Dealing with roof damage can be a stressful experience as you navigate the insurance claims process.
And considering how deductibles can affect you, you may be interested in understanding insurance deductibles so that you know what you will have to pay out of pocket in the instance of an insurance claim.
Using our experience with both small and large insurance companies, we successfully assist around 200 clients with their insurance claims every year. We at Linta Roofing know that this process can be daunting, but what tends to help our customers is providing the assistance and the knowledge they need to move forward confidently.
A rule of thumb in the world of homeowners insurance is that you will be responsible for paying a deductible if you make an insurance claim. However, that amount can vary based on how your insurance company assesses the damage to your home.
Your deductible will be the minimum that you will be responsible for paying out of pocket if you file an insurance claim. Every policy is different, however, most policies have 2 different types of deductibles. A “Named Storm” deductible and an “All Other Perils” deductible.
Let’s look at how named storm deductibles and all other perils deductibles affect the amount you are expected to pay.
How Much Will My Deductible Be? (Named Storm and All-Other-Perils)
You can consider your deductible like a co-pay at the doctor’s office.
Similar to health insurance, you won’t pay the full amount of a doctor’s visit. Instead, there’s a specific amount you might be responsible for depending on your coverage and the nature of the visit.
Homeowners insurance works similarly.
With most policies there are two types of insurance deductibles:
- A Named Storm Deductible:
A named storm deductible will typically cost a homeowner 3% to 5% of the insured value of your dwelling.
-For example: If your home is insured for $300,000 and you have a 3% deductible, the minimum amount you will pay out of pocket is $9,000.
- All-Other-Perils Deductible:
An all-other-perils deductible will generally cost a homeowner around $1,000 – $2,500. The amount under all other perils is generally on your insurance declaration page.
It is important to note that the amount of damage to your roof has to equal more than your deductible amount to receive a payout from your insurance company.
Based on the damage to your roof, you may be eligible for a named storm deductible or an all-other-perils deductible.
But what type of damage constitutes each deductible? Let’s take a look.
What is a Hurricane/Named Storm Deductible?
A named storm deductible is implemented when you have experienced damage to your home due to any named storm, including a hurricane or a tropical storm along the coast. (For example “Hurricane Irma” or “Tropical storm Ida”)
Your insurance company will typically have a higher deductible in your policy for named storms as you are more likely to receive significant damage from named storms.
If you have damage from a windstorm or driving rain, the named storm deductible may not be applicable for you. In this case, you are more likely to pay the all-other-perils deductible.
What is an All-Other-Perils Deductible?
An all-other-perils deductible is designed to encompass a broad range of damages. Unlike a specific peril deductible, which applies to particular types of damage like windstorm or fire damage, the all-other-perils deductible is more general.
This could include damage from driving rain, windstorms, hailstorms, fire damage, flooding, or burst pipes. An all-other-perils deductible amount tends to be anywhere between $1,000 to $2,500 It could also be a percentage of the property value, such as 1% or 2%.
The amount of the deductible and the specific perils covered can vary between insurance providers, so it is necessary to be aware of the coverage details to ensure adequate protection in the event of loss.
Understanding Deductibles Beyond the Claims Process
Navigating the insurance claims process when you have damage to your home can be quite stressful.
Understanding your deductible amounts can help ease some of that stress as you move forward. However, it may be beneficial to speak with a roofing contractor who can help you through the insurance process, as each insurance policy is different.
Even with all of the moving parts involved in your insurance claim, it is important for you to have the clarity you need. Be sure to check your declarations page as you continue through this process.
If you need any additional help, your local roofers at Linta Roofing are available to assist you through this process and provide you with the peace of mind you deserve.