Creating the Perfect Homeowners Insurance Policy
Your homeowners insurance policy is one of the most important protections you have—but many homeowners don’t fully understand what their coverage actually includes until they need to file a claim. Creating the right policy isn’t about choosing the cheapest premium; it’s about ensuring your home can be properly repaired or rebuilt after damage.
Below are the three critical elements every homeowner should review when creating or updating their insurance policy.
1. Choosing the Right Deductible Amount
Your deductible is the amount you pay out of pocket before insurance coverage applies. While a higher deductible often lowers your monthly premium, it can also create financial stress when unexpected damage occurs.
What to consider:
Can you comfortably afford the deductible if a claim happens?
Is your deductible a flat amount or a percentage of your home’s insured value?
Higher deductibles may save money short-term but can delay necessary repairs
A balanced deductible ensures you’re protected without putting unnecessary strain on your finances when storm damage or roof issues arise.
2. RCV vs. ACV: Why Replacement Cost Value Matters
One of the most common—and costly—mistakes homeowners make is not understanding whether their policy covers Replacement Cost Value (RCV) or Actual Cash Value (ACV).
Replacement Cost Value (RCV) covers the full cost to repair or replace damaged property without deducting depreciation.
Actual Cash Value (ACV) factors in depreciation, often leaving homeowners responsible for a significant portion of repair costs.
Why RCV is essential:
Roofing materials depreciate quickly
ACV policies can result in large out-of-pocket expenses
RCV ensures your roof can be replaced with like-kind materials
For major components like roofing, RCV coverage is one of the most important protections you can have.
3. Code Coverage / Law & Ordinance: The Coverage Most Homeowners Miss
Building codes change over time, and older homes are often not up to current standards. Law and Ordinance coverage helps pay for required upgrades during repairs or replacement after a covered loss.
This coverage helps with:
Updated building codes
Safety requirements
Structural improvements required by local regulations
Without this coverage, homeowners may be forced to pay thousands out of pocket just to meet current code requirements—even after a claim is approved.
Why These Coverages Matter for Your Roof
Your roof is one of the most expensive systems on your home. Without the right insurance coverage, storm damage or wear-related failures can quickly turn into a financial burden.
A well-structured policy ensures:
Proper roof replacement, not patchwork repairs
Compliance with current building codes
Minimal out-of-pocket expenses during a claim
Let the Experts Help You Prepare
At Savage Roofing, we work with homeowners every day who are navigating insurance claims—both approved and denied.
While we don’t sell insurance, we help homeowners understand their policies, identify gaps in coverage, and prepare before damage happens.
If you’re unsure whether your current policy truly protects your home, now is the time to review it.
Contact Savage Roofing today for a complimentary roof inspection and policy review guidance.
Being prepared today can save you thousands tomorrow.
