How to Pay for a New Roof [Financing, Insurance, Out of Pocket and More!]

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If you’re in need of a roof replacement, you may be wondering how to pay for a new roof. This can be a costly investment, and unfortunately, in some situations, the need for a new roof can come at an unexpected time. From hail damage to a hurricane, there are plenty of instances where the need for a new roof may be out of your hands, and come at a time when you’re financially unprepared.

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Luckily, there are multiple ways to pay for a new roof for a variety of budgets and time frames. In this article, we discuss different payment options in order to make your new dream roof a reality. Keep reading and discover How to Pay for a New Roof, including financing options, insurance claims, government assistance programs, and more!

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Table of Contents

- How to Pay for a New Roof

  - Financing

  - Insurance

  - Out of Pocket

  - Government Assistance

- Solar Panel Installation

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How to Pay for a New Roof

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So, if you’ve made it this far, then you’re probably in the market for a new roof. This can happen for a variety of reasons including hurricanes, storm damage, structural damage, or simply the age of your existing roof. No matter the reason why, when it’s time for a new roof, you will want to take action as soon as possible.

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Those who wait may end up sustaining even more damage to the home, which could be costlier in the long run. A roof protects your home and its contents, and if your roof has issues that need to be addressed, this can cause water damage to the inside of the home, which could create issues that extend to your walls, ceilings, and personal belongings. This can also create mold and mildew, which is a cause for severe health concerns.

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All of this poses a problem for homeowners who maybe don’t know where to start, or don’t know how they’re going to afford such a costly, yet important, investment. There are options available, however, for those in need of purchasing a new roof. Below we will discuss financing options, insurance claims, out of pocket expenses, government assistance, and more, to help you along your journey towards a new roof.

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Financing

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Financing is a very popular option among customers wondering how to pay for a new roof, as there are plans available for every financial situation. And there are a couple of different ways to go about financing a roof, as well. The first way to do this is by financing through your roofing company.

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This can be done with your roofing contractor directly, or through their partnership with a financing company. It’s important to note here that your approval has nothing to do with the roofing company themselves, but with the financing partner. It will be up to the financing company they use whether you get approved or not.

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Elite Exteriors is proud to offer financing options through Hearth Financing. This easy process will allow you to replace your new roof now, and pay later! To get started, all you have to do is fill out an online application, and then check your inbox for pre-qualified offers. With Hearth you’ll receive:

• No Hidden Tack-On Fees Per Loan
• 100% Guarantee the Online Application Process will NOT Impact your Credit Score
• Loan Amount of up to $250,000
• No Prepayment or Dealer Fees
• FICO - 550 and Above
• No Requirement for Years in Business
• Low APR
• Digital Contracts, Quotes, Payments, And MORE!

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The second way to finance your new roof is to get a Home Equity Line of Credit, also known as HELOC. It may take a little bit longer to get approved than it would working with your roofing company, but interest rates will usually be fairly low. This is because a HELOC is tied to a second mortgage on your home, but either option you choose makes financing a new roof a breeze.

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The third option as far as financing goes requires taking out a personal loan through a financial institution. If you choose to go this route, you will want to shop around in order to be sure you’re getting the best rates. This is because each creditor will have different rates, terms, and conditions, specifically loan length and interest rates. Whichever option you choose when deciding how to pay for a new roof, financing is a great way to go if you can’t afford a roof replacement up front and out of pocket.

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Insurance

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When deciding how to pay for a new roof, one thing you may want to consider is contacting your insurance company. This option isn’t for everyone, but if you’ve recently experienced a strong hail storm, hurricane, or other severe weather event in your area, you may be able to pay for your new roof through your insurance company.

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If you have coverage for a Replacement Cost Value, the insurance company will actually pay to replace your roof if it has storm damage. After your claim is approved, the insurance company will send you a check for the cash value of your roof, which is what your roof is worth at the current moment, damage and all. When the installation process is complete, your insurance company will send the rest of the money for the Recoverable Depreciation, which is the amount your roof has depreciated during its lifetime.

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With that being said, you will have to show proof that all the work has been completed before the insurance company pays out the rest of the money, typically via check. Once they do, all you have to do is give the roofing contractor the second check to cover the rest of the cost of your roof. Once it’s all said and done, the only thing you will have to pay out of pocket for your new roof is the insurance deductible.

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It’s important to mention here that the insurance claims process can be lengthy, and may even take a couple of months from the start of the claim to the finished roofing product. Also, filing a claim doesn’t necessarily guarantee approval, and this could affect your insurance premiums. If you are wanting to replace your roof through your insurance, it’s best to consult with your insurance provider and roofing contractor.

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Some roofing contractors, like Elite Exteriors, for example, are insurance specialists, and can guide you through the whole insurance process. This takes the stress out of navigating through the claims process, as the contracting company will work on behalf of the homeowner to ensure nothing is missed, and that your roof is brought back to its pre-storm condition. This is also why it’s important to choose a roofing contractor you can trust, and ask them the proper questions during the hiring process.

