Sims Exteriors warns homeowners about storm coverage gaps

A Wisconsin remodeling company is urging homeowners to review insurance policies before storm season after hail losses hit record levels and carriers changed how many claims are paid. The warning comes as post-storm demand surges and some homeowners discover higher out-of-pocket costs than expected. Why it matters: - Hail-producing storms caused an estimated $54 billion in insured losses across the U.S. in 2024, putting more pressure on insurers and homeowners. - Policy changes can leave homeowners paying far more out of pocket after a storm than they expected. - Post-storm contractor demand can rise fast, increasing the risk of rushed decisions and uneven workmanship. What happened: - JW Sims, founder and president of Sims Exteriors & Remodeling in Stoughton, Wisconsin, is urging homeowners to review coverage before storm season. - Sims saw the issue firsthand after a major hailstorm hit southern Wisconsin in April 2025 and triggered a rare “destructive” Severe Thunderstorm Warning in the Madison area. - Sims Exteriors & Remodeling said it received more calls in the 30 days after the storm than it typically handles in six months. - Many of those homeowners were surprised to learn their coverage had changed since their last claim. The details: - Many carriers have changed how storm claims are paid as losses have risen. - Replacement cost coverage pays to replace a damaged roof with comparable new materials. - Actual cash value coverage subtracts depreciation and can sharply reduce payouts on older roofs. - On a 14-year-old roof with a 25-year lifespan, the payout gap can exceed $10,000 on a $20,000 replacement. - Many insurers now use ACV-based coverage once a roof reaches a certain age, often 10 to 15 years. - Some policies permanently withhold depreciation, while others release it only after repairs are completed and documented. - Many policies now exclude cosmetic storm damage, including dents, dings and surface marks that do not affect structural integrity. - Cosmetic damage exclusions have become more common in hail-prone regions including the Great Plains, Midwest and Mid-Atlantic. - In many states, insurers are required to replace only the damaged portion of siding. - If an exact color or product match is unavailable, a comparable substitute may be approved, which can leave exteriors mismatched. - Percentage-based wind and hail deductibles of 1% to 5% of a home’s insured value are increasingly common. - On a $400,000 home, that can mean as much as $20,000 out of pocket. - Industry data shows the average home insurance deductible increased 24.5% from 2024 to 2025. - Consumer protection agencies advise caution around contractors who demand large upfront payments, pressure immediate decisions or offer to waive insurance deductibles. - Waiving a deductible is often fraudulent. Between the lines: - Rising hail losses are pushing insurers to tighten terms, shift more costs to homeowners and limit coverage in ways that are easy to miss in policy notices. - The post-storm contractor rush creates a second risk: homeowners may accept the first available crew instead of verifying who will actually do the work. - Sims said homeowners should ask who is doing the work, whether the company uses its own crew or subcontractors, and who will be accountable if problems surface later. What’s next: - Homeowners are being advised to request a policy review with an insurance company or agent before the next storm season. - Homeowners should read mailed or emailed policy update notices closely, since coverage changes are often disclosed there. - Homeowners should document current home condition with timestamped photos and video. - Homeowners should understand claims timelines, since most states allow more time to file and complete repairs than storm urgency suggests. - Homeowners should verify contractor licensing, insurance, workmanship warranties and who will physically perform the work. - Sims said a two-week wait for a contractor with a real track record is usually worth it. The bottom line: - The best time to find out what your policy covers is before hail hits, not after damage is already on the driveway. - More details are available at the company’s website .