Hurricanes, Tornadoes, and Insurance

[Skywagon]

I got a stupid form letter from my insurance company of more than 40 years a couple of weeks.  They were obviously selling, but it kind of backfired.  You know us retired folks (4 years now) have plenty of time to do research or take a nap if we want.  They were warning me about upcoming summer and possibility of hurricanes, tornadoes, wind, rain, wrong oil for my BMW...ok the last one I made up.  So......... I started looking at my deductible for my roof should I need to file a claim.  To my great surprise ( before retirement you just pay and never read) my roof deductible is 2% of the value of the entire property/house.  In my case that is $36,000.  Holy crap....how much does a roof cost.....so I reached out to a couple of reputable roof folks in the area and asked them to bid a new roof.  I was upfront and told them I don't need one now, but if I ever did I would likely call them.  I just needed it to make sure I had enough insurance.  Grab your are you kidding me hat.

 

These two folks are supposed to be some of the best and some of the highest priced folks in the area.  The top bid for full replacement was $33,000 with others ranging down to $25,000.  Hmmm...time to call agent and say WTF on the deductible.  I met him in person and his answer was yeah that's right.  I tried to appeal to their corporate office saying you are selling insurance with zero value and risk.  Their answer....wait for it.  It balances out for others and some not like yours.  So.......fastforward.....I wrote a letter to the State Insurance Commissioner and the Governor today to see what they have to say.  I suspect I'm just hosed, but not happy.  I am going to shop around and go through the pain of insurance sellers....argh.

 

I asked why do you not just do 2% of the dwelling, not the property also....no answer other than thats our policy.  The total value is made up of the land being about 1/2 of the value.

 

My note's purpose...to vent some, but also to remind you to check your policies and do the math, let you be surprised when you might need them.

 

P.S.

 

Thie reminds me of when I lived in California, shortly after the two big earthquakes and the losses insurance companies took, many of them decided to pull out of the earthquake insurance business.  Not so fast.  The then insurance commissioner told them if you don't sell earthquake insurance here you can't sell any insurance here.  Some left, most stayed and offered earthquake insurance.  I hope my note to the Texas Commissioner might do some good and not let people get caught thinking they have roof insurance when actually they don't.

[Hosstage]

I have a straight amount for a deductible on all property insurance claims, no percentage of value.

But, I will be double-checking. I go through a broker, so they check competitive rates every year. Or are supposed to be.

[Rougarou]

Our replacement roof in our last house was $6k (arkeetechshual shingles), the guy had to bump it up $500 due to the steepness of it  After the hurricane Laura hit, the replacement roof on the father in laws house in Sulphur, La was $12k (from shingles to metal, what shingles were left)(seems price gouging is a thing after a storm).

 

My current roof (metal) is something like 3700sqft and I have solar on it.  I got an estimate of replacing from one of the top bidnesses in the area (they got commercials, pretty painted trucks and stuff).  $35k.  This would be full replacement, cutting me some ridge vents and they have to have a 'lectrician remove the solar panels, then put them back on.  I don't need a new roof, but I wanted to know what it would cost on the high end.

 

Now, if I did need a new roof, I'd hire a small, local crew to do it (so long as insured and warrantied and repped).   Talking to a handyman that I know, he said that full replacement of my roof shouldn't be no more than $12-15k with the same requirements of that hi end company.  

 

Anyway, I'm not going to replace it, I'm just gonna paint it and be done.