That’s how Dan reacted when I told him our homeowner’s insurance deductible was $5,000. Well, not really. In fairness, what really happened was that he said, “What?” very loudly. Then he didn’t talk for several minutes.

Here’s the story. On March 27th, a hail storm went through the area. We’ve seen many of our neighbors getting new roofs. So, we decided we should probably get ours checked. Big surprise. We had hail damage and age cracks. We have lived here for nearly 9 years, but the house sat empty in builder bankruptcy for a good year or more before we bought it. Twelve years isn’t very old for a roof at all, so I checked into it. I read online that if a “30 year shingles product” is not properly cared for, it will only last 12-15 years. I guess we should have yelled, “We love you!” up to our roof more often.

Why do we have a $5,000 deductible for our homeowner’s insurance? The reason is simple. Because I LOVE Clark Howard. If you don’t know who he is, do yourself a favor and find out. Clark is one of my heroes, and in this day and age, those are hard to come by.

Clark is un-bought and un-bossed. He gives financial advice on a wide range of topics as well as travel insights. Above all, he is kind to everyone. Clark has a website as well as a podcast.

Clark’s philosophy for homeowner’s insurance is that you should get a policy with the largest deductible you can afford. He says you should only make a homeowner’s insurance claim in the event of a major disaster. While it isn’t right, making claims, even small ones, could possibly make your rates go up as well as put a bad mark on your C.L.U.E. report. In addition, some companies could deny you coverage.

If you don’t have a clue what a C.L.U.E. report is, click here for Clark’s info.

We got the bid for our roof, and it was $3755 which includes tearing off the original roof. The (relatively) low cost is another benefit of living in a smaller home – a 1500 square foot 2 story. While we’re not happy about it, the fact is, we can afford it.

I have to admit, I did second guess myself when hearing all our neighbors talk of getting new roofs with minimal cost. Even so, I am sticking with Clark and taking a long term approach. In any case, it is what it is, and we will be ever thankful to have a roof, especially a new one, over our heads.