Do you have roof damage? Is State Farm refusing to pay for a roof replacement, even though your policy says otherwise?
You’ve paid your premiums for years, so you should expect State Farm to honor their policy. However, recent weather trends have forever changed how larger insurance companies handle roof damage claims and the roofing industry.
State Farm and others are simply starting to refuse to pay out claims on clear-cut cases. But why?
For over 35 years, Bill Ragan Roofing has taken pride in bridging the information crossover gap between insurance and the roofing industry. So, let’s look at why State Farm could be refusing to pay for your roof replacement.
By the end of this article, you’ll learn the answers to the following questions:
Recently, State Farm has been tightening coverage options, limiting payouts, and denying obvious claims. This is simply because of the increase in damaging storms and claims being filed at a record pace, which has led to large corporate losses.
If there are a lot of claims in an area, State Farm has started to have a denial mindset. I don’t know if they’re hoping you accept the denial and move on, but they’ve become increasingly hard to deal with.
Now, this isn’t to say anything bad about the adjusters just doing their job. However, too many clear and obvious claims are being denied for it to be a coincidence.
Unfortunately, the hard part recently is also getting State Farm to pay for a full roof replacement on RCV policies when a claim is approved. Roofers are getting more push back on supplementing missing claim items and adhering to specific policy details, such as code upgrades or profit, than ever before.
This is State Farm literally refusing to pay for your roof replacement, even though your policy is clear on what’s covered. That’s why it’s crucial to hire a roofing contractor with insurance experience you can count on to guide you through the mess.
You just learned why State Farm will refuse to pay for a roof replacement if they handle things incorrectly. However, there are also legitimate reasons why claims are denied.
So, the only way to know if your denial is legitimate is by understanding why they're refusing in the first place. Let’s look at the following reasons why State Farm refuses to pay for a roof replacement:
The easiest way for State Farm to deny a roof replacement is because the adjuster didn’t find enough noticeable damage. If there isn’t damage, then there’s no viable claim.
Just keep in mind that insurance adjusters aren’t roofing experts, so there’s room for mistakes. That’s why it’s a good idea to have a trusted roofing contractor there when the adjuster comes out.
Your insurance policy with State Farm determines what’s covered and the payout once a claim is approved. While not as common, they can deny your claim because your roof is part of the policy exclusions.
This could be because a certain type of damage is excluded or limited, but State Farm and other larger companies are denying claims due to neglect. This simple exclusion puts the blame on you, and they could even force you to replace the roof anyway if you want coverage.
While exclusions are always considered, the specific type of policy can actually be the reason State Farm is refusing to pay for your roof replacement. If you have an ACV policy (Actual Cash Value), the payout will never be enough to cover the full cost of a roof replacement.
This policy only provides a payout for the depreciated value of your roof once the claim is approved. So, you’ll still get a check from State Farm, but you’ll have to pay the rest out of pocket.
Two of the most legitimate reasons State Farm refuses to pay for a roof replacement are improper roof installation and inadequate attic ventilation. They simply won’t approve a claim on a roof that wasn't done correctly and is destined for premature failure.
But just like neglect, this will also lead to being forced to replace your roof if you want continued coverage.
This is probably the least common reason, but State Farm will deny claims due to defective materials. Fortunately, you still may be able to get the roof taken care of if material warranties are still in effect.
However, this depends on the manufacturer, specific defect, warranty length, and if a certified roofer installed it.
Depending on your policy, State Farm usually allows up to 1 year after the storm to file a claim for roof damage. So, it’s an easy refusal if you wait too long to start the claim process.
Now, you’ll need to look at your insurance policy and paperwork to learn exactly how long you have. And before you think there’s no way for insurance companies to track this, they have access to software that tells them when and where a storm hits.
After reading this article, you know why State Farm is refusing to pay for roof replacement and the legitimate reasons why they deny claims. If your claim is denied for lack of damage or another good reason, it’s easy to accept.
However, you still have options if you're adamant that there’s damage your policy should cover. So, don’t get down if your initial claim is denied.
While there’s no approval guarantee, you can double or triple-check the first adjuster's denial. That’s why I wrote another article breaking down how to do it.
Check out What Can You Do If Insurance Denies Your Roof Damage Claim to learn what you can do if State Farm denies your initial roof damage claim.