Recent massive hail storms have hit Texas and many owners find they have very poor insurance. I know the Standards exclude insurability and determining age of the roof. I even restate it in my report. However it seems many owners have no clue and when they get hail struck they get screwed.
This is language I am putting in my report. Its too long and needs to be written by someone more skilled than me. Feel free to rewrite it and post.
*Important: Research your property casualty insurance (home insurance) carefully. Many insurance providers offer actual cash value (ACV) instead of replacement cash value (RCV) policies. ACV means they deduct their estimate of depreciation from the settlement and this shifts more cost to you. Google “what is ACV versus RCV” and understand the differences. If a hail storm destroys the roof you might be paid only the depreciated value less the deductible. This can be a significant expense. Additionally, many providers include policy limitations that exclude their opinion of damage to cosmetic items (dented gutters for example). Be aware of your deductible amount, it can be expensive. Lastly, know that some companies will cancel coverage if they think your roof is more than 15 to 20 years old (a variable number). All of these considerations can mean your roof may have very little insurance coverage. This home inspection does not determine the age of the roof or its insurability. You should have your insurance company approve the roof to their underwriting standards and be aware of the policy language. Also be aware that they can change policy language and coverage; do not take them for granted.
End of statement
Here is an example.
14 year old comp roof 50 squares. In Texas the standard deductible is 2%. Home is valued at $500,000.
20,000 Replacement cost
- 9,000 depreciation
- 10,000 deductible
Means you get a check for $1,000. Sure the numbers can vary a bit but the point is you do not want the buyer coming back to you angry.