Can you finance a new roof when you have an insurance claim?
Short answer. Yes. Financing is commonly used to cover what an insurance claim does not pay, such as the deductible, upgrades, or depreciation withheld on an actual cash value policy, and sometimes to bridge the wait while checks clear the mortgage company. Finance only that gap, not the portion the insurer is already paying.
An insurance claim and a roof loan are not either/or. Financing fills the space between what the policy pays and what the project costs, and it can smooth out timing when checks are slow.
Where the gaps come from
- Your deductible. With a percentage wind and hail deductible, 1 or 2 percent of a $350,000 dwelling limit is $3,500 to $7,000. See how percentage deductibles work.
- Non-recoverable depreciation on an actual cash value roof or a roof payment schedule, which is never paid back.
- Upgrades such as impact rated shingles, added ventilation, or new gutters beyond what was damaged.
- Timing. The first check may sit with your mortgage company for weeks, and recoverable depreciation arrives only after the work is done. See how mortgage companies handle insurance checks.
Common ways to cover the gap
- Contractor arranged financing, usually quick to approve and tied to the project
- A home equity loan or line of credit, often a lower rate but slower to set up
- A personal loan or credit card for small amounts, typically the most expensive route
Ground rules
Wait until you have the adjuster's estimate so you know the real gap. Borrow only for the uncovered portion, and read the terms for deferred interest that comes due all at once if the balance is not cleared in time. Never accept an arrangement where a loan, rebate, or so-called discount quietly absorbs your deductible; in Georgia, a contractor waiving or rebating a deductible is illegal. Robust Roofing offers roof financing for the portion insurance does not cover.