, authoritative evidence about your roof's condition should you receive hail or other storm related damage. It also will tell you things you can do to protect your roof, like trimming back branches that could rub or crash down.

3. Inspection after a severe storm - What might start out as an inexpensive repair, can turn very costly if missed. Even pea sized hail if driven by very strong winds can damage older asphalt shingles, as well as the flashing around the penetrations in a roof. This can allow water to penetrate and cause even more damage.

If hail tore branches off the trees in your yard, dents on your car, cracks in windows, just imagine what it did to your roof?  Also when water does penetrate, where you may see evidence of it inside your home, doesn't always correlate to where the leak is on your roof.  Most people believe that the hail has to be huge to cause damage, that is just not true. While size is a factor, wind and the density of the hail also plays a role.

Hail damage can occur to your roof, siding, windows, screens, decks, etc. Call a licensed roofing contractor to inspect for damage. Check out the Colorado Roofing Association or the Better Business Bureau, both have listings for local roofers.