Schenectady Roofing: Article About Understanding Homeowners Insurance
Anyone who owns a home knows that homeowners' insurance is essential. In fact, if there is a mortgage on the property, chances are the lender requires that the home be covered by a homeowner's insurance policy until the loan is paid back in full. However, even those who own their home will generally protect their real estate investment by taking out a homeowner's insurance policy.
The right insurance policy will depend on the homeowner and their particular situation. Many leading Schenectady roofing contractors are accustomed to working with homeowners and their insurance companies. Sometimes the homeowner has excellent coverage, while at other times they might be surprised to find that what they thought would be covered is not included in their policy. For example, a homeowner who has a roof that is more than 20 years old might not be able to recover damages from their insurance company.
Every insurance policy is different, so it is crucial that homeowners have a thorough knowledge of what is covered in their policy as well as what is not covered. The two main types of homeowners' coverage are actual cash value, or ACV, and replacement value.
The roofing contractors at Ideal Construction of Schenectady can answer any questions you have regarding windows or doors.
An actual cash value policy takes into consideration the number of years expected in the life of a roof. Therefore, an asphalt shingle roof that is 20 years old probably only has 5 or 10 years left before it will need to be replaced. However, a Spanish tile roof that is 20 years old likely has 30 years or more left before replacement would be needed.
The insurance company will take the age of the roof as well as the anticipated number of years left before the roof would need replacing. They will prorate the cost of repairs or replacement based on these figures. This can leave a homeowner responsible for their insurance deductible as well as a big portion of the repair costs. It is important that homeowners understand this and that they are financially prepared to meet this expense if there is damage to their roof.
The other type of insurance, replacement value, offers a much more comprehensive level of protection. However, very few insurance companies offer this type of policy, and, when they do, it is typically very expensive. For those homeowners who do have replacement coverage, the insurance company will pay the current cost to have the roof repaired or replaced. That can be a huge relief for a homeowner who is faced with major roof damage.