Roof insurance claim vs. paying cash: how to decide

Covered vs. not covered

Homeowners policies generally cover sudden, accidental damage such as hail or windstorms. They generally do not cover age, wear, or poor maintenance. Your policy is the final word, so read it or ask your agent.

Key policy terms

• Deductible: some policies have a separate (often percentage-based) wind/hail deductible.
• ACV (actual cash value) pays the depreciated value; RCV (replacement cost value) pays to replace, often with depreciation released after work is done.
• Code upgrade (ordinance or law) coverage may pay for items newer codes require.
• Filing deadline: policies set time limits for reporting damage.

When cash usually makes more sense

• Repair cost is near or below your deductible
• Damage is from age or wear
• You want to avoid adding a claim to your history

Red flags

• A contractor offers to "cover" or "waive" your deductible. This can be insurance fraud, and the Utah Insurance Department warns consumers about it. [VERIFY: link the Utah Insurance Department consumer guidance at https://insurance.utah.gov/]
• Pressure to sign a contract or assignment of benefits on the spot
• Payment demanded in full before work starts

Where to get help

The Utah Insurance Department takes consumer questions and complaints about insurers.