Home Hail Damage

How do you feel when you hear the weather forecaster use the words “chance of damaging hail”? 

If  ”damaging hail” is on its way, what could it damage?

That’s right. Your roof. Your chimney. The outdoor amenities your family enjoys like a pool, an outdoor kitchen, and a playhouse…even your garden shed.

Does your homeowner’s insurance cover damaged caused by hail? 

Are you sure? 

As we know, Minnesotans regularly deal with harsh weather realities, and yes, hail damage is a big factor here in Minnesota.
Perhaps you‘ve had to report damages from past storms– or maybe you’ve been one of the lucky ones who has escaped hail storms unscathed.

Could you be so lucky again?

Homeowners Insurance and Hail

In general, homeowners insurance provides coverage for your home’s structure in the event of hail damage – but each insurance company is different, and coverages can differ based on where your home is located, too. 

For example, some companies might limit coverage for hail damage.  

Minnesota Pro Tip #1: Be sure you know how YOUR insurance company treats hail damage claims. What happens if you have multiple hail damage claims within a period of time? 

Coverage Type Matters

Some insurance companies will offer you an “actual cash value” policy or possibly a choice between an actual cash value policy and a replacement cost policy. In most cases, the actual cash value policy will have a lower premium.

There’s a reason for that.

If it will cost $25,000 to replace your 10-year old roof after hail damage, and you’ve got a $2,500 deductible, a replacement cost policy would pay out $22,500 ($25,000 minus the $2,500 deductible). But an actual cash value policy is going to DEPRECIATE the value of your roof by the amount of time it has already been installed. Assuming your roof is rated as a 20 year roof and the value of your roof is depreciated by half over 10 years, then the claim may pay out $10,000 only ($25,000 divided by half = $12,500, then subtract the $2,500 deductible).

That’s a huge difference – and one that could leave you making a huge payment out of your pocket to recover from the hail storm that damaged your roof. 

Federated offers a replacement cost policy¹. Your agent can help you understand the differences for your specific situation so that you can weigh the risks for yourself and determine what is best for you.

One thing that will NOT be best for you is ignoring roof damage, as it can cause more serious damage to interior walls, ceilings, and siding over time. So as you weigh your options, be sure you can cover your deductible and any other out-of-pocket expenses if – and when - you have an incident – so it doesn’t get MORE costly as time goes on.

Minnesota Pro Tip #2: Evaluate your capacity to handle big dollar risks before deciding to go with an actual cash value policy. Replacement cost policies may have higher premiums, but may be well worth it in terms of reduced financial risk in the event of another damaging storm.

Keep Your Agent Informed

In the beautiful Minnesota summers, many of us spend a lot of time outdoors, and improving our outdoor living spaces has become a big home improvement trend.

Whether a patio or a pool, a playhouse or garden shed, a screened-in porch, or perhaps an upscale outdoor kitchen, any improvements you make to your property merit a conversation with your insurance agent. 

But most people don’t remember to make that call. 

Honestly, that’s why our agents do annual check-ins with all of our policy holders. After all, the last thing you want is a hail storm to take out your just-installed $10,000 outdoor kitchen and then find out you did not have enough coverage for these improvements and the loss will not be covered– right?

And, while we can’t take responsibility for making sure your policy is always up-to-date with any property improvements, we do our best to make it easier on you to let us know of any changes that could factor into your policy.

Minnesota Pro Tip #3: Ultimately, it’s your responsibility to make sure any changes to your property are reflected, if necessary, in your homeowner coverage. If your agent doesn’t call you annually, consider putting an “update my insurance” tickler into your calendar at least once a year.

Assess the Damage

What happens if you get hail damage that impacts the appearance of your home but not function? Think about dimpled or dented siding or flaked paint – no functional damage but it looks bad. This is considered cosmetic damage and you may want to discuss with your agent whether this type of damage is covered by your policy.

You could also get hail storm damage that you end up NOT filing a claim for. In some cases, damage can be slight, and the amount of the claim doesn’t exceed your deductible amount. In this case, you may consider repairing the damage yourself without filing a claim.

Getting a quote from a reputable repair company can help you assess the damage and determine whether it’s a claim-to-be-made or a job to handle on your own.

Minnesota Pro Tip #4: Understand the nuances of your policy, including how cosmetic damage is covered, your deductible amount, time limits for filing claims, etc. A regular thorough review with your agent to explore your possible Minnesota scenarios is highly recommended.

1 Policy limits, deductible, conditions, and exclusions apply

Start a Quote Online or Contact Us. We look forward to hearing from you.

This article is for general information only and should not be considered an offer of insurance or legal or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all risk of loss. Claims illustrations herein are hypothetical and for discussion purposes only. Coverage will be determined based on the facts of the claim and the terms of your policy, if approved for issue. Policy limits, deductibles, conditions, and exclusions may apply. Your eligibility and premium will depend on the application of Federated’s underwriting guidelines to your unique circumstances including, but not limited to, your personal information, loss history, location, and coverage. The information herein is current as of September 2022 and is subject to change. Coverage not available in all states. Qualified counsel should be sought with questions specific to your circumstances. Policies are underwritten by Federated Mutual Insurance which is licensed in Minnesota.