We have had a historic spring and summer for hail. My shingle roof is 10 years old.

My current ded. is $5860. I can lower it to say $1000, and premium goes up $900 a year.

Is there any reason I should do that before possibly filing a claim at the end of the year for a new roof?
What kind of measures do they have in place to prevent this, because it seems like it might be too easy.

We will no doubt have at least one more hail storm for this season if not several (or even next year).. so technically speaking, I could say the 'loss' occurred on that storm (in reality it's the combination of many storms)?? It's not like a vehicle that has a cut and dry loss date with a wreck.

I'm not sure how hail claims work.

Thoughts?

Picard said:

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You're asking us if it's ok to commit insurance fraud?

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it's not fraud if I don't need a new roof right now is it?

I don't believe I do. But I will with a few new a decent storms.

Like I said a roof is really different than a car wreck or other home damage. The damage isn't all at once, it compounds over multiple storms.

That's an interesting question considering I suspect your insurance company would gladly let you swap coverage the other way and laugh all the way to the bank if you had to file.

Mathguy64 said:

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That's an interesting question considering I suspect your insurance company would gladly let you swap coverage the other way and laugh all the way to the bank if you had to file.

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exactly, I could save $500 a year and double my deductible.

I see this as no different than lowering deductible before hurricane season because you think a big one is coming. It's not illegal.

I've decided I'm not going to do it now, because hail season is over. I may do it in April though. We pretty much get hail storms (many of them minor) every year.

What I don't know is, does an insurance company consider multiple small storms necessary for replacing a roof, or one large one???? Who knows.

But shingles don't always fail with one hail event (though they certainly can). It is totally normal for shingles to wither away over years of smaller storms with not any specific storm being the sole culprit.

So I don't think this discussion is even borderline fraud. Unless I had a massive hail storm yesterday, lower my deductible today, to file a claim tomorrow.
I think my roof is nearing the end of its life, and one large storm or about 4-5 smaller ones could do it. I've taken the risk with higher deductible for 10 years that one single huge storm didn't wipe out my roof, but now I'm reconsidering that risk and adjusting is not a crime.

That doesn't mean it's not fraud.

Are you intending to up your deductible following the anticipated fall hail season?

BourbonAg said:

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agnerd said:

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They may want to inspect your roof to make sure there's no existing damage. Or there might be a 30-day waiting period before the new deductible will be accepted.

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This is what I was going to say. Insurance companies have waiting periods and inspections for a reason. If it's fraud to change your deductible for something that might happen in the future, then almost everyone who changes their deductible would be committing fraud.

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Lots of inconsistencies in this thread, though....

OP states they've had an active hail season, should they change policy to replace their roof at the end of the year....

Then states it's not fraud because their roof is fine now but may need to be replaced at the end of the year...

Then states that hail season is over....

Oversimplified way I look at it, because I understand waiting until the end of the hail season, if you didn't have another hail storm would you have your insurance come out and inspect your roof to see if it should be replaced? If yes, what you're doing is borderline fraud, if no, I see no issue.

Seeing a new trend in weather patterns and adjusting your coverage is one thing, changing your coverage because of things that have already happened is another....But yes, to your point, the insurance company should have an inspection to prevent/limit this. But then, will the OP be forced to pay their higher deductible to replace their roof when maybe it wasn't 100% necessary?

Aggietaco said:

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Are you intending to up your deductible following the anticipated fall hail season?

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I don't know, my increase in premium would take ~5-6 years before breaking even on my lower deductible, if I have a claim. Lots of time to think about it

htxag09 said:

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BourbonAg said:

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agnerd said:

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They may want to inspect your roof to make sure there's no existing damage. Or there might be a 30-day waiting period before the new deductible will be accepted.

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This is what I was going to say. Insurance companies have waiting periods and inspections for a reason. If it's fraud to change your deductible for something that might happen in the future, then almost everyone who changes their deductible would be committing fraud.

