First, let’s get the insurance question out of the way: Will my homeowner’s insurance cover my roof leak?
Since Arizona is not subject to annual hail or storms like Texas, Oklahoma or Kansas, most Arizona property owners have little knowledge of what is covered by their insurance. Many are under the impression that their insurance will cover roof repair or roof replacement.
Obviously, insurance policies differ between insurance companies, types of coverage, and individual states’ laws. Every homeowner should understand what their Insurance actually covers.
There are two basic coverage’s on your policy that you should be aware of in your homeowner’s policy.
Actual Cash Value (ACV)
Actual Cash Value (ACV) is computed by subtracting depreciation, which is based on age and condition of your roof– from the roof replacement cost.
Replacement cost is another method of valuation. An example would be as follows: You purchased a new roof in 1990 for $6000. The
replacement cost of that roof’s value in today’s market is $10,000. Actual Cash Value (ACV) insurance would only pay the Actual Cash Value of your roof at the time of loss. The ACV would be the replacement cost (at today’s prices), less depreciation. In this example, the insurance company may pay an
estimated cost of $4,500 for your new roof less your deductible.
Replacement Cost Value (RCV)
Replacement Cost Value (RCV) is the amount that an insurance
company would pay, at the present time, to replace your roof. In the example above, the roof replacement cost is $10,000. The insurance company would pay out the value of the roof in today’s market of $10,000, less your deductible. Most likely, you have Replacement Cost Value type coverage; which entitles you to have your roof replaced with like kind and quality when it is of equal or better condition then it was before the damage occurred.
TILE, SHINGLE, FLAT, FOAM it doesn’t matter most Phoenix roofers will tell you, “It’s time to remove the old roof and install a new one” One of the biggest fears is really knowing if your roof can be repaired or if you have to replace it. There will come a time when you have to decide what to do about your roof, it may be looking a little deteriorated and may have some leaks. Most individuals dread this decision and put it off a much as they can, “out of sight, out of mind”, sometimes until they have no other choice and they have roof failure. At this point most property owners are fearful of calling a roofing contractor.
By that time costly damages may have occurred and roof replacement is the only option. A timely roof repair or even a maintenance program would have protected the building. The extent of the roofing problems and the age of the roof are major factors that can help you decide on what course of action to take.
Can I repair my roof?
The last thing you want to hear when it’s raining is “You Need A New Roof”! Lets face it; most people don’t want to spend capital expenses on a new roof, especially if you can get more years out of your existing one. Getting a roofing contractor to show up is difficult enough, let alone getting three bids on a new roof, then choosing the right contractor. Wouldn’t it be better to really know what the condition of your roof is and what your options are?
Learn to be ROOF SMART: When it comes to real estate, roof issues are usually ignored, until they leak. If you are having roofing issues, problems, leaks, etc. After calling your favorite roofing contractor call a roofing contractor that specializes in roof inspections and knows how to provide a written roof report with OPTIONS…. Know what is going on, know your options about your roof prior to taking the word of a hungry roofer or slick roofing sales guy.