Replacing a roof is one of the most expensive projects of the house every owner will ever face. In fact, Angieslist.com reports that costs consumers an average of $ 11,095 to tear and replace an old roof in 2014.
Although it is possible to record over several months or years to replace an old roof, sudden damage of something like a windstorm does not give you this option. That's why it's so important to have the right cover for your roof
In the world of insurance, there are two major losses settlement options that affect the amount of coverage available to repair damage to your roof :.
- actual cash value (ACV) regulation factors of the loss in the age and condition of the roof come with an amortization amount to be deducted the cost to repair the damage to the roof.
- The replacement cost settlement loss reflects the coverage available to repair the damage to the roof without considering depreciation.
replacement cost is the best option regarding the repair of the damaged part of your roof because there is no deduction for depreciation. Yet, roofs covering on a basis of LCA is increasingly common, according to Claims Management Magazine.
Having a covered roof on an ACV basis could become a financial burden for the owner. This is especially true if your roof is older and in poor condition. In some cases, there may be a large capital cost allowance if the roof is damaged near the end of its life.
The replacement cost leaves you in a better position to repair the damage to the roof without having to suffer the consequences of depreciation is taken into account in settling claims. The tradeoff is that the premium will cost more than it would if your house was insured on the basis of stroke. One way to do a more affordable replacement cost policy is to increase your deductible.
Getting the right cover for your roof
When researching home insurance, it is important to talk with your insurance agent about how your roof is covered. Many people find that having their roof covered on a replacement cost basis gives them protection and peace of mind they need.
Erie Insurance provides home insurance automatically covers your roof replacement cost. For more information about this or to get a quote, contact an Erie Insurance agent in your community.
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