Hail is frozen precipitation, and can range in size from small hailstones the size of frozen peas, to golf ball-sized stones, to even larger stones the size of baseballs. The largest hailstone recorded in the US, according to National Severe Storms Laboratory, was recovered in South Dakota in 2010 and was eight inches in diameter and weighed almost two pounds!
While most hailstones don’t quite compare to that one, hail can cause serious property damage. This is why most basic homeowners insurance policies cover damage caused by wind and hail storms. But because hail storms are very common in some parts of the US and the damage can be repeated and extensive, some insurance companies are making policy changes that could impact homeowners.
Does homeowners insurance cover hail damage?
Standard homeowners insurance does typically cover hail damage, but depending on where your home is located there are some exceptions.
If you live in a region that frequently experiences hail storms, this additional risk might mean that repairing cosmetic hail damage could be exempted by your policy, or you may only be able to file a claim after the damage meets certain conditions.
In other words, in some areas, hail damage presents a higher risk so additional limits and restrictions are to be expected. Restricting coverage for cosmetic damage is increasingly being used by insurers as a means to reduce claims exposure in these risk-prone areas.
Homeowners in high-risk areas should check their policies for cosmetic exclusions. With a cosmetic exclusion, insurance will only pay for repairs if the function of whatever was damaged is impacted.
So, if a hailstorm causes unsightly dents in your siding or roof but does not affect how the siding or roof functions, if your policy has a cosmetic exclusion your claim will likely be denied.
The challenge for homeowners is that sometimes, cosmetic impacts can eventually lead to functional damage. A hail-dented roof may be weakened enough to cause leaks later, making maintenance checks very important.
What is a hail storm deductible, and how does it differ from a standard deductible?
In some areas a basic homeowners policy might have a separate hail insurance deductible. For areas that represent higher risk for certain types of covered perils, this is a way to offer coverage that shifts more of the cost of repair or replacement to the homeowner by separating out the higher risks on the policy, making them subject to substantially higher deductibles, which are typically a percentage of the insured value of the home rather than a fixed amount.
For example, a home insured for $300,000 may have a covered perils deductible of $1,500, with a separate hailstorm deductible set at 3%.
This means if the home experiences a covered event like a kitchen fire that causes $10,000 in damage, insurance will pay $8,500. However, if this same home is hit by a hailstorm that also causes $10,000 in damage, the homeowner is responsible for covering 3% of $300,000—or $9,000—of the cost to repair.
What steps should I take after hail damage?
The steps a homeowner should take may vary depending on the intensity of the storm and the severity of any damage.
- Homeowners should carefully inspect their property for any damage
- Note the date and time of the storm, and document any damage to your home and any structures such as garages, sheds, or fencing
- Take photos of any damaged property as soon as it is safe to do so
- Also take pictures of the hail, using a coin or other common object in the photo for comparison
- Contact your insurance company or agent to discuss how to proceed with filing a claim if your home has sustained hail damage
Even a moderate hail storm can cause damage serious enough to cause real problems. This is particularly true for roofs, which because of their exposure typically will bear the brunt of storms.
Because damage to roofs might not be visible from the ground, you may need to contact a roofing inspector to check for damage. Find a reputable, licensed roof inspector. You can also call your insurance company for a recommendation.
In parts of the country where hail storms are frequent, after a major storm homeowners often report roofing contractors knocking on doors in the neighborhood offering to inspect roofs for free. These may be attempts to scam insurance companies, by claiming a full replacement roof is needed and then doing subpar work, or disappearing altogether.
It is generally not advisable to engage with any contractors that offer roofing services by going door-to-door.
Will filing a claim for hail damage increase my insurance rates?
Filing a claim for hail damage might increase your insurance rates, but as with so many things when it comes to insurance—it depends.
Some homeowners report a slight increase in their homeowners insurance rates after claiming hail damage. This is usually attributable to the loss of a “no claims” discount. A no-claims discount is exactly what it sounds like: a discount on your premium for not filing any claims. When you file a claim, the discount is lost.
However, if the hail damage claim resulted in a full replacement of an older roof, the loss of the no-claims discount may be partially or fully offset by a discount for having a new roof. Having an older roof can translate to higher rates, so replacing the roof with a new one can mean lower premiums.
Know what is in your homeowners insurance policy to avoid being surprised by discovering that you have a separate hail storm deductible. If you have questions, contact the experts at Rate Insurance. They can help you to find the right coverage to protect your home, with clear explanations of policy details.
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