Siding Renovation: Insurance Impact

Whether or not new siding will change your insurance depends on the type of damage that occurred and the coverage you have. Homeowners insurance typically covers siding damage caused by perils named in the policy, such as extreme weather events, vandalism, and fire. However, it's important to note that everyday wear and tear, gradual fading, and damage due to policyholder negligence are generally not covered. When replacing siding, insurance companies may also run into challenges in finding matching siding, potentially resulting in mismatched siding on the home, which can impact its resale value.

Homeowners insurance and siding damage

Homeowners insurance is designed to protect your property, and it can be used to repair or replace damaged siding. However, it's important to note that insurance coverage for siding damage is not always straightforward and depends on several factors. Here are some key points to consider:

Covered Perils

Homeowners insurance typically covers siding damage caused by perils named in the policy. These perils can vary but usually include extreme weather events such as high winds, hail storms, tornadoes, and hurricanes. Other covered perils may include vandalism, damage from aircraft or vehicles, and in some cases, insect damage. If the damage to your siding is caused by one of these covered perils, your insurance company will likely cover the repairs or replacement.

Wear and Tear

It's important to understand that homeowners insurance does not cover siding damage resulting from normal wear and tear. This includes gradual fading of the siding's colour due to sun exposure, weathering over time, or a lack of proper maintenance. Insurance companies expect homeowners to perform routine maintenance and will not pay for repairs or replacement due to neglect.

Matching Siding

One common issue that arises with siding damage is matching the new siding to the existing siding on the house. If only a portion of your siding is damaged, it can be challenging to find matching siding, and insurance companies may not be able to locate an exact match. As a result, you may end up with mismatched siding, which can detract from the aesthetic and resale value of your home.

Insurance Claims Process

If you experience siding damage, the first step is to contact your insurance company and have them inspect the damage. They will determine if the damage is covered under your policy and estimate the cost of repairs or replacement. It's important to understand your policy's coverage limits, deductibles, and any exclusions before filing a claim. Keep in mind that you may need to pay a deductible, and the insurance company will only cover up to the policy's limits.

Choosing a Contractor

After understanding your insurance coverage, the next step is to find a reputable contractor for your siding replacement or repair. Get estimates from multiple contractors, research their qualifications, and ensure they are licensed, bonded, and insured. It's also important to read reviews and ask for references to ensure you receive quality workmanship.

Additional Considerations

When replacing siding, you may encounter additional costs not covered by insurance. For example, you may need to pay out of pocket for upgrades or higher-quality materials. Additionally, if you have actual cash value coverage for your dwelling, your insurer may not fully cover the cost of replacing all your siding, especially if the damage is partial. In this case, you may need to pay for some of the replacement costs yourself.

In conclusion, homeowners insurance can provide financial protection for siding damage caused by covered perils. However, it's important to understand your policy's limitations and exclusions, as well as the potential challenges associated with matching siding. By following the proper steps and working with a reputable contractor, you can navigate the insurance claims process effectively and restore your home's siding to its pre-damaged state.

Matching siding and insurance coverage

Siding is an important element of a home's exterior, protecting it from adverse weather and insulating it for optimal energy conservation. It also functions as the home's overall aesthetic. However, like any other part of your property, siding can get damaged. Since your insurance is designed to protect your property, you may want to turn to your insurance company for help with siding repair and replacement.

Homeowners insurance will typically cover damage to siding caused by a covered peril in the policy, such as extreme weather events like strong winds, hail, or storms. It may, however, become more complicated when your insurer needs to match the replacement siding to your existing siding. If only a small area of your siding is damaged, it can be challenging to find new siding that perfectly matches the existing siding on your home.

In some cases, insurance companies may try to convince homeowners to settle for siding that is "close enough" in terms of matching, but this can result in a mismatched exterior that detracts from the home's aesthetic and resale value. To address this issue, some states, such as Ohio, Kentucky, and Iowa, have introduced laws requiring insurers to replace all siding, even undamaged areas, with new siding if necessary to achieve a consistent appearance.

Additionally, some insurance companies have introduced matching coverage home insurance endorsements to their policies. Matching coverage means that your insurer will cover the cost of replacing undamaged siding to match the new siding after a covered loss. This option may cost a little extra per policy term, but it provides peace of mind and ensures a cohesive look for your home's exterior.

