Like most folks in North Texas, Jason knows hail season can be a mess. His neighbor across town had to replace a roof last year after a big storm, and it cost almost $20,000. That price tag was up about $5,000 from the last time a big storm had hit McKinney.
To make it all worse, all of the Texas insurance providers have been raising their insurance premiums so much hedge fund managers were blushing. So when Jason’s home insurance company offered him a new way to save money on his policy this year, it got his attention. The offer to lower his premium by picking a stated limit for roof coverage sounded too good to be true.
It sounded simple. The company would cap the amount they’d pay for roof damage from a hail storm. In return, Jason would pay less for insurance each month. But before he said yes, Jason wanted to understand what the gotchas are.
Jason learned that a stated limit is a fixed amount of money the insurance company agrees to pay if his roof is damaged resulting in a covered insurance claim. The policy limits will have a predetermined maximum amount that it will pay for your roof system after a deductible is satisfied.
If a big storm rolls through and damages his roof, and the total replacement cost is $17,000, Jason would be left to pay the difference if the stated coverage limit was less than that $17,000.
That gave Jason pause given what inflation has done to the cost of repair over the last five years. He had to think about whether the money he saved on his premium was worth the risk of getting stuck with a big bill if those repair costs skyrocketed again.
Once he understood the basics, he wanted to know how this kind of coverage stacked up against other options.
Before now, Jason’s roof was always covered under replacement cost coverage. That meant if it got wrecked, his insurance company would pay to put on a new roof with similar materials, no matter how much it cost after he paid his hail deductible. It gave him peace of mind, but those rising insurance premiums made it difficult to stay the course.
Another option he’d heard of was a roof payment schedule. That kind of policy pays less as the roof gets older, just like actual cash value policies. For example, if the roof is ten years old, the company might only pay half of the replacement cost after the deductible is met. The older the roof, the smaller the check.
A stated limit works differently. It doesn’t go down like payment schedules. It’s a maximum set number to cover the cost of damage. The policy can be considered a replacement cost policy so long as the cost of replacement is below the stated limit.
Jason realized this was important. With roof prices rising across Texas, a limit that stays the same could end up costing more than it saves on the homeowners insurance costs.
He was left wondering why his insurance company would offering this now. So he asked agent at Insurance For Texans.
Jason’s agent explained that insurance companies are trying to deal with the rising cost of roof claims. Texas has more hailstorms than any other state, and roof repairs don’t come cheap. By offering a policy with a stated limit, the company can keep premiums lower while limiting how much they’ll have to pay out in a severe storm that causes major roof damage.
This helps them stay competitive in a tough market and doesn't incentivize the roofing companies to inflate claim payments unnecessarily. And for homeowners who want to save money now and are willing to accept a little more risk, it can be a good deal. But Jason wasn’t sure if that tradeoff was worth it.
Jason liked the idea of saving on the cost of homeowners insurance every month, but he also didn’t want to be surprised when it came time to file a claim. With a stated limit, he could pay less up front, but the cost of roof replacement could still hit hard later.
The problem is, roof replacements in Texas often cost much more than people expect. If that cost keeps rising and the stated limit stays the same, the gap between the claim settlement and what the homeowner owes can be pretty big.
Jason started thinking about how much risk he was willing to take. That helped him start to figure out if this new option made sense for his home.
Jason realized this decision wasn’t as simple as picking the cheapest homeowners insurance policy out there. There’s more to roof coverage than just numbers on a page. Deductible amounts, dwelling limits, roof age, and insurance policy terms all matter when a claim for roof damage hits.
He wanted to talk to someone who understood how Texas insurance really works, especially when it comes to roofs. He was thankful for Insurance For Texans. They offer True Texas Home Insurance, a program built specifically for Texas weather, Texas homes, and Texas families. Jason knew they would explain his options and help him compare the savings now with the risks later. They helped him feel confident that if a hailstorm did tear up his roof, he wouldn’t be left figuring it out on his own.
There are plenty of ways to build a home insurance policy. But only True Texas Home Insurance is built to handle what Texas homeowners actually face. Policy options for hail damage are now becoming plentiful, but they don't all work the same way. You need an insurance agent who is an advocate for you and your home.
If you want to explore a roof payment schedule, replacement cost, or a stated limit type of coverage for hail damage, now is the time to talk to the independent agents at Insurance For Texans.
Click the button below to get options for your home insurance and make sure your roof is really protected before the next storm rolls in.