Transcript
Llana
Hi. I’m LLlana Tolbert with Lianro Metal Roofs, also known as Roof Lady. In this episode, we’re going to cover what homeowners’ insurance really does and how to best use it when you have a hail storm. And we have the lovely Elizabeth Bryson of Elizabeth Bryson Insurance Group here today to answer questions. Do you want to say more about you and your agency?
Elizabeth
Sure! I’m an independent broker. I’ve been in the insurance business for thirty-five years. And my number one priority in my office is to help consumers when they have a hail storm or any kind of claim because it’s challenging for them. They don’t know what to do or what to expect.
Llana
Yeah. That’s what we find in the roofing side of it is people just don’t know what to expect. And so, one of the things that comes up is the deductible issue. So can you explain to us how deductibles are determined and what people should know about the deductibles.
Elizabeth
Sure. So, there’s two aspects to that. In a lot of cases, the insurance company does determine the deductible because a lot of them require a separate deductible for all perils except wind and hail, and then that’s a higher deductible. It could be a percentage deductible. And what a lot of people aren’t aware of is that percentage deductible is a percentage of the value of their home not a percentage of the value of the claim. So, if they have a five hundred-thousand-dollar home and they have a one percent deductible, that’s five thousand. Some companies have a two percent deductible, so that’s ten thousand dollars out of their pocket. And they aren’t aware of that.
Llana
Well, and that’s something too, and since you’re my agent, we talk about this all the time, is to know the value of your home before you sign up for one of those deductibles. Because, you know, now a six hundred-thousand-dollar home is almost a million dollars in this new market.
Elizabeth
True. And I’ve seen those homes and they have a two percent deductible. So that’s over ten thousand dollars out of pocket.
Llana
Right. So that kind of brings us to we were talking before about mistakes that homeowners make when they’re purchasing insurance. What would you say the biggest mistake is they make.
Elizabeth
And especially as a new homeowner, they’ve never had a home or a policy before, and they don’t understand their coverages. They’re just looking for the cheapest coverage. And at the time of a claim, they’re not going to be happy with that. They don’t understand what their coverage needs to be for their home or for their deductible.
Llana
So, you just need homeowners to ask more questions.
Elizabeth
Yes. Not just to match the number that the mortgage company wants them to be at to qualify.
Llana
Oh yeah. That’s really good. So, just to recap, just really quick. So, ask a lot of questions. Know the value of your home and understand that there might be two levels of deductibles a wind and hail peril, and then, like, a total lost type of event.
Elizabeth
Well, for all other perils, fire, water damage, things like that. That would be a separate deductible. In a lot of cases.
Llana
Oh, Okay. And so then is there an option to lower your deductible if you don’t want to pay the one percent, or is that just kind of how it is?
Elizabeth
It depends on the companies. Some companies that they went to the one percent deductible and you can’t get it any lower than that. So that’s a question to ask your agent for sure and see if that’s available.
Llana
Okay. And, a lot of people say, well, do I have to pay my deductible? And, you know, there are some roofing companies out there that say, oh, well, I’ll cover your deductible. And I always use the example of like a doctor. Does the doctor ever say when you cover your deductible?
Elizabeth
It is insurance fraud.
Llana
Okay.
Elizabeth
It is insurance fraud. And you pay your deductible directly to the roofer. When the work is done. They might want it upfront or they might want it when the work is done. Your deductible is paid right to the roofing company.
Llana
Well, a lot of times, we’ll see that the deductible is taken off of the adjustment. And so, say the claim is fifty thousand dollars the ten-thousand-dollar deductible is taken off right off the top, and then their balance is forty thousand. Is that kind of what you’re saying?
Elizabeth
Yes.
Llana
Okay. And then, the other thing that we get a question about all the time is the actual cash values and the recoverable value. If you want to explain that a little bit.
Elizabeth
Sure. And that’s one thing to watch out for now too. A lot of companies if your roof is a certain age, they will only pay you actual cash value. So, let’s say you have a thirty-year roof and it’s fifteen years old. So, about fifty percent of the life of the roof is gone. Okay. They’re only going to get paid fifty percent, that fifty percent value of the roof. So that’s very important to look at your whole large policy every year at renewal to be sure it hasn’t changed actual cash value because a lot of agents will inform you of that they just expect you to read your policy.
Llana
The other thing we’ve noticed is also the code coverage.
Elizabeth
Yes.
Llana
Because codes are constantly changing. You know, we’re being more and more regulated. So that would be a good time to ask for that too?
Elizabeth
Absolutely. The code coverage. It’s very important to have. I mean, a perfect example is the roof they have that new code. Well, it’s probably three or four years old now with that called for the roofs that they have to have in El Paso County, if they’re up so high in elevation.
Llana
Oh, yeah. Ice and water.
Elizabeth
Ice and water. Yeah. So, it’s not going to be covered on a typical policy unless you have code coverage. But back to what you asked about, replacement cost and actual cash value. So, if you do have replacement cost on your roof and hopefully you do, again, let’s say your roof is thirty years old, and it costs twenty thousand dollars to replace it. They will give you typically about half of the twenty thousand dollars upfront minus deductible, and then once the work is completed, they’ll give you the balance.
Llana
So now another question we get is, do they have to use an insurance approved contractor or our homeowners free to choose who they want to use for their roof.
Elizabeth
And that can vary from company to company. I think most companies now will let you choose who you want to use. A lot of them now if you use their company, they’re going to stand behind it and warranty that work. Okay. So that is one benefit to use their company, but you don’t have to, usually.
Llana
And the other question we get a lot is, well, can I change what I have on my roof? And, so my usually is, yes, the insurance will pay you for what you have, but if you want to upgrade, then that’s a cost out of pocket.
Elizabeth
Yes. Exactly.
Llana
Okay. Does it make sense to combine your, home owners and your auto owner’s insurance together as any benefit to that?
Elizabeth
There is a discount for combining. I always say probably ninety to ninety five percent of the time. It makes sense to do that because of the savings. Okay. Very rarely does it make sense to not put them together? But if it makes sense, to keep them separate. I definitely advise people of that.
Llana
I’ve met some homeowners worry that, oh, I’ve had hail. And so now I have one insurance company and they hail all my else and handle on my cars, does that really make a difference, whether it’s one company or two?
Elizabeth
No. But there are several companies out there, which is a pretty new feature that if you have your auto and home with them and they’re both damaged by [the same] hail [storm], you only pay one deductible.
Llana
Oh, wow. That’s good to know. That’s really good to know. Especially with rising deductibles! Is there anything else that I should have asked you about insurance claims and homeowner insurance, but I didn’t.
Elizabeth
I can’t think of anything right now, but I mean, I’m just going to put a plug for myself. Yes. I I work with my customers. I was thinking about this this morning. I’ve had several claims for hail, home and end auto unless the customer goes to the carrier prior to speaking to me when they call me about a claim, I filed their claims for them. I stay in touch with them. Follow-up with them. I want them to reach out to me if they have any questions. That’s what you pay for insurance for.
Llana
Absolutely. I am a big proponent of an agent that is involved. Yeah. It makes the whole process so much easier.
Elizabeth
Yeah. I’m sure it does for you.
Llana
Yeah. Well, thank you so much for your time. I can say from personal experience, she is an awesome agent. She’s located in Monument Colorado. So, if you have any insurance needs in the area, be sure to give Elizabeth Bryson call. And thank you for joining us for this episode. So be sure to metal up with Lianro Roofing.