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OP states they've had an active hail season, should they change policy to replace their roof at the end of the year....

Then states it's not fraud because their roof is fine now but may need to be replaced at the end of the year...

Then states that hail season is over....

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While I did say "possibly filing a claim at the end of the year for a new roof" my follow up posts indicate that it's my belief that I don't need a new roof now, but will after we have a few moderate, or one single extreme hail event. That is not likely happening this year as the season is nearing the end, but next year is of course a crap shoot, just like any year.

So there would be no reason to lower my deductible now and pay a higher premium. I would do it early spring time in anticipation of hail storms, unless I find in their documentation some sort of waiting period.

Quote:

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Oversimplified way I look at it, because I understand waiting until the end of the hail season, if you didn't have another hail storm would you have your insurance come out and inspect your roof to see if it should be replaced? If yes, what you're doing is borderline fraud, if no, I see no issue.

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DadAG10 said:

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Needing a new roof and having hail damage are two separate things.

Deductibles are a per occurence basis.

Carriers use tracking to know dates, locations, and severity of hail storms.

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Put it this way, all houses on my street are same builder (so same shingle presumably) and built the same year. Some neighbors got a new roof last year and the year before, some are getting or just got a new roof this year, and undoubtedly some more next year and the following year. That's because we have hail every year.. this is not an uncommon occurrence in the front range. And 'needing a new roof' is not a cut and dry determination. The roof deteriorates with every little hail storm.

Not sure what your last statement is trying to prove; I have no intention of filing a claim without a storm happening.

But I feel that, by next summer or maybe the one after, or the one after that, there will be a severe enough storm, or several more minor storms, that will result in my roof reaching the end of its life. I can lower deductible now, and if I make a claim within 5-6 years because of a future storm, I will save money. That's a long time, and a chance I'm willing to take. At that point my roof is 17 years old, nearly old enough to get a new roof without a specific weather event.

This year we've had about a dozen instances of hail, ranging from pea size to 1/2" or more.

62strat said:

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DadAG10 said:

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Needing a new roof and having hail damage are two separate things.

Deductibles are a per occurence basis.

Carriers use tracking to know dates, locations, and severity of hail storms.

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Not sure what your last statement is trying to prove; I have no intention of filing a claim without a storm happening.

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From the first post:

"Is there any reason I should do that before possibly filing a claim at the end of the year for a new roof?

What kind of measures do they have in place to prevent this, because it seems like it might be too easy."

Also, your policy likely states that you have to file claim within 12 months of date of loss, so you would want to file if you currently have damage.

Depending upon your location, they likely won't allow a $1K deductible for wind/hail.

DadAG10 said:

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Depending upon your location, they likely won't allow a $1K deductible for wind/hail.

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This is accurate for any location in Texas. I'm pretty confident we are 6-12 months away from 2% deductible minimums for wind & hail as the standard. Even now, very few carriers offer $1000 deductible for wind & hail. It is still an option for Clause 2 perils, which applies to claims involving all other types of covered damage outside of wind & hail. If you know someone with $1000 deductible for wind & hail, it's probably a grandfathered policy.

Maroonedinaustin said:

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DadAG10 said:

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Depending upon your location, they likely won't allow a $1K deductible for wind/hail.

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This is accurate for any location in Texas. I'm pretty confident we are 6-12 months away from 2% deductible minimums for wind & hail as the standard. Even now, very few carriers offer $1000 deductible for wind & hail. It is still an option for Clause 2 perils, which applies to claims involving all other types of covered damage outside of wind & hail. If you know someone with $1000 deductible for wind & hail, it's probably a grandfathered policy.

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ic an log into usaa and change the deductible to see the updated premium, so it seems it will let me. I can 1k, 2k, 3k, 5k and 10k. My current is 1% which is $5800, which is pretty inaccurate. (Current evaluation is $800k)

Sorry I missed this. Pardon the typos. I'm on Mobile. I'll clean it up on the desktop.

