A new federal rule has allowed insurers to shift roof-replacement costs onto homeowners. The change took effect just before hail and hurricane season began. Homeowners now face a difficult financial decision after storm damage.
Those who find extensive damage to their roofs might be stuck between two options. They can file an insurance claim, which could trigger a premium increase. Alternatively, they must pay out of pocket for necessary repairs or replacement.
The rule modifies how insurers calculate depreciation on roofing materials. Previously, policies often covered full replacement costs minus a deductible. Now, insurers can apply a formula that reduces payouts significantly.
This adjustment targets roofs older than ten years. Homes with aging roofs now receive lower claim settlements. Homeowners must cover the difference between the settlement and actual repair costs.
Industry experts say the rule aims to lower insurance premiums statewide. Critics argue it simply transfers financial risk to policyholders. The timing coincides with peak storm seasons, raising concerns about affordability.
Homeowners should review their policies carefully before storm season arrives. Understanding specific coverage terms for roof age and materials is critical. Consulting with an agent may clarify potential out-of-pocket costs.
For some, the most affordable option might be skipping minor claims. Paying for small repairs directly can avoid premium hikes. However, major storm damage leaves few practical alternatives beyond filing a claim.