It is important to carefully review your homeowners insurance policy and understand the specific coverage, exclusions, and requirements regarding siding replacement. By doing so, you can make informed decisions and take the necessary steps to maintain the value and appearance of your home.

Insurance claims process for siding damage

If your home's siding has been damaged, you may be wondering if and how your homeowner's insurance can help cover the costs of repair or replacement. Here is a step-by-step guide to help you navigate the insurance claims process for siding damage:

• Review your homeowner's insurance policy: Before initiating any claims, it is crucial to understand the specifics of your policy. Familiarize yourself with the covered perils, exclusions, and any additional endorsements or riders that may be relevant to siding damage. Some common perils covered by insurance policies include hail, wind, fire, falling objects, vandalism, and water damage from a burst pipe. However, it's important to note that coverage may vary depending on your specific policy and the extent of the damage.
• Document the siding damage: When siding damage occurs, thorough documentation is essential for a successful insurance claim. Take clear photographs and videos of the affected areas from different angles and distances, including the date and time. Detailed notes describing the damage can also be valuable evidence during the claim process.
• Contact your insurance company: Reach out to your insurance provider as soon as possible to report the siding damage and initiate the claims process. They will guide you through the necessary steps and may send a claims adjuster to inspect the damage.
• Provide relevant information: During your interaction with the insurance company, be prepared to provide all the necessary information, including the documentation you gathered, a detailed description of the incident, and any relevant policy information. Submit the claim promptly to start the assessment and resolution process.
• Work with a claims adjuster: After filing your claim, the insurance company will typically assign an adjuster to assess the siding damage. Schedule a visit for the adjuster to evaluate the extent of the damage and determine the claim payout amount. Provide the adjuster with all relevant documentation, including photographs, videos, and notes, to ensure a transparent and fair assessment.
• Obtain multiple repair or replacement quotes: While waiting for the adjuster's assessment, obtain multiple quotes from reputable siding contractors. These quotes will provide accurate estimates for the repair or replacement costs, which can be used as a basis for negotiating a fair settlement with your insurance company.
• Negotiate with the insurance company: If you believe the initial settlement offer is inadequate, don't hesitate to negotiate. Present the evidence gathered during the documentation phase and emphasize the importance of restoring your home's siding to maintain its structural integrity and curb appeal. A siding replacement contractor can assist in providing evidence and supporting your case for necessary repairs.
• Understand depreciation and recoverable costs: When dealing with siding damage claims, consider the concept of depreciation. Most insurance policies initially pay out the actual cash value (ACV), which takes into account the reduction in value due to age and wear. Once the repairs or replacements are completed, you may be eligible to claim the recoverable depreciation, allowing you to recover the remaining costs needed to fully restore your siding.
• Address matching siding concerns: In some cases, finding exact matches for your existing siding materials can be challenging, especially if they are no longer available on the market. Discuss this issue with your insurance company and explore alternative options. Some insurance companies have introduced matching siding insurance, which provides a better deal for homeowners by reimbursing them for replacing undamaged siding to ensure a cohesive appearance.
• File the claim and initiate repairs: Once you have gathered all the necessary information and documentation, submit the claim to your insurance company. Pay any required deductibles and wait for their approval. After approval, your insurance company will coordinate with the selected contractor to initiate the siding repair or replacement work.
• Receive reimbursement: After the siding work is completed and all the necessary paperwork has been filed, you will receive reimbursement from your insurance company for the covered costs.

Remember, it is essential to review your homeowner's insurance policy carefully to understand the specific coverage and exclusions related to siding damage. By following these steps, you can effectively navigate the insurance claims process for siding damage and restore your home's siding to its original condition.

Choosing a contractor for siding replacement

When it comes to choosing a contractor for siding replacement, there are several factors to consider to ensure you get a reliable and reputable contractor who will complete the work to a high standard.

Firstly, it is important to understand your siding needs. The type of siding you plan to have installed will make a big difference in how it performs, what it looks like, and how long it will last.

Once you know what you want, it's time to start researching contractors. Ask trusted sources, such as friends, family, and neighbours for recommendations, or contact your local Better Business Bureau. It is also worth checking online reviews on third-party websites like Google, Facebook, HomeAdvisor, Angi, and Trustpilot. When checking reviews, look for qualities that matter to you, such as the type of siding installed, quality of customer service, the timeline, and cleanliness of the worksite.

