The paperwork that comes with homeowner's insurance can be time-consuming. How many homeowners enjoy the process? You're probably the type of homeowner who doesn't want this. You're probably the type of homeowner who thinks that the actual cash value sounds more impressive on the insurance paperwork than it is. Most homeowners simply sign insurance paperwork out of obligation. However, if you didn't read the fine print on your homeowner's insurance, it could become a liability.

What does the fine print say?

Insurance policies have actual cash value. You might be thinking actual cash would be significant. But here's the catch: real cash means market value. In the case of a claim, this could be disastrous for a homeowner's budget. If your roof is seriously damaged and needs to be replaced, your insurance company might only be responsible for the market value of the roof before it was damaged. Let's take a closer look at what that means:

Actual Cash Value Explained

Let's imagine that a massive storm has just plowed through North Carolina, leaving behind a trail of hail damage. As a result of the damage, your roof was one of the worst hits in your neighborhood. Your insurer agreed it needed to be replaced. Your insurance covers the whole $12,000 cost of the new roof, so you should be covered.

In a sense, you're only protected up to a certain point with Actual Cash Value. Suppose that your roof was in pretty good shape before the hail damage occurred. The only problem is that it was 15 years old, which is an older roof for most homeowners. There was a lot of wear and tear on it, so it wasn't worth $12,000. It was probably worth $4,000; that's its actual cash value: $4,000. As a result, the insurance company only must pay $4,000 for your new roof instead of $12,000 as initially anticipated.

Replacement Cost: The Insurance Coverage You Want

Taking the example above, you need to replace your roof, and it will cost $12,000 to do so. Luckily, your insurance policy covers replacement costs, so no matter what the price is, you will be covered. It is your insurance provider's responsibility to cover all the costs associated with replacing your roof, regardless of wear and tear on it. If it needs to be returned for some reason (such as hail damage), your insurance provider should cover all the costs associated with the replacement.

Charlotte Roofing Specialists have positioned themselves as a reliable choice for those in need of roofing services in the Charlotte area. Their commitment to local operation means that they contribute positively to the local economy while providing personalized service to their clients​​​.

Camden Roofing Construction understands the hassles associated with handling insurance paperwork. No matter how good your insurance policy is, it can be challenging to get the coverage you need. With our insurance specialists, you will be able to get the coverage you need. They will provide you with proper guidance about the paperwork and even try their best to provide you with your desired coverage by working closely with the insurance provider.

For more information, contact Camden Roofing Construction, LLC in Charlotte and Raleigh, NC, at 919-729-5050.