Where does homeowners insurance fall short on hail damage?
Short answer. Hail is a covered peril on standard homeowners policies, but six things commonly shrink the payout: a percentage wind and hail deductible, actual cash value or a roof payment schedule on older roofs, a cosmetic damage exclusion, the wear and tear exclusion, prior unrepaired damage, and late reporting. Knowing which ones are in your policy tells you what a hail claim will really pay.
The six pressure points
- Percentage deductibles. 1 to 2 percent of Coverage A is common, meaning several thousand dollars before payment. See percentage deductibles.
- Age-based roof settlement. An actual cash value roof or a payment schedule pays a shrinking share as the roof ages, and the difference is not recovered after replacement.
- Cosmetic exclusions. Dents that do not affect function are excluded, which hits metal roofs, gutters and siding hardest; see cosmetic damage.
- Wear and tear. Adjusters may attribute marks on an aging roof to weathering rather than hail.
- Prior damage. Hail damage you were paid for and did not repair will not be paid again.
- Late notice. Waiting months makes it harder to tie damage to a storm and can breach the policy's prompt notice condition.
Where homeowners hold the advantage
- Functional hail damage on a replacement cost policy is paid at full replacement cost once the work is done.
- The adjuster's first estimate can be supplemented with evidence.
- Disputes over the amount can go to appraisal, and handling problems can go to the Georgia Office of Insurance and Safety Fire Commissioner.
Before the next storm
Read your declarations page, note which of the six apply, and ask your agent about options. Impact-resistant shingles reduce functional damage and may earn a premium credit, though some carriers pair that credit with a cosmetic exclusion. Our claim denied page explains what to do when one of these terms is used against you.