Caleb Meriwether, Haven Insurance Partners, visits with Dan Reaves, host of ‘The Dan Reaves Show,’ each Wednesday at 3:30 p.m., to discuss all things insurance.

AWWW HAIL

When buying your first home, understanding insurance terms can help you protect your investment, especially regarding hail damage. Hail insurance is typically part of your homeowner’s policy, covering repairs or replacements of your home’s roof, siding, windows, and other areas damaged by hailstorms.

One crucial concept is Actual Cash Value (ACV). ACV coverage pays the current value of damaged property, accounting for depreciation due to age and wear. For example, if your 10-year-old roof is damaged by hail, ACV coverage pays only what the roof is worth today, not what it would cost to replace it entirely. As roofs age, this often means lower payouts.

Alternatively, Replacement Cost coverage reimburses you for the full cost to replace damaged property with similar materials at current market prices, regardless of the item’s age or condition. Though usually more expensive than ACV policies, replacement cost coverage offers stronger protection, ensuring you won’t have to pay significant amounts out-of-pocket after a hailstorm.

Another important term is the wind/hail deductible, separate from your standard policy deductible. Instead of a flat fee, wind/hail deductibles are often a percentage (usually 1-5%) of your home’s insured value. For instance, if your home’s insured value is $200,000 with a 2% wind/hail deductible, you’d pay the first $4,000 in repair costs from hail damage before insurance coverage begins.

As a first-time homeowner, selecting the right coverage—understanding the differences between ACV, replacement cost, and wind/hail deductibles—ensures you have sufficient protection without unexpected costs after a hailstorm. Always carefully review policy details and consult your insurance agent to choose the best coverage for your new home.

(PHOTO: Caleb Meriwether)