After getting the news you need a new roof, you should be doing a lot of research. You need to learn things like what needs to be replaced or finding a great roofing contractor.
However, there’s one thing that a lot of homeowners don’t think about. The methods to actually pay for your new roof.
Can you pay in cash? By check? Is it possible to finance? The truth is, there are multiple ways to pay for a roof replacement.
Here at Bill Ragan Roofing, our main goal is to educate you and other homeowners on every aspect of your upcoming roof investment. That’s why we’re giving you the 3 common ways to pay for your new roof.
At the very end, we’re also going to give you the opportunity to use our Roof Cost Calculator to get an idea of the price you’ll pay for a replacement.
1. Paying for your new roof out of pocket
The first and most obvious way to pay for your new roof is out of pocket. However, the way you can pay out of pocket depends on the roofing contractor who does the work.
Some roofing contractors will take cash, but you need to be sure you’re working with a reputable roofing company. You also need to keep in mind how comfortable you are with having that much money on you at once.
The two most popular types of out of pocket payments are with a card (credit/debit) or a check. If you pay with a credit card, there will be a transaction fee.
Be aware; some companies might not accept certain credit cards. No matter which way you want to pay out of pocket, a deposit will be required when you sign your proposal.
This ensures homeowners don’t back out after the roofing contractor orders the roofing materials and spends time planning the roof replacement. If the paying out of pocket option is the way you want to go, ask your roofing contractor about the kinds of payments they accept.
2. Financing your new roof
Another way to pay for your roof is to finance it. No matter what financial situation you’re in, financing a roof replacement is a great option.
There are a couple of different ways to finance a new roof. The first is financing through a roofing company.
This can be done either in-house with your roofing contractor or through their partnership with a financing company. Just know, your roofing contractor has nothing to do with the approval process.
They can set you up with their financing partner, but it’ll be up to criteria set forth by the financing company if you’ll be approved.
The second way to finance your new roof (and the best option for most homeowners) is to get a home equity line of credit, also known as a HELOC. Keep in mind, it will take a little bit longer to get approved than financing through your local roofing company takes.
However, a HELOC is tied to a second mortgage on your home, and the interest rates will be much better. No matter which one you go with, financing your roof is going to be the way to go if you think you can’t afford a roof replacement.
3. The insurance company paying for your new roof
The third way of paying for a new roof isn’t going to be for everyone. But if a strong hail storm or another extreme weather event comes through your area, you’ll be able to pay for your new roof through your insurance company.
If you have a Replacement Cost Value, they’ll actually pay to replace your roof if it has storm damage. After your claim is approved, the insurance company sends you a check for the actual cash value (what it’s worth at the moment) of your roof.
Then after your roof is installed, your insurance company will send the rest of the money for the recoverable depreciation (the amount your roof has depreciated during its lifetime). Be aware; you will have to show proof that all the work has been completed before they’ll pay out the rest of the money.
After getting your second check, you’ll give it to your roofing contractor to cover the rest of the cost of your roof (unless you add upgrades). The insurance claim process is slow, and it could be a couple of months before you even get your new roof installed.
However, you should only have to pay your deductible when getting a roof replacement through your insurance company. Keep in mind that filing a claim doesn’t guarantee approval, and it might affect your insurance premiums.
How much will your new roof actually cost?
Now you know 3 common ways to pay for your new roof. While a lot of homeowners like to pay out of pocket, it’s not going to be an option for everyone.
If you’re worried about paying for your new roof, talk to your roofing contractor about their financing options. But after learning how you’re able to pay for your new roof, aren’t you curious how much it’ll actually cost?
Unfortunately, the roofing industry doesn’t like to talk about pricing. But we take pride in doing this a little differently at Bill Ragan Roofing.
That’s why we developed a Roof Cost calculator to give you an idea of how much you’ll pay for your new roof.
Since 1990, the team at Bill Ragan Roofing has helped homeowners in Nashville and surrounding areas get a beautiful new roof that fits their budget. We take extreme pride in our workmanship and give you a lifetime warranty to back it up.
If you’re local to Nashville, contact us to get the beautiful roof you deserve.
Use our Roof Cost Calculator to learn the budget you’ll need for your upcoming roof replacement.
