The cause of the damage: Hail
In May 2022, a severe thunderstorm and large hail damaged the roof, siding, and windows of my home in Minnesota. The storm was like many others we saw roll through, and it wasn’t until a neighbor who sells windows pointed out the damage to our house that we realized the extent of the damage.
A walkaround of the exterior revealed damage to the windows and the siding, so the roof was likely in bad shape, too.
Hail can cause severe damage to the siding, shingles and cladding around the windows. While it’s sometimes cosmetic, the damage can accumulate and worsen over time. Once the roof is damaged, it’s more susceptible to future storms, and failing to repair it could result in leaks. We called our insurance company.
The homeowners insurance claims process
A claim was filed for the damage to the roof, siding, windows and garage door. The inspector came in person and reviewed the damage, using a drone to survey the roof.
The adjuster immediately agreed to replace the roof, but the siding and windows became points of contention.
Here’s a breakdown of how the adjuster initially appraised each damaged part of the house and how we eventually got the insurance company to cover all of the damage.
The roof and gutters
The roof had suffered extensive damage, and the insurance company agreed to replace it. The gutters had also been damaged, and again, the insurance company did not argue.
We were issued an initial check to start work on the roof while negotiating the rest. As is common with replacement cost coverage, the insurance company issued a check for the depreciated value of the roof and gutters. This would be used to pay the contractor’s deposit, and the insurance company would pay the remainder (what’s known as recoverable depreciation) once the work was done and the final cost was determined.
This is where we paid our deductible. In addition to the check amount from the insurance company, we wrote a personal check to the contractor for $2,500, the deductible on our home insurance policy.
We also decided to pay out of pocket to upgrade the roof to hail-resistant shingles and the gutters. The cost was a few thousand dollars. Within a few months, the roof work was completed.
The siding
The siding damage mostly affected two sides of the house, but the siding used when the home was built was no longer available. To avoid replacing all of the siding, the insurance company required us to show that the “similar” siding options that were available would not match.
Two big boxes of siding were sent to our house. We were told that this was the only way to order them. So we had to move them into our garage to avoid damage while we waited for the contractor to come to see if they would match. When that eventually happened, the photos were sent to the insurance company, which finally agreed that they didn’t match. Again, we had to store the siding samples until they could retrieve them.
The insurance company then requested that we cut off a piece of the old siding and send it to them, which we did. And again, we waited.
Finally, we got approval to replace the siding in full and received another check. This process, including delays due to contractor issues, took through the summer of 2023, more than a year after the hail storm.
We finally ordered new siding, again paying out of pocket to upgrade to cement board siding.
The siding work was finally completed in November 2023.
The windows and garage door
The insurance company initially agreed to pay only for the casings. However, like the siding, the casing on our windows is no longer manufactured, necessitating replacement.
The insurance company also agreed to cover only a small number of windows, arguing that hail damage to several other windows could not have been caused by the same storm due to its direction.
In keeping with matching laws, we pushed for the insurance company to replace all of the windows that were within sightlines of the damaged ones.
We finally got approval to replace most of the windows in late 2023. Along with the window claim, we agreed to replace the garage doors and one of the home’s patio doors. At this point, we received a third check, the final check before the company would pay our recoverable depreciation.
The claim total
When all was said and done, the total payout on the claim was over $200,000, a far more significant sum than the amount we had paid in premiums during the six years we have owned this house.
We paid the $2,500 deductible and several thousand dollars for our chosen upgrades along the way.
What happened to our home insurance rate
On the renewal after the claim, our rate increased by more than $1,500 yearly. That’s a big increase, but we were in for a pleasant surprise.
The installation of the new roof and our upgrade to the hail-resistant shingles resulted in a premium drop of about the same amount on the following renewal.
With all the work completed so far, along with a new deck we paid for out of pocket, our home's replacement cost went up significantly. Our insurance rate, however, is still lower than right after the claim, thanks to the new and upgraded exterior that is more hail-resistant.
Although filing a big claim like this raises a red flag to insurance companies, our decision to upgrade our home to fortify it against future hail damage balanced some of that. It also increased our home’s value, not just for insurance purposes but also on the market.
The takeaways: Lessons in the aftermath of a major home insurance claim
Having been in the insurance industry for a long time, I was prepared to face a long process and a lot of back and forth with the insurance company. I wasn’t prepared for the added difficulty of dealing with contractor delays and the actual length of the entire process.
Certainly, there are claims where the claim is filed, a check is written, and everything is neat and tidy. With damage to multiple parts of a structure and a home for which matching building materials were no longer available, this was not one of those claims.
Here are the main takeaways from my experience:
- Be prepared to be patient. If you’re going into a significant storm damage claim, prepare to be patient. There are multiple steps, hoops to jump through and checks that come in over time. You’ll be dealing with this claim for months if not years.
- Stand your ground. Be prepared to push back if you think the insurance company is not properly covering the damage. Know your rights and your coverage.
- Update your policy after the claim. Providing your insurance company with updated information on the upgrades to your home may increase your rates, but it could also earn you discounts.
In the end, given the results regarding our home’s value and insurance rates, the long claim process was well worth the effort.