Homeowners are seeing the roof deductibles rise on their home insurance policies, and it’s making an impact. Many of our clients have asked why this is happening and how it affects their insurance. Understanding the factors behind increasing roof deductibles can help you make better decisions to keep your largest asset protected.
What Are Roof Deductibles?
A roof deductible is the amount homeowners must pay out of pocket for roof damage before insurance coverage kicks in. In many policies, roof deductibles differ from general home (or “all peril”) deductibles, especially in areas like Greater Cincinnati that are prone to severe weather.
Why Are Roof Deductibles Increasing?
Rising Repair Costs
Roofing materials have become more expensive in recent years due to supply chain issues, inflation, and labor shortages. Insurance carriers adjust deductibles to manage the higher costs of repairs and replacements.
Increased Storm Damage Claims
More frequent storms cause more roof damage. Hail, wind, and hurricanes are becoming common, especially in certain regions including Ohio. Insurance companies face growing numbers of roof-related claims. Higher deductibles help them manage this increased risk and prevent large premium hikes.
Increased Claim Activity
Insurers adjust policies to manage financial risk. As roof damage claims increase, they may impose higher roof deductibles. This helps insurers avoid large payouts while keeping premiums competitive for homeowners.
State Regulations and Local Policies
In some states, regulators allow higher deductibles for roof damage. These rules help maintain financial stability within the insurance market. They also encourage homeowners to better prepare for severe weather events.
What Does This Mean for Homeowners?
Higher roof deductibles mean homeowners must pay more out of pocket if their roof is damaged. Understanding your deductible is key. Review your home insurance policy regularly to stay informed about any changes.
How Can Homeowners Protect Themselves?
- Perform Regular Roof Inspections
Routine maintenance is part of being a homeowner and can prevent significant roof damage. Early detection of small issues will save you money on repairs and lower your risk of a major claim.
- Increase Your Overall Deductible
Consider raising your overall home insurance deductible to lower your roof deductible. This can be a cost-effective option if you’re comfortable with higher out-of-pocket expenses.
- Speak to Your Cincinnatus Advisor
At Cincinnatus Insurance, we’ll shop it out so you don’t have to! As your Independent Insurance Agency, we can shop your policies with 10 carriers in the preferred market to compare different home insurance policies to find one with a reasonable roof deductible. Different insurers offer varying terms, and you may find a more suitable option. Depending on your personal situation, we can give you the best advice based on your roof age, material, and other various factors.
- Consider a Roof Replacement
If your roof is aging, consider replacing it before severe weather hits. Using insurance to pay for a new roof is a thing of the past. Think of it like getting new tires on your car: a new roof is just standard maintenance for your largest investment. After all, a new roof may qualify for lower deductibles or discounts with some insurance providers.
Conclusion
The increase in roof deductibles is tied to higher repair costs, increased storm damage, and the changing insurance market. Stay informed about your coverage and consider options- it is critical to protect yourself financially. Regular maintenance, relying on a trusted insurance advisor, and proactive roof management can help mitigate the impact of these rising deductibles.