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Out of Pocket

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One of the more obvious answers when it comes to how to pay for your new roof is paying out of pocket. If you have the funds on hand, then this may be the way to go for you. Most roofing contractors will accept cash, credit, debit or check. In this situation, however, it’s important to be sure that you’re working with a reputable company that you trust.

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The two most popular types of out of pocket payments include paying with a card or with a check. When you pay with a card, you will more than likely have a transaction fee tacked on to the total cost. Also, some companies might not accept certain cards, but no matter which way you pay out of pocket, you will more than likely have to pay a deposit when you sign your contract.

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This is a way for contractors to ensure that the homeowner won’t back out after materials have been ordered and plans have been made. If this is the payment method you choose to go with, it’s important to first do some research on the roofing contractor that you choose, and also to check with them as to which forms of payment they accept. A little bit of research goes a long way when it comes to peace of mind, customer service, and the quality of your finished product!

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Government Assistance

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Luckily for homeowners, there are government roofing grants available throughout the country for roof replacement, that may just be the solution for those wondering how to pay for a new roof. Grants will typically fall into two categories including national programs and local programs specific to a certain geographical location. This is a great option for those with a smaller budget, specifically in instances where a roof needs to be replaced, but insurance won’t cover it because the damage wasn’t sustained due to adverse weather.

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When it comes to government assistance, this will usually only cover a portion of the costs, and not the entire replacement, but it can surely help when it comes to the bottom line. This is another time when it's beneficial to work with a residential roofing contractor you can trust, as a good roofing installer should be able to advise you on the grants that are available to you in your area. With that being said, below are a few of the main federal grants that you may be eligible for:

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• Weatherization Assistance Program: This is run by the Department of Energy. It is intended for low-income households to reduce heating and cooling costs by keeping a roof in good condition and/or making it more energy efficient.
• Single Family Housing Repair Loans and Grants: This is overseen by the Department of Agriculture, and was created for very low-income families who earn less than 50% of the median income, or low-income individuals who are 62 years old or older. Sometimes called the Section 504 Home Repair Program, this roof grant focuses on homes deemed a safety hazard in low income communities.
• Tribal Energy Program: This is aimed at Native American tribes to help evaluate and develop their renewable energy resources, and reduce energy consumption through weatherization and efficiency.

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Also, if you own a single family home, you may qualify for the FHA Title I Property Improvement Loan. The Department of Housing and Urban Development, or HUD, offers these loans through pre-selected lenders for those who qualify. According to HUD, the loan must be used to, “substantially protect or improve the basic livability or utility of the property,” and must, “be used in conjunction with a 203(k) Rehabilitation Mortgage.” For more information on this program, click here.

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Solar Panel Installation

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If you’re searching for how to pay for a new roof, and have ever thought about going solar, this may be your time to shine! While solar panel installation isn’t necessarily a way to pay for a new roof, there are plenty of cost-saving benefits of going solar. The Federal Solar Tax Credit, also known as the Residential Clean Energy Credit, allows eligible homeowners to deduct up to 30% of their solar panel installation costs from their federal income taxes.

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And if you’re a homeowner in Florida, then you will be pleased to know that Florida is one of several states that provides a 100% property tax exemption for residential solar panels. So, even if the value of your home increases, you won’t pay additional property taxes. Not only that, going solar is a great way to save on energy costs, and may even increase your home value when it comes time to sell.

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With that being said, if you’re in the market for a new roof and are searching for ways to save money, you may want to consider going solar. While this may require more money up front, it is an investment that can save you money in the long run. For more information about the benefits of going solar, check out our recent blog, “Are Solar Panels Really Worth It? [Pros and Cons of Going Solar in 2022]”

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As you can see, there are plenty of options out there when wondering how to pay for a new roof. A new roof is definitely a large investment, but also an extremely important one. From government assistance programs, to financing and insurance claims, there are plenty of options out there for a variety of budgets. At Elite Exteriors, we believe that every homeowner should be able to acquire a new roof when it’s time, and to be able to make their dream roof, and dream home, a reality.

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Elite Exteriors is the Southeast’s premiere residential and commercial resource for unparalleled service, superior craftsmanship, and incomparable quality, and it’s all backed by an unprecedented lifetime labor and materials warranty! We would be honored to help you with your roofing needs, and to guide you through the entire process, from helping you choose the payment option that’s best for you, to installing a roof with curb appeal that you can be proud of.

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We provide our customers with a FREE initial consultation and inspection, and our roofing experts and insurance specialists are more than happy to answer any questions you may have. Give us a call today at 470-350-3024 to see what Elite Exteriors can do for you and your roofing needs, or fill out our online form for more information: https://www.eliteexteriorsusa.com/contact.

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