At some point, we all hear the “insurance horror stories,” myths, and what will and will not be covered. Now’s the time to clear the air. Knowing what your policy covers and the ins and outs of insurance shouldn’t be hard.
At Henry Insurance, we strongly believe in keeping our clients well-informed and up-to-date on all aspects of their insurance. To help provide some insight, we have curated a list of our answers to your most pressing insurance questions.
Is it true insurance covers wear and tear on your roof? Will insurance cover everything if your roof faces severe damage during a storm?
Despite the common misconception of what insurance will cover when it comes to your roof, insurance is for sudden or unforeseen perils, which means that normal wear and tear or maintenance is not covered.
If someone is looking to replace or repair their roof for regular maintenance, it is the homeowner’s responsibility to cover the costs.
If your roof is 10+ years old, is it true insurance companies only insure the book value of the roof? Do some not even write it?
The loss settlement for the roof depends on the policy and the insurance company. Although it is more common to see new policies that offer Actual Cash Value loss settlements on roofs over ten years, it is possible for a person to have a replacement cost loss settlement for a 10+-year-old roof.
Another common loss settlement for roofs older than ten is a scheduled loss settlement. The carrier will replace up to a certain percentage of the roof’s replacement cost, depending on its age. The older the roof is, the lower the percentage gets.
What exactly does my insurance cover for my roof?
Roof insurance coverage varies greatly from case to case. Although we can’t exactly say what is covered by your roof insurance, we do know that it covers sudden and unforeseen perils such as storm damage and accidents.
If your roof is under ten years old, does insurance cover replacements?
Similarly to what we said before, it depends on the insured’s type of policy, selected coverages, and available coverages. If the insured has a replacement cost loss settlement on their roof and the damage requires a total replacement, then the carrier will replace the roof no matter its age.
In contrast, if you have an Actual Cash Value Roof loss settlement, your roof will not be replaced at replacement cost.
If you let your policy renewal period pass and your policy cancels, can it simply be reactivated? What happens when you let your policy renewal period go by without renewing it?
The short answer is that you’ll have a lapse in coverage. Depending on your insurance company, the cancellation can be rescinded with no lapse if you make your renewal payment within a certain time frame.
However, if you do not renew your policy in time, it will most likely have to be rewritten as a new policy.
How long does it take before your policy cancels? Is it the day after your renewal period? Do insurance companies warn people of their potential policy cancellation?
The timeline between the end of your renewal period and the cancellation of the policy depends on the insurance company. Some have extended grace periods, while others do not have a grace period at all. Long before your policy is at risk of being canceled, around 30 days, your insurance company will send a renewal offer through mail, email, or both.
If you believe you have yet to receive a renewal notice within 30 days or at all, you must contact your agent. Your contact information may be incorrect in the system and needs alterations so that you receive correspondence from your insurance company and agent.
If a person’s mortgagee pays the premium, they will receive the invoice. If the insured pays the premium, they will receive their invoice and all subsequent billing reminders.
What are the risks of having your policy canceled?
Beyond potentially having to rewrite a new policy, if you have a mortgage, you risk being force-placed. If you are force-placed, it means the mortgage company will get a policy to cover the remainder of the principal of the loan at that time, and you will have to pay for that policy. Forced placed policies are exorbitantly expensive and only protect the mortgage company’s interests, not yours. In the event of a loss, a force-played policy does not protect anything that belongs to you in your home.
If you do not have a mortgage, you risk not having coverage at the time of loss. Although this may not seem bad, it can be catastrophic as it takes a massive amount of money to effectively self-insure a property.
If my policy cancels, what are the next steps I should take?
Firstly, it is essential to note that your insurance company must notify you in advance of any intent to cancel. Therefore, your policy won’t cancel itself randomly or without previous notice.
Once your agent receives the cancellation notice, they will begin to find out what caused the cancellation and whether it can be resolved before it goes into effect. Most often, cancellations occur because payments have not been made.
If your insurance company uses direct-bill, the agent cannot remind you about making payments. (Direct billing means the agency is not involved in billing matters as the insurance company communicates directly with the insured regarding payment, and the insured directly pays the insurance company.)
Agents try to steer clear of getting involved with direct billing because it leads to massive E&O issues. You must remain on top of the correspondence you receive directly from the carrier, especially if it involves billing.
In the instance where the policy cancels due to non-payment, you need to call your agent immediately if you have one. If you do not go through an agency and instead work with a carrier, you must contact them to inquire whether they can reinstate the policy. You must search for a new policy immediately if they can not reinstate the current one.
Whether you are looking for coverage for your roof, home, auto, boat, or life, knowing the details revolving around your policy is essential.
At Henry Insurance Service, we are not trying to sell insurance and leave you in the dust. Service at Henry Insurance means you are well informed of your policy, kept in the loop for any changes or updates, are put first, and have peace of mind knowing you don’t have to worry about your insurance.
Contact us today to get started on your journey with Henry Insurance and discover what true service looks like.
