Wind/Hail Deductibles and Roof Schedules: What You Need to Know

Over the past few years, insurance carriers have increasingly implemented wind/hail deductibles and roof schedules in homeowners insurance policies. These changes are a response to rising claims costs due to more frequent and severe storms. U.S. severe convective storm insured losses totaled just under $40 billion in the first half of 2024, with four convective storm events generating insured losses totaling nearly $15 billion in that period alone. This comes on the heels of a reported $60 billion in losses for convective storms in 2023, nearly double the losses from 2022. However, this issue isn’t new. Between 2001 and 2021, insurers covered almost $450 billion in losses related to convective storms.

What Are Wind/Hail Deductibles?

A wind/hail deductible is a separate deductible that applies when your home sustains damage from windstorms, tornadoes, or hail. Unlike a standard homeowners deductible (which is usually a fixed dollar amount), wind/hail deductibles are often expressed as a percentage of your home’s insured value.

For example, if your home is insured for $400,000 and you have a 2% wind/hail deductible, you would be responsible for paying the first $8,000 of any wind or hail-related claim before your insurance kicks in.

Why Are Carriers Implementing These Deductibles?

Insurance companies have seen a dramatic increase in wind and hail damage claims, leading to higher costs across the industry. To continue offering coverage while managing risks, many carriers have:

• Introduced percentage-based wind/hail deductibles
• Increased minimum deductibles for wind/hail events
• Shifted policies from “all-perils” deductibles to separate wind/hail deductibles

What Are Roof Schedules?

A roof schedule is a provision in your homeowners policy that determines how your roof is covered based on its age and condition. Traditionally, insurance policies covered roof damage at full replacement cost. However, many insurers are now moving to depreciation-based reimbursement for older roofs.

• Newer Roofs (0-10 years old): Often covered at full replacement cost.
• Older Roofs (10+ years old): Coverage may be prorated based on age, meaning you may receive only a percentage of the replacement cost.
• Very Old Roofs (15+ years old): Some policies may cover only actual cash value (ACV), significantly reducing the payout for repairs or replacement.

The Growing Issue of Hail Damage Fraud

Unfortunately, as storm activity has increased, so has fraud related to hail damage claims. Unscrupulous contractors and roofing companies have taken advantage of homeowners by:

• Soliciting unnecessary roof replacements – Some contractors go door-to-door after a storm, claiming your roof has significant hail damage when it may not.
• Encouraging fraudulent claims – Some unethical companies promise to “waive your deductible” or offer to cover part of your claim to get business. This is insurance fraud and could result in policy cancellation or legal action.
• Exaggerating damage – Some contractors manipulate reports or even cause damage intentionally to justify an insurance claim.
• Storm-chaser scams – Out-of-state roofing companies often flood storm-affected areas, complete subpar work, and then disappear, leaving homeowners with faulty roofs and no recourse for repairs.

How to Protect Yourself from Fraud

• Get a professional, independent inspection – Call The Horton Group before filing a claim, have a trusted, local roofing company inspect your roof for legitimate damage and by all means, don’t sign any contract with a door-to-door roofing solicitor.
• Be cautious of door-to-door sales tactics – Reputable contractors don’t pressure homeowners into unnecessary repairs or have them sign over their rights.
• Understand your policy – Know what your deductible and roof coverage entail so you can make informed decisions.
• Report suspicious activity – If you suspect fraud, report it to your insurance carrier or the state insurance department.

What You Can Do

• Review Your Policy: Understand your deductible structure and how your roof is covered.
• Consider Roofing Updates: If your roof is aging, upgrading it before damage occurs can improve your coverage options.
• Ask About Policy Adjustments: Some insurers offer options to reduce wind/hail deductibles for an additional premium.

Final Thoughts

Changes in insurance policies are designed to balance affordability with the increasing frequency of severe weather events. While wind/hail deductibles and roof schedules may seem like new hurdles, understanding them now can help you plan ahead and make informed decisions about your coverage.

If you have questions about how these changes affect your policy, reach out to our team. We’re here to help you navigate these adjustments and find the best solutions for your home insurance needs.