New Trend in Deductibles in Colorado
There are several new trends regarding deductibles that are beginning to take place in Colorado. In many parts of the country, insurance companies determine the property insurance based on a percentage of the value of the home. Currently in Colorado, the majority of insurance companies still offer a set deductible of $1000. Even as recent as five years ago many homeowner’s insurance deductibles were as low as $500. Taking into consideration the increase of storms in the past few decades I understand the necessity for insurance companies to increase deductibles. It’s obvious in a volatile weather pattern that if a company is going to remain solvent than they’ll have to increase deductibles. This is something to be expected so it would be wise to plan accordingly. The good old days of having a set dollar based deductibles may be a thing of the past.
Deductible Increase is Expected in Colorado
We have, however, noticed an increase in the number of deductibles that are being set based on a 1% value of the home here in the Colorado market. We have also have seen a trend in which several large insurance companies follow suit after a major competitor has successfully made such a change in their policies without too much resistance. My expectation is that once this became an accepted practice by some in our industry, we will see most insurance companies doing the same. Be sure to plan ahead with your budge to be able to pay for your deductible when the time arises.
Of course, deductibles are not the only factor in choosing an insurance company, but it does impact you significantly when filing a claim. It is worth asking your agent upon renewal what their current policy is on deductibles and what the forecast is for basis of deductibles in the near future. Your agent should be able to share specific details with you on your property insurance and what changes you may be facing.
New Polices May Depreciate Roof Values
A couple years ago Allstate rolled out a pilot program in Oklahoma. Since that time they’ve implemented the same procedures in over twenty states. Allstate homeowner’s policies in these areas and with their new program will only pay for full replacement cost of a roof that is less than ten years old. Every roof that is ten years or older will be valued at a depreciated amount or the actual cash value. This may help to keep premiums down, but when you go to replace an eleven year old roof after a major storm you’ll be in for a surprise.
Additional Deductible for Hail and Wind
Another trend is for insurance companies to create a separate deductible for hail and wind claims. In other parts of the country 2% wind and hail deductibles are becoming common. Take the time to read your Homeowner’s Declaration page at policy renewal to investigate whether or not any of these changes have taken place. The insurance company only has to send you notification of changes. It’s not going to be that obvious when these changes occur. Most likely you’ll have to do the research. It’s highly unlikely that you’re agent is going to give you a personal call to let you know about any of these changes. The agent wants to keep his or her clients and it seems that it might be easier if they don’t make a personal call to notify you of these changes. Our experience in the field is that most of our roofing clients are shocked after a storm. They had no idea that their deductible had increased.
Roofing Company in Colorado Springs
As a roofing company in Colorado Springs, Integrity Roofing and Painting is determined to share this information to our community before you’re caught off guard. Here at Integrity Roofing and Painting we like to say, “expect the unexpected”. I’m here to say that many changes will take place in the property and casualty insurance policies and procedures. There are many insurance sources online which can assist you in making the best decision for you and your family. I like to the visit the re-insurers websites and insurers websites to get a pulse on the market. Another place that I find good content on what insurance companies are doing is the websites of insurance adjusting firms. One thing is for sure, change is coming. Contact Integrity Roofing and Painting for your roofing needs.