Three Insurance Terms Homeowners In Edmond and Midwest City need to know when shopping for Homeowners Insurance

Finding a great homeowners policy, with great coverage, and a great insurance agent takes a lot of time to find. When planning on changing insurance coverage, consider your roof.

There is more to an insurance policy than only price. Check each policy to see what coverage or endorsements you can add to get the most out of your policy. Here are 3 insurance terms, and how they relate to your roof.

Deductible

The percent or dollar amount of a loss settlement a homeowner bears as self insured

In layman terms, the amount a homeowner agrees to pay after the insurance company has for the damage.  About the year 2010, insurance companies moved from a fixed dollar amount deductible (usually $500-$1000), to a percentage deductible that is based off of the county assessors valuation of your property.  

RCV – Replacement Cost Value

Replacement cost value is the cost of replacing property with property of like kind and equal quality or effectiveness

Example: A hail storm totals a 30 year architectural laminate roof that is 10 years old. Insurance estimates the Replacement Cost to be $12,000. The insurance company will pay to replace the $12,000 roof, less your deductible. If your home is worth $200,000, a 1% deductible would amount to $2,000. Here is the example.

The great thing about a Replacement Cost Value policy, is you will recover the depreciation after the roof has been replaced

ACV – Actual Cash Value

The actual cash value is the replacement cost value, less depreciation for physical wear and tear.

Definition source: https://www.merriam-webster.com/dictionary/actual%20cash%20value

The example is the same as the one above, with one exception.

Example: Example: A hail storm totals a 30 year architectural laminate roof that is 10 years old. Insurance estimates the Replacement Cost to be $12,000. The insurance company will pay to replace the $12,000 roof, less your deductible. If your home is worth $200,000, a 1% deductible would amount to $2,000. Here is the example. 

 With an Actual Cash Value policy, is you will not recover the depreciation after the roof has been replace. The homeowner is responsible for the other $6,000 that it would cost to replace the roof. The advantage to this policy is the lower premium cost.

At Altru Roofing, we are experienced roofing contractors in Edmond (and roofing contractor in Midwest City ) who can help navigate the insurance claims process. If you are wondering if you need to make a claim, Altru Roofing and Construction offers free inspections in Midwest City, and free inspections in Edmond as well. Connect with us today for your roofing needs.