In this blog post, we’ll show you how to budget for a new roof, which is a pricey investment and can be difficult, stressful, but it’s inevitable. The roof protects the home from extreme outdoor conditions, i.e., hailstorms, torrential downpours, high winds, and scorching heat. So, if your roof no longer does its job, you’re left with no choice but to replace it.
A new roofing project requires meticulous planning – there’s no going back once you sign the contract. But, before you do that, you must first create a budget.
A roof replacement project puts a significant strain on your finances, but everyone must go through it eventually. Creating a budget allows you to put the project under your control; it’s all about managing every step, so you don’t end up going overboard.
File an Insurance Claim
Some types of roof damage may be covered by insurance, so it makes sense to file an insurance claim. However, don’t give the insurance provider a reason to deny the coverage.
When your home insurance covers the cost of repairs, the entire expense might not be deductible. It means that for a roof that costs $6,000 to install and a $1000 deductible, the insurer pays for the $5000.
Once you submit a claim, the insurance company will contact you to establish a time for an adjuster to assess the damage.
Create an Outline
Outlining the budget is essential to come up with accurate estimates for a new roof. You should factor in building permits required by local regulations, size of the property, the roof’s pitch and material preference, and roofer fees. The outline serves as a guide throughout the process. It’ll give you a boundary on spending.
To make a budget for roof replacement, you need an estimate of the total project price. Then, consult with several contractors for approximate costs of the project. You’d be surprised to see they offer varying figures. It’s the reason why comparing quotes makes perfect sense – you want to get the best deal for the same project.
Choose a roofer who goes the extra mile to provide an accurate estimate. Most contractors offer a general quote with dedicated lines for labour and material costs. A highly detailed quote helps you figure out if there are reasonably-priced materials out there that do the same job.
Most contractors don’t recommend cheaper materials for roofing, but it’s your prerogative as the property owner to decide, especially if you have budget constraints.
Quotes from a few roofing contractors should give insight into the typical cost range. Gather at least three quotes from contractors and show them to the insurance adjuster. It’s his job to assess the accuracy and rationale of the quotes.
Not everyone has emergency funds set aside from the home renovation. Putting up a new roof costs thousands of dollars, which is why many homeowners can’t afford it. But don’t get discouraged – there are ways to seek funds for new roofing.
Begin by taking a closer look at your household spending. Look for areas where you can reduce spending and repurpose the money for the roofing project. This isn’t permanent; you get to go back to your usual household spending once you get over the necessity of a new roof.
It’s common practice in North America for local governments and states to offer financial assistance, loans, or housing grants for low-income property owners. Look for information about housing grants in the locality or state where you live. There’s usually a website where you’ll see the eligibility requirements to qualify for the program.
Choose Roofing Material Wisely
Choosing a material is an important decision when replacing the roof of your home. The available choices vary greatly with price and durability.
For example, asphalt shingles offer practicality, while metal and concrete tile roofing materials provide longevity.
Your choice of roofing material plays a crucial role in creating your budget – work with a trustworthy roofer to get the best deal regardless of the roofing variety.
Other Financing Options
In some instances, using a credit card to finance your roof installation is an option. Credit cards with high cash-back rewards can be advantageous if used for financing purposes. If you can use your credit card to finance a new roof over the next year without interest, it’ll be more affordable in the long run.
But be wary of credit card schemes where you’re tricked into paying high processing fees. If possible, go for an installment program that allows payment extensions.
A personal loan is a viable option if you don’t have the desired funds upfront to cover your roofing project. If that’s what suits you best, a lender can offer you an upfront payment for your new roof. The main downside to personal loans is the high-interest rates. With a bad credit history, you will pay more in interest; however, you might be eligible for more reasonable payment terms with good credit.
The Value of Saving Cash
Unless a roof replacement is urgent and unavoidable, wait a few months to save the money. Then, save at least 1% of your home’s value every month. For example, $8500 is enough for a 2,000 square foot house that needs a new roof.
Not having enough money set aside to purchase a roof is the most significant barrier for most people who need one. A fail-proof way to get the cash for a new roof is to start saving at least two years before taking on the project.
It’s the roof we’re talking about – the structure that protects you and your family from the harsh environment outside. So, if you’re looking for a reason to cancel recently planned vacations and other unneeded expenditures to save money, this is it.