Your home insurance policy includes a deductible- an amount you agreed to pay before the insurance will pay anything on a claim. Decades ago, these deductibles were as low as $250 or $500 but today, they’re anywhere from a set amount of $1,000 or $5,000 to a percentage of 1% or 5% of the insured value of your home. Typically, the higher your deductible, the lower your premium because you, the insured, is taking on more of the risk rather than transferring that risk to the insurance company. A common misconception is that a homeowner can “stack up” losses until they really need a repair and will file all damages under one claim, subject to one deductible. Your policy holds two deductibles- “Wind or Hail” and “All Other Perils”- therefore, if the cause of a loss is water and the cause of another loss is hail, you are subject to two separate deductibles.
After hail storms in North Texas, you’ll see some roofing contractors offering to “waive”, “eat”, or “cover” a home insurance deductible, or install a new roof at “no cost to you”. Please be aware that “covering” a deductible is insurance fraud if a contractor and/or homeowner falsify an invoice, a proposal, a loss summary or any other pertinent documents relating to the payment of an insured loss in order to circumvent the payment of a deductible.
If you’re not sure what your deductibles are or what they apply to, give us a call and we’ll be happy to review you coverages with you.