Whether you’re trying to file a claim after your home sustained damage or just want to find home insurance that will protect your property in the years to come, this guide is a great place to start. We’ll explore common types of coverage, how your coverage determines the claim worthiness of your damage, what you can expect from the claims process, and how you can protect yourself from low-quality or fraudulent insurance scams.
Your Insurance Coverage Matters
According to the Texas Department of Insurance, most home policies cover storm damage – including damage due to sudden bursts of water but not due to slow continual leaks.
What’s the Difference Between RCV and ACV?
In Texas, there are two primary types of coverage: Replacement Cost Value (RCV) and Actual Cash Value (ACV).
- RCV covers the full cost of repairing or replacing your roof without accounting for depreciation (a loss in value due to age and wear). Homeowners with RCV coverage will typically pay a deductible while their insurance covers the rest.
- ACV, on the other hand, covers the replacement cost of your roof minus years of use (depreciation) at the time of the claim. So, homeowners with ACV coverage may have to pay more out-of-pocket since the payout is lower due to depreciation.
Deductibles and Policy Limits
Deductibles are the dollar amount or percentage you need to pay out-of-pocket before your insurance kicks in. Unlike health insurance, where a deductible is considered over a year, home insurance deductibles are applied to each claim. Typically, higher deductibles are found in lower-cost policies, and lower deductibles are found in higher-cost policies.
Policies also have a dollar limit over which coverage ends. Make sure your policy’s dollar limit is enough to cover your property in the event of a total loss – otherwise, you’ll have to pay the difference yourself.
Many homeowners get confused about where to find information about their deductibles. While you could call your carrier, this information can be easily found on your policy.
Is Your Damage Claimworthy?
Wondering what makes damage claim-worthy? If your roof has suffered damage and you’re wondering what your next step should be, schedule an inspection with a contractor. Our team will assess the severity of the damage and help you determine whether filing an insurance claim makes sense for your situation (filing a claim can impact your insurance premiums or renewals in the future).
If a claim is recommended, we’ll walk you through the process step by step. If not, we can offer a competitive cash quote to restore your roof and extend its lifespan.
Understanding the Claims Process
In a nutshell, here’s how the claims process works:
- Step 1: Initiate the Claim with Your Carrier.
- Step 2: Schedule an Adjuster Inspection.
- Step 3: Receive Payout and Begin Repairs.
- Step 4: Complete Repairs and Submit Certificate of Completion.
But there’s some important information you should know about these steps. For instance, adjusters can be in-house employees of your insurance carrier or third-party adjusters. In-house adjusters typically have a good track record of writing fair claims, while third-party adjusters, hired when in-house adjusters are overwhelmed, can be a bit less predictable. It can be useful to know the difference.
Likewise, your payout may be determined with Xactimate, a software used by adjusters to estimate repair costs using local material and labor prices, or other services that have several contractors quote or bid the costs to homeowners. Understanding how your estimates are generated and why can bring some clarity to the process.
Safeguarding Yourself from Insurance Fraud
As the Texas Department of Insurance (TDI) states, insurance fraud occurs when people “lie or misrepresent facts for financial gain.” This can involve luring homeowners in by waiving deductibles, and then overcharging their insurance by sending in false information. There’s no gray area here – the TDI states, “That would be fraud. And a contractor who offers to waive your deductible is likely making up the difference by cutting corners or using lower quality products.”
Such concerns arise from Texas’ underregulated roofing market, which doesn’t require contractors to be licensed. As a result, homeowners will encounter misinformation, shady practices, and even outright fraud. That’s why it’s so important to work with reputable contractors who follow legal requirements and ethical practices – such as charging deductibles, using high-quality materials, and following best practices to ensure durable repairs.
We’re Here to Help
Understanding insurance and roof damage in Texas is essential for homeowners. If you have any questions or need assistance with damage, contact DFW Roofers at (469) 751-4018 or schedule an appointment through our online appointment form below.