Davis Roofing: Article About Acv Versus Replacement Cost For Roofs
Homeowners carry insurance to help protect their investment. Whether their home sustains damage from a fire, tornado, hail or falling debris, the right insurance policy can help ensure they have the financial resources to fix their roof. Of course, choosing coverage for a roof can be a little confusing, especially when there are so many options available.
Every day, Davis roofing contractors help homeowners deal with a variety of roofing problems. Many times, these problems are covered by insurance; however, there are also many catastrophic roof problems that are either not covered or not completely covered by the homeowner's insurance policy. It is important for homeowners to understand the difference between various policies so that they can make an informed decision regarding the right protection for their roof.
One of the first things a homeowner needs to realize is that not every insurance company is going to offer the same type of coverage. When comparing policies, it is imperative that one know the difference between ACV (Actual Cash Value) and Replacement Coverage as well as the deductible and the specifics regarding what will be covered. Some roofs will not be covered because of their age.
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Other times, a roof might not be covered because of its condition, the fact that it's been reroofed or because of what caused the damage.
Damage from a house fire might be covered, but hail damage to a metal roof might be the owner's responsibility. Additionally, a homeowner with an Actual Cash Value policy might discover that even if their roof is damaged by a covered event, the amount of money they receive from the insurance company can be a lot less than they'll need to repair the damages. ACV policies prorate insurance payments based on the remaining life left in the roof. So, for example, a roof that has a 30 year warranty, but is already 15 years old, would be prorated at half the value. This type of coverage can often leave the homeowner with insufficient funds to cover the necessary repairs for their roof.
Some companies will offer replacement value coverage, but this type of insurance policy will be much more expensive than a typical ACV policy. Another important factor that homeowners need to consider is their deductible. Regardless of which type of policy the homeowner has, they will need to pay a deductible before their insurance company pays for any damages. Deductibles can vary widely, depending on the needs of the homeowner; however, the higher the deductible, the less the policy will cost.