When it's time to replace your roof, it's important to explore both financing and insurance options. Homeowners should assess their budget, research affordable payment methods, and compare quotes from reputable roofers. Some may use savings, while others might opt for loans or credit. Storm damage? Insurance claims could help offset expenses. Understanding all the options can make the roofing project more manageable and prevent unexpected financial strain.
Is it time to replace your roof?
"Homeowners can determine if their current roof needs an upgrade or repairs by having a roof inspection done by a certified roofing professional to identify any visible damage, such as missing, cracked, or curling shingles," shares Mary Mokris, consumer finance and payments manager at GAF. "Water leaks, stains, or spots on the ceiling are other clear indicators that a roof needs repaired or replaced."
She adds, "In addition, any sagging on a roof suggests structural issues, which needs immediate attention by a professional roofing company to avoid significant damage to both the exterior and interior of a home. They should also be aware of the climate in their area, their budget, and the age of their current roof. If a roof is more than 20 years old, it is likely nearing the end of its lifespan, and it might be time for an upgrade or full replacement."
How can homeowners get their insurance company to cover a new roof?
Homeowners need to review their homeowners insurance policy to see if roof replacement is covered. Most policies do include protection against storm damage caused by severe weather like hail, wind, or falling debris. If the damage is sudden, caused by peril, and not due to your own neglect, filing a roof insurance claim can help cover repairs or replacement.
- Document the damage with photos and videos from the ground. Don't try to scale onto your damaged roof.
- Schedule an inspection with a qualified roofing contractor. Have them take additional photos from angles you couldn't see from ground-level. From destroyed roofing materials to surrounding damage to gutters, siding, venting, and flashing, it's important to paint a full picture of your roof damage.
- Contact the insurance company to begin the claims process. If approved, the policy may cover part or all of the roofing project, minus the deductible, making roofing costs easier to manage.
Common Ways to Pay For a New Roof
As with any major financial purchase, homeowners should carefully consider their roof financing options. "The exact process will vary from homeowner to homeowner as there is no one way that is 'best' to finance a roof," highlights Mokris. "It depends on each homeowner's financial situation and their ability to afford the interest and principal payments of the financing method they choose. A few popular choices include contractor financing, credit cards, HELOC (Home Equity Line of Credit) and Home Equity loans, and personal loans."
1. Contractor Roof Loans
Understanding that a replacement roof is a huge expense for many homeowners, manufacturers have stepped up to help. "At GAF, we work with contractors to provide a variety of financing options to homeowners so they are informed and can choose the best option for their financial situation. GAF SmartMoney is a complete paperless payment solution that securely accepts virtually any form of payment and provides flexible financing options across a range of lenders, including GreenSky, Wells Fargo and Synchrony."
"Simplicity, speed, and competitive loan rates are a few of the perks of contractor financing," shares Mokris. "Depending on the contractor, the financing application process typically takes a matter of minutes and can often be done online or in the home. Contractors can often provide a wide range of interest rates, monthly payment plans, loan terms (typically between 1-15 years), and fees. Some contractors even offer a zero-interest period on loans."
2. Credit Cards
Credit cards are also popular, if the line of credit is sufficient and the homeowner is intent on using the cards to earn rewards. "For homeowners interested in paying back the money in the short term, consider using a credit card with a 0% introductory rate to avoid interest," recommends Mokris. Pay attention to offers you receive and note the terms of the promotional period, including any variable changes to annual percentage rates.
3. Home Equity Loans and Lines of Credit
Home Equity Lines of Credit (HELOC) and Home Equity loans are great options for homeowners who have built up equity in their homes. "Both options allow the lender to use their home as collateral against the money borrowed for home improvement projects," notes Mokris. "A key benefit for homeowners with both options is that the financial institution can often access a better interest rate over the other forms of financing." This form of loan allows you to pace the project cost over time, just like monthly mortgage payments.
4. Personal Loans
Though loan rates and terms will vary depending on how much the homeowner wants to borrow (as well as their credit score, proof of steady income, and other factors), personal loans remain an option. "Before signing on for a personal loan, homeowners should get clarity on repayment terms and determine if the loan is secured or unsecured," suggests Mokris. "Secured loans need collateral (such as your car or home) as insurance for loan repayment."
She adds, "Personal loan interest rates are typically higher than other financing options and may have smaller loan sizes, so homeowners may pay more to borrow the same amount of money and/or the loan may not cover the full cost of the repair."
Warranties and Guarantees For Your New Roof
Roofing warranties and guarantees vary based on the product you choose, so remember to look closely at your options and compare. They generally cover repairs or replacements for specific types of damage, which are outlined in their policy agreement. "Homeowners should carefully review their policies to understand their coverage limits, deductibles, and any exclusions," notes Mokris. "It's important to know whether the policy is an Actual Cost Value (ACV) or Replacement Cost Value (RCV) policy, as RCV policies cover full replacement costs while ACV only covers the depreciated value of the roof at the time of loss."
She adds, "Additionally, home warranties may also offer limited roof coverage, typically for leaks or normal wear and tear."
In some cases, it might be a reason to re-evaluate your insurance coverage itself, or prepare for a Plan B option. "It should also be noted that homeowners who have a large deductible or an ACV policy could still end up paying a significant portion of their roof’s cost, even with insurance," shares Mokris. "In these cases, contractor financing could help them cover the cost quickly, especially in emergency or loss situations."
What advice would you give to homeowners upgrading their roof this year?
"My advice to homeowners is to explore all financing options and choose the one that best suits their current and future budget and roofing needs, whether it’s financing a roof replacement project or roof repairs," notes Mokris. "Financing can also help if unexpected and out-of-pocket expenses arise, especially as home insurance and coverage for storm restoration continues to change across the country."
What steps should homeowners take when filing a roof insurance claim?
- To file a claim for roof replacement, first assess the damage and gather evidence, including photos and reports from a licensed roofing contractor.
- Next, they should review their homeowners insurance policies to understand coverage details and deductibles.
- After contacting their insurance company, an adjuster will inspect the roof to determine eligibility.
- If the claim is approved, the homeowner will receive funds based on the policy type—either Actual Cash Value (ACV) or Replacement Cost Value (RCV).
- During the roofing project, keeping records of all repairs and communications can help with any disputes or follow-ups.
What if an insurance claim for roof replacement is denied?
If a roof insurance claim is denied, homeowners should review the insurance policy to understand the reason. Sometimes, claims are rejected due to insufficient documentation, pre-existing damage, or policy exclusions. In these cases, requesting a second inspection or hiring a public adjuster for an independent evaluation may help.
If the denial stands, homeowners can explore other financing options for roofing repairs, such as contractor financing, home equity loans, or personal loans. Keeping up with regular roof maintenance and addressing minor issues promptly can help prevent future claim denials due to neglect.