I'm gathering the main purpose of your pose can be summarized as "THE RENT IS TOO DAMN HIGH" and you want to save some money.

With that in mind, yes, you can decrease your deductible any time you see fit. USAA makes this a snap online.

Now, let's address some nuts of bolts, many of which have been addressed.

You have hail damage, or you think you might, and it seems there is a call for fraud….I'm not here to judge and frankly, I don't care what insurance carriers do if they approve my roof claims. Rest assured that USAA will do what it needs to do to insure that you aren't defrauding them, regardless of your intent. So, what I'm saying is, you might change it now, make a claim later, and then pay the lower deductible for the old damage. Is that fraud? Well, if insurance goes for it, then I don't think so. After all, they have adjusters and an army of professionals to root this out right? Is it ethical? I don't think so. But again, I'm not judging anyone for that. I've spent months fighting tough adjusters and stingy carriers on legit easy claims, so I get it.

With that out of the way, what may happen is:

They inspect your roof shortly after changing your deductible and find hail damage and then compel you to replace it now. Since the hail occurred previously, it might fall under your old deductible. Which means you're going to lay a higher premium and get stuck for the old deductible. 5800 for a full reroof is still a steal, but be aware of this possibility.

My non-roofer personal advice to save money on USAA is….

Keep your deductible at 2% but evaluate how often you've had hail. If you reduce it and then don't get a hail storm in 5 years, you've spent a bunch of money for nothing. Also, evaluate your houses value. USAA increase values without appraisal annually no matter what. They will allow you to reduce the value of your insured amount to 80% of its current stated value. This can save you a lot of money if USAA has you insured for RCV at 800k but your house is really worth 600k. In that case the reduced amount would be better and smarter. I did this with my own home and even with the reduced rate I could build it twice as big or twice as nice as it is.

To summarize, consider doing your roof soon at the old deductible, leave it at 2%, reduce the insured amount to 80% of current if reasonable….profit.

My opinion of insurance is that "They are banking on the possibility that you won't need it. You are banking on the possibility that you will."

I don't know where you live but if you're in texas, I'd wait until next February to decrease a deduc to me if you decide to do that anyway. Hail season starts most likely shortly after that. We could pick up something in October of this year though.

As always, feel free to call, text, or email if you want to bounce ideas or want any more details. I'm easy to get a hold of.

We just had ours replaced. Like Jason mentioned above, the deductible you had when the damage occurred will likely apply. That's how our went because the damage occurred in April, when we had a LOWER deductible. Our premiums had increased since then because of the tax assessment, but they only made us pay the deductible we had before that change. Not saying that would be the case if it were the other way around, just my experience.

Now, I do have a sort of related question. Our policy is up for renewal soon and our rates are going to go up significantly it seems. Would it be improper to complete the roof repair process (we are still waiting on some minor leak repair and paint to be done inside) with the current insurance, then switch to a new policy from another company if we could save enough to make it worthwhile? Just brainstorming.

1208HawkTree said:

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the deductible you had when the damage occurred will likely apply. That's how our went because the damage occurred in April, when we had a LOWER deductible. Our premiums had increased since then because of the tax assessment, but they only made us pay the deductible we had before that change.

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I'm not sure I follow.. premium increase due to tax assessment doesn't = deductible increase. Your deductible should never increase or decrease unless you change it.

Also, I will (with nearly 100% certainty) have more hail damage in the future, even if Iower my deductible.
So, I hypothetically could have damage at x deductible, and more damage at 0.5x deductible..

62strat said:

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1208HawkTree said:

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the deductible you had when the damage occurred will likely apply. That's how our went because the damage occurred in April, when we had a LOWER deductible. Our premiums had increased since then because of the tax assessment, but they only made us pay the deductible we had before that change.

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I'm not sure I follow.. premium increase due to tax assessment doesn't = deductible increase. Your deductible should never increase or decrease unless you change it.

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Maybe they mean the insured value went up with the new tax assessment and the deductible was a percentage and they allowed them to use the previous value to calculate?

