The Spring hail season in North Texas has been somewhat quiet so far this year. We have not had as many big storms through March and April as we have in recent years. But that doesn't mean they aren't coming.
Like most folks in North Texas, Jason knows hail season is expensive. His neighbor across town had to replace a roof last year after a big storm, and it cost over twenty thousand dollars. That was about five thousand more than what it cost the last time his modest home needed a roof replacement.
As if that wasn’t enough, homeowners insurance companies across Texas have been raising prices so fast even hedge fund managers are shocked. So when Jason’s insurance company offered him a new way to save money on his home policy, he was intrigued. The offer seemed simple. Agree to a sublimit on roof coverage and pay less insurance premiums.
Jason liked the idea of saving money, but something about it felt off. He wanted to know what this “sublimit” actually meant and if there were any traps hidden in the fine print.
What a Roof Sublimit Actually Means
Jason found out that a roof sublimit, sometimes called a stated limit, puts a cap on how much the home insurance provider will pay to repair or replace the roof if it gets damaged by hail or wind. That limit is set ahead of time when the homeowners insurance policy is written.
So if a big storm comes through and the cost to replace the roof is $22,000, but the roof sublimit is only $15,000, Jason would have to pay the extra after meeting his policy deductible.
That made Jason stop and think. The cost of roofing in Texas has been climbing fast due to labor and material cost increases. What if prices keep rising, and his sublimit doesn’t? Would the savings he gets on his premium be worth the risk of getting stuck with a much bigger bill later?
To figure that out, he wanted to understand how this compared to the other types of roof coverage he’d heard about before.
Comparing Claim Payout Roof Options
In the past, Jason had always had replacement cost coverage on his roof. That meant if a storm tore it up, his insurance would pay to put on a new roof using similar materials after he met his homeowners insurance deductible amount. It didn’t matter what the price was, as long as he paid his deductible. That gave him peace of mind. But with the average cost of homeowners insurance up more than 60% over the last three years, it was tough to keep writing that check.
Jason also heard of roof payment schedules that have been introduced into homeowners policies during the last few years. Those reduce what the insurance company will pay based on how old your roof is. So if your roof is ten years old, they might only pay half of what it would cost to replace it. The older the roof, the smaller the payout. Actual cash value for those of you who know what that is.
A sublimit is different. It doesn’t shrink with the age of your roof like a payment schedule does. Instead, it sets a maximum policy limit payout no matter how much that roof replacement costs. The policy can still be considered replacement cost for mortgage purposes, but only up to the amount listed as the sublimit.
Jason realized that if roof prices kept rising and his sublimit stayed the same, he could end up short on cash when it was time for a claim payout. He wanted to know why his insurance company was rolling this out now.
Why Insurance Carriers Are Offering Roof Sublimits In Texas
Jason’s agent at Insurance For Texans is a pro at explaining insurance coverages for him. He explained how the cost of roof claims in Texas has skyrocketed. Texas has more hail claims than anywhere else in the country, and roof replacements aren’t cheap. Insurance companies are trying to control how much they have to pay when storms hit and homeowners insurance coverage has to replace those roofs.
A roof sublimit helps them keep their payouts predictable and capped. Roofers can no longer inflate claims to cover deductibles because of that hard limit. As a result, it lets them offer lower premiums to homeowners.
For homeowners who want to cut their monthly costs and are okay taking on a bit more risk, it might be worth considering. But Jason still had some questions.
What a Sublimit Really Means for Your Budget
Jason liked the idea of lowering his home insurance bill, but he didn’t want a nasty surprise when it came time to file a claim. With a roof sublimit, he’d save money each month, but if a storm came through and caused serious damage, that fixed limit could leave him paying thousands more than expected.
Roof replacements in Texas are getting more expensive every year. If that trend continues, the gap between the insurance check and the total repair cost could grow. Jason had to ask himself if he was ready to take on that risk just to save a little today.
Why Talking to a Texas Insurance Specialist Helps
Jason knew this wasn’t something to figure out on his own. Picking a home insurance policy terms just because they are cheap could leave you in a bad spot. Deductibles, roof age, sublimits, and payment schedules all matter when you’re the one making a claim.
That’s why Jason loves Insurance For Texans. The experienced, independent insurance agent walked him through every option, including replacement cost, roof payment schedules, and sublimits. They explained what each one really meant for his home and his wallet. That's how True Texas Home Insurance works. It’s a program designed specifically for Texas homes and Texas weather.
Want to Know What Your Roof Coverage Actually Pays?
There are lots of ways to build a standard homeowners policy today, and insurance companies are adding more choices every year. But not all property insurance policies are the same when it comes to roof coverage. If you don’t know what your policy will pay for a hail claim, now is the time to ask.
True Texas Home Insurance is built for this state and built for homeowners who want real answers.
Click the button below to talk to a local expert and find out if a roof sublimit is the right fit for your home.