Living in a hail alley indicates that your home is more likely than not to be hit by a hail storm.
When a hail storm occurs, homeowners usually fear that filing a claim would raise their insurance premiums, or they hope for the best, which is that their insurance will cover any hail damage.
The good news is that hail damage is typically covered by insurance if you make a claim within the right time limit following the storm. Unfortunately, making a hail damage claim may result in an increase in your premiums.
Some companies account for the frequency of hail and are already planning for future hail damage by charging a higher premium for homes in “Hail Alley.”
In this case, making an insurance claim should not result in a premium rise. It may, however, escalate if claims are made often.
Let’s take a look at the elements that influence whether or not submitting a hail claim will raise your premiums.
What’s Your Region?
Is hail uncommon in your region? Your homes insurance provider most likely did not take this into consideration when quoting you. In that case, submitting a claim will almost probably result in a rate rise. Continue reading to see whether this is something you’d be interested in.
Do you live in a hail-prone area, commonly known as hail alley? Placing a claim should have no effect on your premium because the insurance company should have considered this financial loss earlier.
According to FEMA’s National Risk Index, a central strip running across the center of the United States is considered to be at very high risk for hail. A severe hail valley also exists, encompassing Colorado, Nebraska, and Wyoming.
Other sections of the country, on the other hand, are prone to hail. Furthermore, anyone residing in a recognized hail zone should be able to make an insurance claim without suffering a premium increase.
What Are Your State’s Laws?
Some jurisdictions protect their residents by prohibiting insurance companies from raising premiums in the aftermath of a claim. The state of Texas is well-known for barring insurance companies from raising rates after a single claim. This service, however, is not available in all states. Check the laws in your state.
Insurance consumer protection laws usually prevent insurance companies from raising rates when:
· a single claim is made
· a denied claim is made (you don’t get compensation)
· a claim inquiry is made, but not filed
· a claim is made due to regularly covered perils like weather, natural disasters, and Acts of God
What’s Your State’s History?
In some places, insurance companies have been known to boost prices across the board the following year when a considerable amount of hail falls. Nebraska, a renowned wind-and-hail state, is unfortunately one of these.
If you live in an area that has a high degree of hail damage in a particular year, your insurance premiums will likely increase the following year. And whether you file a claim or not, your rates will climb.
An insurance company may boost all rates charged in your region in order to recuperate their losses.
How Frequently Have You Made a Claim?
An insurance company may not boost your premiums after a single claim. However, if you make two, three, or four claims within three years, your rates will almost certainly climb.
Have you made any recent claims? Depending on the amount of the damage, if you placed a huge one during the previous three years, it may not be worth it to make another.
To track claims over a seven-year period, insurance companies utilize a database called the Comprehensive Loss Underwriting Exchange. Every claim filed against your property is logged in this database, which is accessible to all insurance carriers.
This is why previous homeowners’ or other insurance company claims might affect your rate.
You can acquire a free C.L.U.E. report every 12 months to see what’s on it.
What’s Your Wind and Hail Deductible?
Some insurance companies give a higher deductible for wind and hail damage. Is it the same as yours? Don’t assume you’ll get the standard level of coverage before filing a claim.
Examine your insurance coverage. Check the deductible conditions and any fine print. It’s also a good idea to research your insurance company’s hail damage coverage terms as well as what other homeowners have experienced.
Some insurance companies set wind and hail deductibles, which might be flat or percentage-based. This implies that a 5% windstorm deductible on a $250,000 property will result in a $12,500 out-of-pocket expense before insurance kicks in.
Is Going Through Insurance Worth It?
Hail damage should always be repaired. If water continues to run through damaged areas, even modest damage can soon turn into a major roofing repair.
Is it worthwhile, however, to involve your insurance provider? When the roof has been severely damaged, the answer is generally a straightforward “yes.”
Smaller repairs, on the other hand, might not be worth claiming. Roof repairs that cost several thousand dollars may not be worth filing an insurance claim for.
Here are a few things to think about:
· What’s the estimate?
· What’s your hail deductible?
· How much will the insurance company cover?
· Is insurance covering that much more than you would pay?
· Have you made recent claims? If so, will paying a higher premium rate over a few years cost more than the repair?
How Much Will the Repair Cost?
Repairing hail damage is not always a tough process. Individual shingles can be replaced, and damaged regions can be re-roofed. This sort of spot treatment is rather inexpensive.
The bigger the damage, the more it will cost. This generally depends on a few factors:
· how bad the storm was
· the hail size
· how old/well-maintained the roof is
· how hail resistant the roofing material is
The cost of repairing every 100 square feet, according to one roof work calculator, ranges from $550 to $1,550. It all relies on the severity of the injury.
Following a storm, it is suggested that you contact a local roofer for a hail damage examination. Minor dents, granule loss, and fading from hail might go undetected, but failing to fix it leaves the roof more vulnerable to future storms.
Ask Your Trusted Local Roofers About Hail Repair and Homeowners Insurance Advice
Trying to decide whether or not to make a hail damage claim? A trusted local roofer is your best friend. That’s us a Canopy Roof and Solar.
We’ve done roofing work in the local Denver, CO area for over 20 years. We understand hail damage and get how the insurance companies work around here.
Ask us for a hail damage roof inspection. We’ll tell you how bad the damage is, provide an estimate on what the repair costs will be, and let you know whether or not insurance may be worth it.