Resource - What if my deductible is too high to file a claim?

Nobody purchases home insurance with the hope that they will need to use it. Unfortunately, many homeowners wait until hail or other weather-related damage has already occurred to find out that their current insurance deductible is too high. When this happens, out of pocket expenses for work can become costly. Many may not be able to afford the roof replacement they desperately need.

Don’t wait for severe weather to impact your home. Now is the time to examine whether or not your insurance policy is right for you. 

Help! My deductible is too high!

If you discover that your home insurance deductible is too high, consider changing your policy to something that better fits your budget. Homeowners with an active policy can make changes to their deductible at any time. A simple call to your insurance provider should be enough to discover whether or not a lower deductible plan is offered. 

But before you call, Hailscale recommends you’re armed with some helpful knowledge. 

RCV vs ACV Insurance Policies

There are two types of insurance policies on the market–an RCV policy, and an ACV policy. This stands for Replacement Cost Value and Actual Cash Value. Some insurance plans will refer to ACV as “market value”. Understanding the difference between these two types of coverage will help you find the best policy for your home. 

An RCV policy is a policy that covers the full replacement cost from hail damage or weather-related damage to your home. This means that your policy will cover the full cost of replacing any damages to your roof, siding, and windows. Coverage from an RCV plan will still apply even if your current roof or siding is very old, or nearing the end of its life. 

ACV plans, on the other hand, will only cover the actual cash value of your roof. If your roof is very old, then the ACV or “market value” will be lower. Additionally, ACV is impacted by more than just the condition of your roof. ACV can rise and fall due to factors such as proximity to good schools, crime in your area, and more. 

This means there is a good chance that an ACV policy will not cover the needed replacements to restore your home’s roof after significant hail events. 

Should I get an RCV or ACV policy?

Hailscale recommends that homeowners make sure they are covered by an RCV insurance policy. 

RCV policies give you the best protection, and make sure that a roof replacement is covered despite the age of your roof. Homeowners may find that ACV plans do not cover full roof replacements. 

Again, when dealing with exterior, weather-related damage, make sure to ask your broker about a low deductible, RCV insurance plan for your home. 

Can I retroactively lower my deductible?

No, you are not able to retroactively lower your insurance deductible. Once storm damage has occurred, your current policy and deductible will be used to address that hail damage. This is why being proactive matters. Storms can happen when you least expect it. You never know when your home will be impacted by severe weather events.

Don’t get caught paying out of pocket for roof damage caused by a hail event. Instead, call your insurance agent and ask about a lower deductible plan today. 

What if I need to switch insurance providers?

If you call your current insurance provider and are not satisfied with the policies offered, it may be time to switch providers. For homeowners who have had the same provider for years, the prospect of switching can be intimidating. Thankfully, re-evaluating your insurance provider isn’t as hard as it seems.

To switch insurance providers, start by reviewing your existing home-insurance policy. Identify the major issues. Maybe your deductible is too high, or your provider is not offering you a plan that provides the RCV coverage you need. Once you know what coverage you are looking for, you can begin gathering quotes. Popular and highly regarded providers include companies such as State Farm and USAA. 

Be sure to shop multiple home insurance providers to find the company that is right for you. Good insurance companies should work with you to ensure that there are no gaps or overlaps in your coverage. Once you have settled on a provider and policy, you can cancel your old plan.

Make sure that you cancel your existing policy strategically. Companies differ on how premiums are treated upon cancellation. While some companies may refund you the remainder of the premium, others may introduce additional fees. 

At the end of the day, the confidence and comfort of being fully protected by your home insurance is worth the work of shopping for a new provider. 

Be Prepared–Access Free Hail Monitoring with Hailscale

Don’t let hail damage catch you off guard. Make sure your home insurance policy is doing all it can to protect you. Once you have found a great home insurance policy, sign up for Hailscale’s free hail monitoring service. Knowing when your roof has been impacted by a hail event is critical in preventing further damage and deterioration of your roof. 

Hailscale’s hail monitoring service is a no cost way to know when your home is impacted by weather-related damage. When a hail event occurs, contact our local team of experts to schedule a free inspection and file a claim.