Re-roof on rental property--worth going through insurance?

[Rylito]

Hi everyone,

My tenant informed me of some water damage in her closet so I am in the process of getting estimates for replacing the 31 year old roof.  It occurred to me that the insurance policy may cover some or all of the costs--will need to look the policy info when I get home.  I have a $2500 deductible and I'm sure the cost to replace the roof will be at least double that.  Would it be advisable to make a claim based on the water damage, or will that be a mistake I'll be paying for for years to come in increased premiums?

[Mr. Green]

You may be able to make a claim for damage to the interior of your house, depending on what your insurance covers. However, I highly doubt insurance will cover the cost of a new roof because it is "end of life." I doubt the interior damage alone would justify a claim unless it is extensive. I filed a homeowner's claim once for an A/C compressor that was struck by lightning. The bill was about $7,000 and our deductible was $1,000. I never saw an increase in our insurance rates after the repair.

[moneygame]

Short and general answer: There is likely no coverage for the re-roof as normal age related wear and tear is generally excluded from coverage under home insurance policies. Storm or wind damage to the roof will trigger coverage for roof replacements if the damage actually warrants a replacement vs. a repair. The resulting water damage to your interior is very possibly covered but may not be worth making a claim unless the water damage is fairly extensive (i.e. several rooms and a lot of drywall damage/over the amount of your deductible in repair costs).

However, all of this analysis depends on the specific language in your insurance contract.

[Rylito]

Thanks for the advice--much appreciated!