Higher Deductibles, Lower Payouts in Texas

One of the most confusing hurdles in today’s insurance market is roof coverage. Homeowners, buyers, and sellers often ask:

• “How does everyone else in this neighborhood have insurance?”

• “I’ve never had this issue before—why now?”

• “One company declined coverage—does that mean the home is uninsurable?”

It’s a Market Shift, Not Just a Transaction Issue

Insurance rules have changed. Many homeowners grandfathered into better roof coverage may lose those benefits if they switch policies for a lower rate. While long-time policyholders may not notice, buyers and those shopping for new coverage will.

Key Considerations for Homeowners & Buyers

• 5+ year-old roofs = higher premiums, lower payouts

• 2% deductibles = $12K+ out-of-pocket for claims on a $600K home

• Tree trimming is now required by insurers—don’t let it be a surprise

Why It’s Important Beyond Buying & Selling

• If a recent hail event occurred, filing a claim before switching policies may be beneficial.

• Moving to a new policy could mean losing Replacement Cost (RCV) coverage, leaving you with Actual Cash Value (ACV), which factors in depreciation.

• If changing carriers, ensure roof coverage terms are equal or better—don’t focus solely on premium savings.

The Bottom Line

Roof-related insurance issues don’t just affect home sales—they should be evaluated before making coverage changes. Understanding these factors now can prevent costly surprises later.

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