Safeco “Payment Schedule” for homeowners insurance policies

Safeco has a new rule for homes that they insure:
-When a roof becomes a certain number of years old, then roof coverage for windstorm or hail damage will change from “Replacement Cost” to “Payment Schedule.”
-The location of the home and type of roof will determine at what year the roof coverage will change from “Replacement Cost” to “Payment Schedule.”

How to know if your roof has changed from “Replacement Cost” to “Payment Schedule” coverage
-Every year, when you receive your insurance policy renewal paperwork, you need to read it. If there are any significant changes that will come to the renewal insurance policy, the details will be clearly explained in the first section of the renewal policy.
-Below is one way that this will look. Also, they will include a larger section that will explain the details of the Payment Schedule.

What “Payment Schedule” means….or…..the difference between “Replacement Cost” and “Payment Schedule.”:
–Replacement Cost: If wind or hail damages the roof, the insured must pay the deductible. The insurance company will pay the rest of the money to fully replace the roof if necessary.
–Payment Schedule: If wind or hail damages the roof, the insured must pay the deductible. Then, the insurance company pays the Payment Schedule amount. (A copy of the payment schedule document is below. It is based upon the type of roof and the year when it was last replaced. The older the roof becomes, the less the insurance company will pay). After the insurance company pays the payment schedule, the insured pays the rest of the money to the roofing company.

Below is a picture of the Payment Schedule. You can download it if you want.

Let us know if you would like us to review your insurance policy with you. There is always a chance that we might have the incorrect roof year listed on your homeowners insurance policy. Also, for many homes, there is an option to pay extra to change the roof coverage from “Payment Schedule” and back to “Replacement Cost.”

Is it a bad thing to have Payment Schedule coverage on the roof? The upside is that the premium on the policy is lower. The downside is that if there is a windstorm or hail claim, the insurance company doesn’t pay the full replacement cost amount for the roof.