I noticed a few of my neighbors doing their roofs and asked the contractor for a free estimate.
He said he was a ‘preferred’ contractor with my insurance company (apparently the same one my neighbors have). Their reviews are decent, but I have a hard time believing Google reviews based on past experiences with contractors. My roof is about 8 years old, but does have some hail damage and granule loss, and will need to be replaced.
The contractor stated that I should open a claim and provide him with the adjuster’s info so he can work with them. The only thing I would pay is the deductible. The contractor will provide the previous month’s pricing to the adjuster, and the adjuster would come back with their own findings. He mentioned that sometimes they don’t even come out to inspect because he’s got a good reputation with them and usually it’s approved. He went up on the roof and spent some time taking pictures and marking the roof on things they look for.
Separately, I had new gutters installed (out of pocket) last year, and he said he can get those reimbursed too, along with hail damage to the backyard concrete deck and paint of the fence.
Questions:
What is the contractor’s incentive to get my gutters, concrete deck, and fences reimbursed through insurance? Is this to make up for the gap if the insurance company comes back with $20k versus, let’s say, his charge of $25k (I didn’t get his estimate yet, so don’t mind the numbers, but he showed me the quote for the house across the street of the same size)?
If the hail and wind damage claim is opened, is that now multiple claims or the same claim?
He said that my premiums won’t go up because the insurance companies usually do it by zipcode rather than individual costs. In fact, he said I can reduce my premiums by saying the roof is new now. This seems too good to be true.
He also said that I will get money back from the insurance to do other things since I will get reimbursed for the gutters replaced and hail damage to the concrete deck and wood fence paint/stain damage. Also seems too good to be true in my mind. Is this fishy?
What other questions should I be asking before I proceed with this?
I had a similar situation last year, and it was a bit of a rollercoaster. What helped me was using this a comparison website to check different contractors and their reviews. It made a huge difference in finding someone reliable.
Just make sure you get multiple quotes and read the fine print on your policy. It can be a bit of a mess, but it’s worth it in the end.
Frost said: @Vann
Don’t know, ask your agent. Also, those deductibles seem super high.
They most certainly seem high compared to other Reddit posts of folks getting a new roof for a 1k or 2k deductible. I pay 1.5k a year in TX for this policy, to provide some more context.
@Vann
Depending on what part of Texas you’re in, mileage will vary for roofs. I’m in San Antonio, and a roof is typically good for 15 years here. Some insurance companies say a roof is good for about 6 years in DFW.
You have a wind/hail deductible and an all-other-perils deductible on your policy because wind/hail is the number one cause of claims here. If you were along the gulf, a lot of companies have a minimum of 2% for wind/hail, which makes you pay more in the case of a claim. You should have more life left on your roof, BUT it’s very location/region-dependent, so maybe it’s maxed out.
GET A SECOND ROOF OPINION, but feel free to message me if you have any questions.
Also, if you do get a new roof, be sure to shop your insurance because sometimes a carrier won’t reset your policy after your claim. A new roof is a huge discount, and your carrier will want to keep getting your higher premium since they just paid you out.
Typically not in TX, at least near the gulf. Usually, the deductible is 1 or 2% of the insured value, depending on the type of claim. We don’t really have the option for flat-rate deductibles anymore, in my experience.
@Shane
This is correct for Texas, and it’s starting to happen in other states too, precisely because of the savvy roofers described by OP. Premiums will keep climbing, and deterrent deductibles will continue.
I was a claims adjuster in Dallas, and at least half of my inspections were roofs.
@Vann
I’m a roofing/siding contractor. The % deductibles are awful—always use a fixed deductible. The 1% deductible is 1% of your home’s worth. When housing prices skyrocketed during the pandemic, the cost of those deductibles also skyrocketed.
This is literally what a roof scam is and why Florida insurance companies aren’t covering full roof replacements anymore. There is no such thing as a free lunch, and filing a claim because it’s old, not from actual damage, is insurance fraud.
He provides bloated quotes, you pay just the deductible, and he profits the difference. Or, in the case insurance doesn’t pay, most contracts are written where you will cover the difference. And at that point, you’ll be upset but already committed.
If you have a claims-free discount, your insurance will definitely go up. But not by as much as the cost of a new roof.
They all say rates won’t go up, but your rate will increase. He’ll blame it on something else, but when you’re getting $25,000+ from insurance, they will raise rates. Also, if you have a second claim, for anything—leak, fire, lawsuit—there’s a high probability that you’ll get dropped from your current insurance company. And after you’re dropped, it’s very hard to find another company willing to take you. Once you do, you’ll be paying a crazy amount for insurance. Claims stay with you for 5 years, so if you ever change companies, you’ll need to report the claim, and it can impact future rates, even if you move houses.
Insurance isn’t supposed to be used for regular maintenance and capex. It’s used for an unexpected catastrophic event (hurricane, fire, flood, etc.).
@Bailey
That’s what I figured from my limited understanding of this. I’m learning more now and will get estimates to compare.
It sounded too good to be true when they said even if you’re the best on the block, your premiums will go up anyway (which they will yearly, he’s probably not wrong), but individual premiums and my ‘claims-free discount’ will go away, logically, I presume.
@Vann
He is a salesperson. He will say anything to get the sale. If your rates go up or you get dropped, that’s not his problem. He’s on to the next house. These companies are called storm chasers in our area. They go to neighborhoods after a storm doing ‘free evaluations.’