BourbonAg said:

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62strat said:

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1208HawkTree said:

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the deductible you had when the damage occurred will likely apply. That's how our went because the damage occurred in April, when we had a LOWER deductible. Our premiums had increased since then because of the tax assessment, but they only made us pay the deductible we had before that change.

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I'm not sure I follow.. premium increase due to tax assessment doesn't = deductible increase. Your deductible should never increase or decrease unless you change it.

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Maybe they mean the insured value went up with the new tax assessment and the deductible was a percentage and they allowed them to use the previous value to calculate?

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Exactly. When we filed the claim, the insured value of our house had increased, and our roof wind/hail deductible had also increased because it's a percentage of the home's insured value. They said that the deductible we had at the time of the damage would apply, not the current deductible. It wasn't a huge difference, but it was less.

1208HawkTree said:

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Now, I do have a sort of related question. Our policy is up for renewal soon and our rates are going to go up significantly it seems. Would it be improper to complete the roof repair process (we are still waiting on some minor leak repair and paint to be done inside) with the current insurance, then switch to a new policy from another company if we could save enough to make it worthwhile? Just brainstorming.

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I don't quite follow your question. But if I do, it doesn't matter. It's perfectly fine and ok to do what you are asking. Your roof claim is tied to your current policy. Even if you killed the policy the day after you roofed, it's still handled and paid by the insurance company it's under. In fact, even if you changed companies today and then realized you had hail damage from last year, it would be your previous insurance companies obligation to pay and fix that.

If you can expand your question a little, I'm happy to help answer it if I can.

Not wanting to follow all the details and with Jason comments I always agree
my 2-cents is
Keep the status quo
Replace now, then change the deductable .. or not .. a rip off IMHO ... if agreed, then change Ins.Carrier ASAP
or
wait for more hail damage ... dispute the fact the extensicve damage payback expectations were not b/c you didn't fix the 1sst damage ... then lawyer up to pay for the whole tamale (there will be a fee) ... then change Ins.Carriers ASAP
or
find another more reasonable Ins.Carrier now
they appraise damage they are buying into and go from there

Me thinks the real question IS do I need a new & fair Ins.Carrier b/c I'm getting "the biz here"
I say YES but only shopping around will tell the truth.
I found out my car insurance was better off where it is now, no matter how HIGH it is, but live among beginner drivers with IQs usually not allowed in college most places.

Update;

Called USAA this morning. To change my wind/hail deductible, USAA requires no inspection and no waiting period. I explained I had a % based deductible, and since my home rebuild cost has doubled since I bought my home, I'd like lower my deduct. to a more manageable number.

I lowered it to $2k (down from $6k), and premium went up $600/yr, or 4000/600 = 6.66 year break even.

In 6.66 years, 10/2030, my home will be nearing ~18 years old.
if I make a claim before then, this exercise will have saved me money; otherwise, it will have cost me money.

A gamble, but decent odds imo. I have no doubt we will have a major hail storm within 6 years, since we get them every few years it seems.

If I file a claim in say 2 years after a big hail storm, I don't see how it's possible they claim/prove that I had previous damage from a storm that happened before today.

You should be fine if…

1.). Your policy does not have any exclusions for roof age. Some flip to ACV after 15 years, or any number of wierd things they bury in fine print.

2.) the hail storm you experience creates enough damage to total the roof per USAA requirements. Old hail damage only really comes into play when you don't have enough damage with a current storm. Adjusters will crawfish on it by citing "there is enough hail damage overall but some of it is old and we aren't covering it." If you get hail storms like Austin experienced, it won't matter if you had previous damage or not.

To your point, though, your adjuster won't be able to tell if the old damage occurred in February of 2024 or December of 2023 by appearance alone, but they could references hail and storm dates to make a determination. Either way, a new storm dripping baseballs on your roof will be a total loss today and your policy is good as of yesterday and you should be good to go.