Here’s something that many homeowners don’t realize: Your home’s siding can have a big influence on how much you pay for homeowners’ insurance — and even how your insurance company handles claims. That’s because it impacts how much risk your insurance company assumes when it issues your policy.
Siding forms your home’s first line of defense against sources of damage like weather, pests, or even fire. Because different types of siding may perform better or worse against these types of damage, your siding material can influence your premiums, coverage limits, and even the claims process.
Below, we’ll discuss how different siding and homeowners’ insurance interact so that you can choose siding that not only looks great but also offers lasting protection and better homeowners’ insurance rates.
Does Homeowners Insurance Cover Siding, and What Will It Cover?
Standard homeowners’ insurance policies include dwelling coverage, which protects your home’s structure, including the siding, against specific covered perils like fire, hail damage, wind damage, vandalism, or other sources of damage. For example, if a storm rips through your area and causes hail damage or if an accident happens — say a motorist crashes into your home and their auto insurance is insufficient to fully pay the damages — your homeowners’ insurance should kick in to pay for structural repairs, including any repairs needed to the home’s siding.
Exclusions and Limits on Insurance Coverage
Keep in mind, there are limits to what homeowners’ insurance will pay for. Things like normal wear and tear, color fading with time, or gradual deterioration of the siding material are typically listed as exclusions. If the insurance company views damage to your siding as something that falls under normal wear and tear rather than an unexpected loss, they’re unlikely to pay.
Here’s an example: Imagine your home has wood lap siding. If a freak windstorm comes through and tears off some of the laps, this is considered an unexpected loss, and your insurance company will likely pay to repair the damage.
However, if you have a few wood laps that fall off because they’re old and rotten, insurance companies see this as normal wear and tear that the homeowner should be prepared to handle themselves as part of their routine home maintenance expenses.
Payouts: Actual Cash Value Versus Replacement Costs
Another thing to understand about siding and homeowners’ insurance is that insurance policies can differ in how they pay out — and that’s why it’s crucial to know the difference between actual cash value and replacement cost.
Replacement cost policies are simple: The insurance provider pays the cost of repairs and replacement minus the deductible.
Actual cash value policies factor in depreciation. If your siding is relatively new and hasn’t had the chance to depreciate over the span of several years, you’ll receive a higher payout toward repair and replacement costs. However, if the siding is close to the end of its lifespan, depreciation means you’ll get a lower payout to cover damage (again, minus your deductible).
What Happens When You File a Claim for Siding Damage?
When you experience siding damage from an extreme weather event, an accident, or some other unexpected circumstance, you’ll start by filing an insurance claim. Your insurance adjuster will guide you through the claims process, which usually begins by documenting the damage. You’ll need to take detailed photos of the damage and note the date and cause. You’ll also need to get quotes for siding repair costs.
Your insurance company will take things from there. They’ll assign a claims adjuster to inspect your property and determine whether your homeowners’ policy covers the damage. The adjuster will evaluate the type and extent of the loss, the materials involved, and whether the damage is isolated or affects larger areas. Once they’ve completed their evaluation, they’ll issue a payment you can use to cover repairs.
Does Siding Affect Homeowners’ Insurance?
Yes, your choice of siding material affects how your insurance provider evaluates your home’s risk profile — and that means siding and homeowners’ insurance premiums are directly related. Insurers analyze every factor that influences the likelihood of a claim, and siding is a big one.
In general, siding materials that are durable against weather-related threats, fire, and other hazards tend to score lower insurance premiums because insurers feel the risk of potential payouts is lower. On the flip side of that, more fragile or high-maintenance siding materials increase the risk of damage that needs to be repaired — and that drives up insurance costs.
What Siding Materials Lower Insurance Premiums?
Here’s how common siding materials compare in the eyes of insurance companies:
- Vinyl siding: While it’s affordable and easy to install, it’s also prone to hail damage, cracking, and is not at all fire-resistant. Expect higher premiums, especially in storm-prone or fire-prone regions.
- Wood siding: Wood is susceptible to water damage and pest damage, and it can be difficult to repair when vandalized. Where you can wash graffiti off of metal or vinyl, wood may need to be repainted. It’s also not fire-resistant either. It’s considered a high-risk material, which means you can expect higher premiums.
- Fiber cement siding: Fiber cement performs well against fire and moisture, but when it does need to be repaired, it can be costly, which can balance out its risk profile. In most cases, you can expect more moderate premiums with fiber cement siding.
- Steel siding: Steel is exceptionally resistant to fire, windstorms, hail damage, moisture, pests, and more. Because it carries a low risk profile, steel siding is one of the best options available, both in terms of protection for your home and lower insurance premiums.