When you have a shortlist of potential contractors, it is important to ask them some key questions. These should include:

• How long have you been in business?
• How much experience do you have with siding replacement?
• Can you provide a list of references?
• Can you provide proof of insurance for personal liability, worker’s compensation, and property damage coverage?
• Can you provide a written quote or estimate?
• Can you provide a detailed, written contract that includes start and end dates, materials to be used, payment schedule, and how to handle changes or problems?
• What warranties do you offer on materials and workmanship?

It is also important to avoid anyone who requests payment in full upfront or pressures you to sign a contract immediately. A reputable contractor will ask for a down payment and provide a payment plan with specifics about materials and labour.

Finally, trust your instincts. If something feels off about a contractor or you feel uncomfortable, there is probably a good reason, so it is best to look elsewhere.

Understanding insurance coverage and costs

Homeowners insurance is designed to protect your property and typically covers damage to your siding under dwelling coverage. However, it is important to note that insurance coverage and costs can vary depending on several factors, including the type of damage, the extent of the damage, and the specifics of your policy.

Types of Damage Covered

Homeowners insurance policies usually cover siding damage caused by perils specifically named in the policy. These perils can vary but typically include extreme weather events such as high winds, hail, storms, and hurricanes or tropical storms. For example, if a tornado rips off your siding or hail causes dents and dings, your insurance policy will likely cover the repairs or replacement.

In addition to weather-related damage, homeowners insurance may also cover siding damage resulting from non-weather-related events such as vandalism, malicious mischief, aircraft damage, and vehicle damage.

Factors Affecting Coverage and Costs

While homeowners insurance covers many types of siding damage, there are some important factors to consider that can affect coverage and costs:

• Wear and Tear: Insurance companies generally do not cover siding damage resulting from normal wear and tear, gradual fading due to sun exposure, or a lack of proper maintenance. It is the homeowner's responsibility to take care of regular maintenance and repairs to prevent issues.
• Matching Siding: One common issue that arises is the challenge of matching new siding to the existing siding on your home, especially if it has faded or weathered over time. Some insurance companies may try to find a “close enough” match, but this can detract from the home's aesthetic and resale value. To address this, some states have introduced laws requiring insurers to replace all siding, even undamaged areas, to ensure a proper match. Additionally, some insurance companies offer matching coverage endorsements, which provide additional coverage for replacing undamaged siding to match the new siding.
• Deductibles and Reimbursements: Depending on your policy, you may be responsible for paying a deductible before receiving reimbursement for siding replacement or repair. It is important to understand the amount of your deductible and whether it applies to your specific claim.
• Policy Language and State Laws: The specific language of your insurance policy and the laws of your state can impact how siding replacement is covered. In some cases, insurers may only need to restore the damaged portion of the siding, while in other cases, they may be required to replace all the siding to maintain the home's value.
• Actual Cash Value Coverage: If you have actual cash value coverage for your dwelling, your insurer may be less willing to replace all your siding, especially in cases of partial loss. This type of coverage takes into account depreciation, resulting in a smaller payout if your siding is older and has diminished in value over time.

Steps to Take for Siding Replacement or Repair

If you need to replace or repair your siding, here are the recommended steps to take:

• Contact Your Insurance Company: Reach out to your insurance provider first, before contacting a siding replacement company. They will send a claims adjuster to inspect the damage and estimate the cost of replacement or repair.
• Understand Your Coverage: Determine the specifics of your coverage, including any deductibles, reimbursement amounts, and the bounds of your policy. This information will help you make informed decisions about your next steps.
• Find the Right Contractor: Based on the extent of the damage and your coverage, decide whether you need a siding replacement or repair. Research and select a reputable contractor who is licensed, bonded, and insured in your state. Get estimates from multiple contractors and choose the one that best fits your needs and budget.
• File a Claim: Work with your chosen contractor to obtain an estimate for the cost of replacement or repair. Submit this estimate, along with any other necessary documents, to your insurance company to file a claim.
• Pay the Deductible (if applicable): If required, pay the deductible amount to your insurance company. They will then approve the claim and arrange for payment to the contractor once the work is completed.
• Begin the Work: The contractor can now begin the siding replacement or repair based on the agreed-upon terms.
• Receive Reimbursement: After the work is completed and all the necessary paperwork is filed, you will receive reimbursement from your insurance company for the covered expenses.

Frequently asked questions