Here’s What You Need to Know:
At Evergreen, we believe it’s extremely important to facilitate good relationships with insurance companies. We spend a lot of time connecting with agents and adjusters, so we can stay informed on how they handle roof claims. This enables us to better communicate with customers and guide them through the claim process, when they incur damage to their roof.
Each Kentucky homeowner has unique coverage, but in the past, many insurance policies have provided full replacements for damaged roofs, no matter the age of the roof. However, starting in 2024, that’s about to change.
Important changes to Your Roof Insurance
Due to the increase of destructive weather in our area, most notably the March 2023 wind storm, insurance companies have changed the way they write roof coverage in Kentucky. It’s common for insurance companies to raise their rates after paying out a large amount of storm claims in a particular area. However, this time the changes aren’t stopping there.
2023 was a record-breaking year for insurance payouts in Kentucky. For example, Kentucky Farm Bureau has paid out nearly half a billion dollars in claims due to the March wind storm alone. This is catastrophic territory for insurance companies, which has resulted in the need for significant changes going forward.
Kentucky insurance companies are not only raising rates to offset these monumental payouts. They are making significant structural changes to how they cover your roof. So what does this look like?
Well, in the past, it has been possible to have a scenario where your twenty year old roof gets damaged by wind or hail, and your insurance coverage provides funds for you to get a brand new roof. All you had to do was pay your deductible, which could be as low as $1000 or $1500. Going forward, even the best, most expensive insurance policies won’t work like this. After the damage from 2023, insurance companies can’t afford to write policies like this in Kentucky for the foreseeable future.
Two Kinds of Policy Changes
Insurance companies are changing the structure of their policies in two major ways. The first kind of policy change is a provision for a special wind and hail deductible. This provision is already present in some of the more cost-effective insurance policies, but it’s going to be far more standard in 2024 and on. How does it work?
Well, if you incur damage to your roof via wind or hail, and your insurance company approves your claim, they will pay for you to get a new roof. However, you will be responsible for paying a much higher deductible. Rather than paying $1000-$1500 out of pocket, you’ll have to pay closer to $5,000-$6,000 or even more.
The second kind of policy change factors in the depreciated value of your roof. Starting in 2024, some insurance companies will account for the depreciation of roofs that are seven years old or more. If a hail storm damages your roof in 2024 or 2025, your insurance will payout what your roof was worth at the time of the storm. So if your roof is 15 years old, they’ll give you what a 15 year old roof is worth, rather than the amount to pay for a brand new roof. This change will more closely reflect the way car insurance works. If you total your 2001 Honda Pilot, your insurance company will give you the amount of money a 2001 Honda Pilot is worth. They won’t give you money to buy a 2024 Honda pilot.
What DOes this mean for me?
If you don’t have a brand new roof, then you should get your roof inspected as soon as possible. Insurance companies have replaced a lot of roofs that were damaged in 2023, but there’s still a lot of damage out there. You have up until 2 years after the date of the storm to file your claim and get your roof replaced.
If you file a claim in 2024 for damage that occured in 2023, your insurance company will payout your claim based on your 2023 policy. This could be the difference between getting a new roof now for $1000 or getting one down the line for $5,000 at best or near full retail price at worst.
The bottom line is: insurance is important. Make sure you know your policy and how to use it. We want you to get the most out of your coverage and your insurance agent does too. Contact your agent to discuss the changes to your policy, and contact us if you need to get your roof inspected. We’ll give you a free evaluation. You can reach out to us through the link below.