Keep in mind, regional differences can play a big role in your insurance premiums too. For example, in fire-prone regions, insurers may offer steeper discounts for steel siding and much higher premiums for vinyl or wood siding compared to premiums for steel or wood siding in regions that aren’t prone to wildfires. Similarly, areas with high crime rates, larger incidences of wood-destroying pests, or more frequent storms can all raise rates even more for siding options that are less durable against these things.
Why Steel Siding Is a Smart Investment
From an insurer’s standpoint, steel siding checks nearly every box for reduced risk and long-term value, which means you can often reduce premiums by choosing steel over other types of siding. It stands up extremely well to environmental damage, it’s one of the most fire-resistant types of siding available, and to top things off, if your insurer only approves a partial siding replacement, you won’t need to invest in re-siding or repainting the entire home to ensure that your siding matches. We’ll explore each of these advantages in-depth below.
How Does Steel Stand Up to Environmental Damage?
One of the main reasons steel siding tends to lower homeowners’ insurance premiums is that it stands up to extreme weather — including hail damage, windstorms, and heavy rain — better than almost any other type of siding available. This is in part because of its high impact resistance.
TruLog steel siding received a Class 4 impact rating in lab testing, which is the highest rating possible. This kind of durability means that it can also stand up to high winds without bowing or cracking.
Where pests are concerned, steel’s toughness ensures they can’t chew through it. You won’t need to worry about termites or rodents with steel.
TruLog steel siding is also impervious to moisture, whether it comes in the form of rain and snow or high humidity. It features a rigid, galvanized steel core designed to prevent rust and corrosion, and this is further capped by a corrosion-resistant barrier and protective clear coat. It keeps water out, and even if the finish gets scratched, the galvanization will stave off oxidization so that you can quickly repair the scratch using an automotive paint pen or a bit of primer and latex paint.
Is Steel Siding Fire-Resistant?
Unlike wood or vinyl siding, steel is non-combustible, which means it won’t ignite or fuel flames. This feature alone can make a significant difference in home insurance rates, particularly in areas where wildfires or neighborhood fires pose a threat.
TruLog’s steel siding features a Class A fire resistance rating, which is a classification issued by the American Society for Testing and Materials. As the top rating achievable, it signifies that TruLog steel is among the most fire-resistant siding options available, making it best for wildfire-prone areas. By comparison, according to the American Wood Council, most wood products fall into Class B or Class C, which means they offer moderate to poor fire resistance. Vinyl siding is typically rated Class C, which means it offers poor fire resistance.
How Can Steel Siding Ease the Claims Process?
Mismatched siding is one of the most common issues that homeowners run into when working with insurers to repair damaged siding. Here’s what usually happens:
- A damaging event — for example, a hailstorm — blasts through your region, causing damage to your home.
- However, the windblown hail only damaged one side of your home, leaving the others untouched.
- Since the undamaged siding still offers plenty of protection against the elements, the insurance company only pays to repair the damaged sections of siding.
- At this point, your siding is several years old, which means the colors have faded — and now the replacement sections stand out, leaving you with ugly, mismatched siding.
To insurance companies, mismatched colors are a maintenance or cosmetic issue, not a structural concern, but to homeowners, they’re a huge headache that can drastically alter the home’s curb appeal.
TruLog’s steel siding shines here because our finishes don’t fade. In fact, we’re so confident in the longevity of our colors we offer a 30-year paint protection warranty that guarantees your siding won’t fade, flake, peel, crack, blister, or chalk. When your insurance company pays for only a partial replacement, you can rest assured that you’ll have matching siding because the new sections will blend seamlessly with your existing TruLog siding.
Meanwhile, if you have a type of siding that is relatively easy to repaint, like wood or fiber cement, you’ll be stuck footing the bill for a new paint job to make the siding match again.
If you have vinyl siding, your options are even worse: While faded vinyl can be repainted, it has naturally poor paint adhesion and requires lots of prep work to get a finish that will last only a few years. Full replacement is usually the better, easier option to ensure your siding colors match. Either way, you’ll be on the hook for repainting or replacement expenses that your insurance won’t cover.
Protect Your Home and Get Better Insurance Rates With TruLog Steel Siding
New siding for your home’s exterior isn’t just about ramping up curb appeal. It’s an important investment in the future of your home — and one that can result in big changes in your homeowners’ insurance premiums.
When it comes to siding and homeowners’ insurance, TruLog steel siding is one of the best choices you can make. Not only does it look great, but it also offers some of the best fire resistance, weather resistance, and durability on the market. Insurers view it as a low-risk material — and since it’s one of your home’s first lines of defense against the elements, this can substantially reduce your premiums.
Ready to learn more about TruLog steel siding? Download our free catalog to discover even more benefits and to check out the colors and styles available.
