Does Your Home Insurance Actually Cover Hail Damage? What Midwest Homeowners Need to Know
July is peak storm season in Illinois and Indiana – and most homeowners find out too late that their policy isn’t what they thought.
Every summer, thousands of homeowners across the Midwest walk outside after a storm to find dented gutters, cracked siding, and a roof full of dimples. The first call they make is to their insurance company. And too often, the answer they get is not the one they expected.
If you live in Illinois or Indiana, understanding how your homeowners policy handles severe weather – especially hail – could save you thousands of dollars and a lot of frustration.
Why July Is the Most Dangerous Month for Your Home
The Midwest sits in one of the most active severe weather corridors in the United States. July brings the peak combination of heat, humidity, and atmospheric instability that produces the storms capable of generating large hail, high straight-line winds, and tornadoes.
Hailstones the size of a quarter – just one inch in diameter – are large enough to cause significant damage to roofing shingles, gutters, siding, and HVAC units. Storms producing golf ball-sized hail (1.75 inches) are not uncommon in both states and can cause damage that runs well into the tens of thousands of dollars on a single home.
The problem is not just the storms. The problem is the gap between what homeowners assume their policy covers and what it actually pays out.
What Most Homeowners Policies Cover (And What They Don’t)
A standard homeowners insurance policy – an HO-3 in most cases – does cover hail and wind damage under the “dwelling coverage” section. That part is good news. But there are several important details that can dramatically affect how much you actually receive after a claim.
The Deductible Problem
Many policies in Illinois and Indiana now include a separate wind and hail deductible, which is different from your standard deductible. While your regular deductible might be $1,000, your hail deductible could be 1% to 2% of your home’s insured value. On a $300,000 home, that means you are responsible for the first $3,000 to $6,000 out of pocket before your insurance pays anything.
A lot of homeowners do not realize this until they are sitting across from an adjuster after a storm.
Actual Cash Value vs. Replacement Cost
If your policy pays out on an Actual Cash Value (ACV) basis, your claim settlement will be reduced for depreciation. A 10-year-old roof that costs $15,000 to replace might only pay out $7,000 or $8,000 after depreciation is applied. Replacement Cost Value (RCV) coverage pays what it actually costs to replace the damaged item with new materials – a significant difference.
What Is and Is Not Covered
Most standard policies cover:
Roof damage from hail and wind. Siding, gutters, and exterior structures. Windows broken by storm debris. Personal property damaged inside the home if the structure is breached.
Most standard policies do not cover:
Flooding caused by heavy rainfall (that requires a separate flood insurance policy). Damage from poor maintenance or pre-existing wear. Vehicles (those are covered under your auto policy’s comprehensive coverage).
After a Storm: What To Do
If your home is hit by a severe storm, the steps you take in the first 24 to 48 hours matter.
- Document everything before any cleanup. Take photos and video of all visible damage from multiple angles. Include wide shots and close-ups.
- Make temporary repairs to prevent further damage. Tarping a damaged roof or boarding a broken window is reasonable and typically reimbursable. Keep all receipts.
- Do not sign anything from a contractor before talking to your agent. Storm chasers – contractors who follow severe weather events – often pressure homeowners to sign assignment of benefits agreements that can complicate or reduce your claim.
- Contact your insurance agent promptly. Most policies require timely reporting. Waiting too long can give an insurer grounds to question the claim.
Is Your Coverage Keeping Up With Your Home’s Value?
Home construction costs have increased significantly in recent years. If your policy was written three or four years ago and you have not reviewed it since, there is a real chance your dwelling coverage limit no longer reflects what it would actually cost to rebuild your home today.
This is one of the most common – and most preventable – problems we see after a major loss.
Talk to Someone Who Knows This Market
Storm season does not wait for a convenient time. The best time to review your policy is before the damage happens, not after.
Ready to make sure your coverage is ready for whatever this summer brings?
Contact Ruffcorn Insurance today for a no-obligation policy review. We’ll walk you through your current coverage, identify any gaps, and make sure you’re protected before the next storm rolls through.
