Is Hail Damage a Covered Event?

Hail can cause significant damage to your home, including your roof, windows, and even lead to costly water damage. According to CoreLogic data, hail incidents in the U.S. reached new records in 2023, with hail 2 inches or more in diameter striking 141 days of the year. Homeowners insurance typically covers hail damage, but there are important considerations to keep in mind.

Standard homeowners insurance usually covers your home’s structure and personal possessions against hail damage. However, coverage can vary based on your location. In high-risk areas, separate wind and hail coverage may be necessary, often provided by state-run insurance programs. These policies can be expensive, but with the average hail claim costing $12,913, the investment may be worthwhile.

Should You File a Claim for Hail Damage?

Filing a claim for hail damage can impact your insurance premiums and involve deductibles. Before filing a claim, consider the cost of repairs, your deductible, and the potential increase in premiums. If the repair costs are close to your deductible, it might be more cost-effective to pay out of pocket.

For example, if you have a $1,000 deductible and hail damage costs $12,913, insurance would cover $11,913, making a claim sensible. However, with a 5% deductible on a $250,000 home, insurance would only cover $413, leaving you to pay $12,500. Always review your policy and get repair estimates before deciding.

How Much Does Hail Damage Cost?

The cost of repairing hail damage varies based on the extent of the damage, your home’s size, and the materials used. Here are some average costs:

• Roof repair: $4,250 (range: $300 to $32,500)
• Full roof replacement: $5,890 to $12,700
• Concrete patio repair: $50 to $800
• Wooden deck repair: $860 to $3,400
• Storm window repair: $90 to $400 per window
• Mold remediation from water damage: $1,500 to $9,000

Tips for Paying for Hail Damage

If you prefer not to file an insurance claim, consider these alternative financing options:

Emergency Fund

Using your emergency fund can help you avoid interest charges and potentially qualify for contractor discounts. After repairs, adjust your budget to replenish your savings.

Home Equity Loan

A home equity loan allows you to borrow against your home’s equity, providing a lump sum with fixed monthly payments. While interest rates are lower than credit cards, your home is collateral, so failure to repay could result in losing your home.

Home Equity Line of Credit (HELOC)

Similar to a home equity loan, a HELOC offers a flexible line of credit using your home as collateral. You can borrow, repay, and borrow again until the draw period ends, but high payments and the risk of losing your home if you default are considerations.

Credit Cards

Credit cards can be an option, especially with introductory 0% APR offers. However, high interest rates and potential negative impacts on your credit score if you carry a balance are risks to consider.

Personal Loan

Personal loans typically have lower interest rates than credit cards and don’t require collateral. Fixed or variable interest rates and terms ranging from six months to seven years provide flexibility, but rates are generally higher than HELOCs or home equity loans.

Government Disaster Assistance

If your hail damage is part of a larger natural disaster, you may qualify for state or federal assistance. Visit the FEMA website or your state’s emergency management agency for more information.

The Bottom Line

To protect your home from hail damage, ensure you have the right insurance coverage. Sometimes, paying out of pocket for repairs is more financially sensible than filing a claim. Maintaining good credit can help you save on insurance premiums and loan APRs. For any mortgage service needs, contact O1ne Mortgage at 213-732-3074. Our team is here to help you navigate your options and find the best solutions for your home.