Due to an increase in tornado claims, insurance companies are paying out more for roofing damage. According to the National Centers for Environmental Information, Tennessee averages 26 tornadoes annually. The Volunteer State also leads the nation and has seen an uptick in tornadoes at night. According to Property Claim Services, tornadoes accounted for 40% of inflation-adjusted insurance catastrophic losses between 1997 and 2016. Roofing claims often accompany tornadoes. As a result, many insurance companies are changing the way they handle costly roofing claims, and it’s important for clients to understand the type of coverage they’re getting.
First, understand how your insurer will handle any losses you endure. For homeowners policies’, your policy will offer either actual cost value or replacement value when filing a claim. Actual cost value bases what the insurer will pay based on the age and depreciated value of your roof. Replacement value means that your insurer will pay whatever it will cost to replace your roof, new materials and labor, no questions asked. Johnston & Associates only sells policies that pay claims based on replacement value.
Second, understand the types of deductibles available. The basic types are standard and percentage. A standard deductible is a set dollar amount that a policyholder has to pay before an insurer will cover any claim. A percentage deductible means you will have to pay a certain percentage of the value of your home before the insurance company pays on a claim. For example, if your home is worth $500,000, and your percentage deductible is 1%, that means your deductible is $5,000. Percentage deductibles can be costly when it comes to unexpected repairs or unpredictable if you live in an area with regularly fluctuating property values. Johnston & Associates only sells policies with standard deductibles.
Lastly, make sure to note any changes in deductibles and claims handling upon policy renewal. Sometimes insurers will announce changes to a policy’s terms and conditions upon renewal, but the customers won’t notice or realize it until they have to file a claim, only to discover they’re not getting the coverage they hoped they would.
For many, they don’t realize what kind of protection they have or need until disaster strikes. Johnston & Associates boasts 25 years of experience in both walking clients through tough times and making sure life’s unexpected tragedies aren’t a bigger financial strain than they need to be. As an independent insurance agency, Scott and his team make sure they find the carrier and coverage that fits your needs and your budget. They understand the needs unique to residents of Brentwood, Fairview, Franklin, Nashville, Spring Hill, and Middle Tennessee. Contact Johnston & Associates today to find the automobile, homeowners, or renters insurance you need at a price you can afford. With Scott on your side, when disaster strikes, you can be assured the only thing you’ll lose is a little sleep.