New Roof Killed My Savings

Oh the joys of home ownership… Our house was built in 2001 and 15 years later it is time to replace the roof. I have never done any kind of repairs on our roof even after going through both hurricane Ike and Rita which hit the Houston area pretty hard. We also had a couple of hail storms this year so I figured it was time to replace.

This is where things get interesting. I’m always looking for ways to save money so 3 years ago I got new home insurance quotes which lowered my yearly premium to $1,100 a year… well of course I didn’t even looked at the deductible so, lesson learned- with a low premium comes a high deductible. Our current home insurance deductible is $4,000! Yes, I saved some money but now that I need to use the insurance I will pay most of those savings back. I called and filed the claim and they approved a new roof repair for $12,500 but with that high deductible you can see where I am going to have to come out with out of pocket money. Somehow my roofer worked it out where he can do all of the work and I come to the table with $1,900 (tried to bring this down, no luck). Keep in mind that the average cost to repair a roof according to Angie’s List members is $11,095 and that’s to tear off and replace an old roof . Prices can also vary greatly depending on where you live so I think I got a good price. Anyways… this is where we dip in to our Discover Savings:

I really wanted to bring our Discover Savings back up to $20,000 but that won’t be happening anytime soon. I could have put the roof repairs on the CC but I don’t want anymore debt. I rather lose a little on the savings than have more consumer debt. The roof is something that needed to be done and hopefully I won’t have to worry about this roof for another 15 years.

Has anyone else replaced their roof lately? Did you have to bring out of pocket money? Is this tax deductible??