Rental Property Investor · Tampa, FL · Member since 2014 · 55 posts · 12 votes
Should I contact the insurance company? I just received a call from my PM. The tenants reported a roof leak and it’s still raining. The PM recommends I call the insurance company tonight if possible. The property is in Georgia and is due to receive more heavy rain on Wednesday as the hurricane that’s in the gulf moves across the US and toward the rental. I found out during a hurricane a couple years ago that the deductible goes up to a percentage of the home’s value during a named storm, so my gut says I should contact the insurance company. Is there any emrsason I should wait? I don’t know the extent of the issue at the moment. The tenants are still in the home. Does rental insurance usually cover any costs associated with the tenants if they need to leave?
Find a roofer who can provide a temporary fix such as placing a tarp over the damaged area until the weather allows for a better assessment. If you end up claiming it on insurance, this cost will be covered. Insurance companies want you to be proactive to limit the amount of damage that occurs.
Have a contractor assess the damage inside and out and provide you an estimate. Compare this to your insurance deductible, which can be high near the coast and, as you mentioned, can be higher during a named storm.
One wind claim during a catastrophic event should not cause your insurance premiums to go up, but if you have had multiple claims in the past 5 years, the frequency of your claims could cause an increase.
The reason I do not advise you to call the insurance company first is that it will be entered as a claim on your policy, even if you ultimately do not receive any money from the company.
I'm curious about this too. Even if the roof repair is covered by insurance, is it best to avoid it for smaller things to avoid increased insurance premiums? What's the threshold for filing an insurance claim?
Find a roofer who can provide a temporary fix such as placing a tarp over the damaged area until the weather allows for a better assessment. If you end up claiming it on insurance, this cost will be covered. Insurance companies want you to be proactive to limit the amount of damage that occurs.
Have a contractor assess the damage inside and out and provide you an estimate. Compare this to your insurance deductible, which can be high near the coast and, as you mentioned, can be higher during a named storm.
One wind claim during a catastrophic event should not cause your insurance premiums to go up, but if you have had multiple claims in the past 5 years, the frequency of your claims could cause an increase.
The reason I do not advise you to call the insurance company first is that it will be entered as a claim on your policy, even if you ultimately do not receive any money from the company.
@Jared Newsom the PM sent a contractor to assess, and they state the 7 year old roof is in bad shape. I don’t understand how a 30 year roof could be bad. He did say it was missing shingles, which it was not last year when we had it checked. The insurance adjuster plans to do his assessment either today or Monday. He said they use drones now. I’m a little Leary about the quality of a drone inspection compared to the human eye. The adjuster states that the interior damage will be covered by insurance, but not the roof itself. Any tips on working with the insurance to cover the whole thing? I suspect the rain, wind, or possibly a tree limb caused pre mature failure of the roof.
I don't know why the adjuster has already told you the roof damage will not be covered unless you do not have proper coverage on your policy. In Texas, you can choose Replacement Cost roof coverage, Actual Cash Value roof coverage (which factors age and depreciation to give a partial payout instead of full payout), or no coverage at all for wind & hail damage (an exclusion). You need to review your policy. If the missing shingles were caused by the storm and you have the proper roof coverage, it should be paid by insurance. If the roof is only 7 years old and they say it is in bad shape due to its age, I would get a second opinion from a contractor. Even in harsh climates, a modern shingle roof should last 15+ years. You also have the right to ask for a second insurance adjuster to inspect the property if you feel that the first one did not perform his duties correctly. It's unfortunate, but some insurance companies are less willing than others to pay claims and it's up to the homeowner and their agent to fight it. This is why I always recommend using an Independent Agent that has the best interest of the customer at heart, not the best interest of the companies bottom line. Good Luck!
@Douglas Pollock The adjuster quoted about $3,500 for interior repair. He says the roof looks fine, but couldn’t inspect it all because the tarp is covering it. Insurance is also saying that the wind/hail exclusion raises the deductible to a percentage ($5,400). So, if there’s a heavy rain storm, and it’s not a named storm, and roof gets in through the ridge vent (suspected culprit), then is that wind/hail... or just rain? Sure, they often go together, right? But, I would think wind damage would be tied to things like missing shingles, downed trees, debris, etc. So how does an owner have that discussion with the insurance agent? Any tips for how this discussion is likely to go?