Does Homeowners Insurance Cover Siding Replacement?
Learn how your homeowner's policy addresses siding damage, from initial events to getting repairs approved.
Homeowners insurance safeguards a dwelling and personal belongings against various unexpected events. When a home’s siding is damaged, questions often arise regarding insurance coverage for replacement or repair. Whether homeowners insurance covers siding replacement largely depends on the specific cause of the damage and the details outlined within the individual policy.
Covered Causes of Damage
Standard homeowners insurance policies typically provide dwelling coverage for damage to a home’s structure, including siding, when caused by specific “perils” or events. These covered perils are generally characterized by their sudden and accidental nature. For instance, wind damage from severe storms, hurricanes, or tornadoes is a common covered peril, often tearing off, loosening, or cracking siding.
Hail damage also frequently falls under covered perils, as hailstones can cause noticeable dents, cracks, and punctures in siding materials. This type of impact damage is usually eligible for coverage. Fire and smoke damage, whether from a house fire or a nearby blaze, is another peril typically included in standard policies, covering the cost to repair or replace siding affected by flames or smoke residue.
Damage caused by falling objects, such as trees or other debris impacting the siding, is often covered. Intentional damage to siding inflicted by third parties, known as vandalism or malicious mischief, is also usually included in dwelling coverage. These instances are considered sudden and accidental.
Understanding Policy Coverage and Exclusions
While many perils are covered, homeowners insurance policies also contain specific exclusions that limit when siding replacement will be covered. Gradual deterioration, such as wear and tear, fading, or damage from the natural aging process of siding, is typically not covered. Similarly, damage resulting from a homeowner’s failure to maintain the property, like neglecting to clean gutters that then lead to water damage, is generally excluded.
Insurers also distinguish between cosmetic damage and functional damage. Cosmetic damage, which only affects the appearance of the siding without impairing its protective function, may not be covered, or coverage might be subject to specific policy language. Damage caused by pest infestations, such as insects or rodents, is usually excluded from standard policies. Additionally, perils like flooding and earthquakes are almost always excluded from standard homeowners policies and require separate, specialized insurance coverage.
The deductible is the amount a homeowner must pay out-of-pocket before the insurance company begins to pay for a covered loss. Typical homeowners insurance deductibles can range from $500 to $2,000, though they can vary. Some policies may also have percentage-based deductibles, particularly for wind or hail damage, which are calculated as a percentage of the home’s insured value.
The method of payout for siding replacement is determined by whether the policy uses Actual Cash Value (ACV) or Replacement Cost Value (RCV). ACV policies factor in depreciation for age and wear, meaning the payout will be less than the cost of new siding. Conversely, RCV policies pay the cost to repair or replace the damaged property with new materials of similar kind and quality, without deducting for depreciation, up to the policy limits. Homeowners should review their specific policy documents to understand these terms and their implications for potential claims.
Steps to Filing a Claim
When damage to siding occurs and appears to be from a covered peril, homeowners should begin by thoroughly documenting the damage. This involves taking clear photos and videos from various angles, including close-ups of specific damage like dents, cracks, or missing panels, and wider shots to show the overall extent. It is also important to note the date and time the damage was discovered and the likely cause. Homeowners should avoid making permanent repairs before an insurance adjuster has inspected the damage, though temporary measures to prevent further harm, such as covering exposed areas, are acceptable.
Next, contact the insurer promptly to report the incident and initiate the claim process. Homeowners should be prepared to provide their policy number, the date the damage occurred, and a brief description of the damage. After the initial notification, the insurance company will typically assign an adjuster to assess the damage. Homeowners should be present during the adjuster’s visit to point out all documented damage and ask any questions about the process or coverage details.
Obtain multiple detailed estimates from qualified contractors for siding replacement, itemizing material and labor costs, which can be submitted to the insurer to support the claim. After the adjuster’s assessment, the insurance company will issue a settlement offer. Review this offer carefully, ensuring it aligns with estimates and fully covers the repair or replacement scope based on policy terms. If discrepancies arise, negotiate with the insurer, providing additional documentation or estimates. Once an agreement is reached, proceed with repairs and submit final invoices for payment.