There are common changes in today’s home insurance market. These changes are all centered around reducing coverage to the exterior of your home and raising deductibles. Home Insurance companies are trying to limit their exposure, which means the insurance company wants to pay less if your property is damaged by wind or hail.
If your home is damaged by hail the insurance company does not want to pay for the siding or roofing of your home that is not damaged. In order to do this, the insurance companies have created language in their insurance policy which removes coverage for the Undamaged portion of your roofing and siding. They have added an endorsement which will cover the undamaged materials. They are charging more for this coverage endorsement. If you do not add this endorsement, the insurance company will not pay for the undamaged siding or roofing materials. Not every home insurance company has adopted this limitation. But, many have, so it is important to review your home insurance on renewal or ask your agent if such an endorsement exists on your home insurance policy.
Some Home Insurance companies are creating a separate wind/hail deductible which is higher than your All Perils deductible. What does this mean? This means that if you are damaged by wind or hail, you will have to pay your wind/hail deductible. This wind/hail deductible is set higher than your all peril deductible, which are often $1500, $2500 or $5000. How does the deductible work? You pay the deductible amount after a loss before the insurance company pays the claim. If your wind/hail deductible is set at $2500, than you pay $2500. The most common way that this deductible works is the insurance company will deduct $2500 from the estimate of your insurance repairs.
If you have had your home insurance for a couple of years, you most likely did not start your home insurance policy with these limitations and changes. Review your insurance policy to determine if you have adequate coverage should you need to file an insurance claim.