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Is Hail Damage Insurance Included in a Home Insurance Policy?

hail-damage

Your home is covered against wind and hail damage, right?

It seems like the answer to that question should be obvious, but for many homeowners, it’s not.

When nasty wind gusts and sheets of hail start pounding your house, you are sent running for shelter. You need shelter not only from the storm, but also from the realization that your coverage might not protect you as well as you expect.

Wind and hail damage coverage is not as straightforward as you might think.

  • Did you know that some policies exclude this type of coverage?
  • Did you know that policies with hail and wind damage coverage don’t always provide the full replacement value for the damage caused by the storm?

Hail damage insurance is not always included in your policy. Even when it is, there are certain variables that might reduce the amount you receive in your settlement. To stay protected, it’s vital that you have a strong understanding of what’s covered and what isn’t in your insurance policy.

Understanding Wind and Hail Damage Insurance Deductibles

The deductible for wind and hail damage is different than the deductible you have in place for all other peril. The amount you pay when disaster hits depends on how the damage occurred.

Your deductible for wind and hail damage varies depending on your policy. Here are the ways it’s calculated:

  • Based on a percentage of your home’s value OR
  • Using a flat fee (usually $1,500)

These deductibles are usually different than the deductible you will have to pay for damage from fire or flood. It’s important to be aware of them so that you’re not caught by surprise after a storm.

Knowing Your Settlement Options

Once you’ve met your deductible, your insurance kicks in. Depending on the type of hail insurance policy you have in place, you will receive a certain amount of money to repair the damages.

This catches many homeowners by surprise.

There are two types of settlement options available to you. These include:

  • Actual Cash Value (ACV). This type of settlement policy gives you the actual cash value for your home. Taking the amount of depreciation into account, you could receive quite a bit less than you anticipate.
  • Replacement Cost. The replacement cost covers the total amount you will need to replace the damaged areas of your home. If your roof is damaged, you will get the full cost needed to replace the cost of your roof.

A replacement cost insurance policy is significantly better. With this policy, you do not have to spend more money beyond your deductible to replace the parts of your home that the storm damaged. This is especially important if you made recent upgrades to your house.

How You Can Stay Protected

The first step toward protecting your home and family is to find out if you have wind and/or hail damage insurance included in your policy. Talking to a Missouri insurance agent will help you understand your deductible and what’s included in your policy.

Once you know what you have, consider the type of coverage. Is it time to make a switch from ACV to replacement cost? Talk to your insurance agent to discuss the pros and cons for your situation