What You Need to Know About Roof Replacement Deductibles

Understanding the financial aspects of a roof replacement is crucial, especially if you’re going to use your insurance to cover the cost. Navigating through the complexities of a roof insurance claim can seem daunting. But with the right roofer, you can experience a seamless process and get a new roof in no time.

In this post, The Great American Roofing Company discusses one aspect of roof insurance claims you should know about — the deductibles.

What Are Roof Replacement Deductibles?

Deductibles form a key component of your roofing insurance policy. They are the amount homeowners need to pay out-of-pocket toward the cost of their insurance claim before the insurance kicks in. For instance, if the total roof replacement cost is $8,000 and your deductible is $1,500, you will pay that amount directly while your insurance company is expected to cover the remaining $6,500.

Are Contractors Allowed to Cover Your Deductible?

When selecting a roofing company, you might come across contractors offering to cover your deductible through discounts or other incentives. However, this practice is not legal in all states and could potentially involve insurance fraud. It is always recommended to keep discussions regarding your insurance policy and deductibles strictly between you and your insurance provider.

Are Deductibles Eligible for Tax Deductions?

Another factor to consider is the potential eligibility of your roof replacement deductible for tax deductions. Be sure to consult a tax adviser to determine if you can save money on your taxes by deducting the deductible associated with roofing work on your property.

Extras and Upgrades

Make sure you’re aware of the extras or upgrades that are not covered by your insurance. If you opt for higher-quality materials or additional features beyond what your insurance covers, these costs will be added to your deductible.

All Peril Coverage

Insurance policies usually cover specific causes of damage, known as perils, which may include common issues such as hail and wind. Most policyholders have an “all peril” coverage, but it’s essential to thoroughly review your policy to understand if multiple deductibles apply or if a single deductible covers all potential types of damage.

The Great American Roofing Company is knowledgeable about the insurance process for roof replacements, so we can guide you through your project and ensure a hassle-free experience. Call us at (201) 825-2955 or complete our online form to schedule a consultation.