As a homeowner, you’ve probably asked, “How often will insurance pay for a new roof?” You may have even wondered if you should try to extend the life of your roof after minor storm damage because you just had your roof replaced a few years ago.
While wondering how often will insurance pay for a new roof, you might be making incorrect assumptions about how insurance handles roof claims. Here, we’ve outlined what factors influence whether your insurance will pay for a new roof.
Does Insurance Cover Roof Replacement? Factors Affecting Your Coverage
Insurance may cover roof replacement, but several factors affect the likelihood that your insurance company will pay for a new roof. These include the details of your insurance policy, the damage your roof has sustained, and the age of your roof.
Consider Your Policy
All insurance policies are different, and when it comes to how often will insurance pay for a new roof, the details of your policy are the biggest determining factor. Many policies exclude certain types of roof damage completely, so don’t just assume that because you have an expensive homeowner’s insurance policy, your roof damage will always be covered.
You must first check your policy to see which type of reimbursement your policy covers. The two types of reimbursement are:
- Actual Cash Value (ACV)
- Replacement Cost Value (RCV)
An ACV insurance policy will take into consideration depreciation when deciding reimbursement. Depreciation refers to the decrease in value of your property over time due to age or wear and tear.
So, the older your roof is, the less money you will receive. If your roof is very old and damaged in a storm, your policy will not cover the entire cost of the new roof. Instead, they will determine the value of the roof immediately before it was damaged by subtracting value for normal wear and tear. That means you will have a substantially higher out-of-pocket cost for a roof replacement if your roof is old.
An RCV insurance policy will not take depreciation into consideration. Instead, your insurance is supposed to reimburse you for the price of replacing your roof with a similar roof to the one you had. RCV insurance policies pay at today’s market price. They are more expensive, but they offer more comprehensive protection.
Both reimbursement types require you to pay a deductible. This is the amount you’re responsible for before your insurance covers the remaining eligible costs. Your deductible may differ depending on what caused the damage. For example, wind and hail claims may have a higher deductible than claims involving other covered events.
Consider the Age of Your Roof
Regardless of which type of reimbursement for which you are eligible, your insurance company may refuse to fully cover the cost of a roof that is past its expected lifespan. For a normal asphalt shingle roof, the expected lifespan is often around 20 years. Metal and tile roofs have a much longer expected lifespan.
If your asphalt shingle roof is 30 years old when hail damages it, your insurance company may assume that the damage was the result of an aging roof, not the storm. They may conclude that your roof would have been able to withstand the hail damage if it hadn’t experienced so much wear and tear. Homeowner’s insurance policies don’t cover normal wear and tear.
Consider the Kind of Damage
As we already discussed, insurance policies won’t cover normal wear and tear. Typically, insurance will only cover a new roof replacement for unexpected events like storm damage or fires. High winds can tear shingles. Fallen tree limbs can crush decking. Hailstorms can dent and crack shingles, causing them to fail in function. When events like these occur and cause damage, your insurance company may approve your insurance claim.
If you have neglected maintenance of your roof or yard, you might not be covered when an unexpected event occurs. Insurance companies consider it your responsibility to look out for the health of your roof, including doing the following:
- Cleaning gutters beneath your roof
- Trimming damaged or weakened trees
- Repairing small issues as they arise
- Completing regular roof inspections
How Much Does Insurance Pay for Roof Replacement?
Generally, the amount that insurance pays for roof replacement is determined by subtracting your deductible and any applicable depreciation from the approved replacement cost. Your policy type determines whether depreciation reduces your final reimbursement.
Suppose a hailstorm damages your asphalt shingle roof, and your insurer approves a full replacement costing $15,000. You have a $2,000 deductible, and the roof has depreciated by $5,000.
- Under an RCV policy: Your insurer would pay $13,000 in total, leaving you responsible for the $2,000 deductible.
- Under an ACV policy: Your insurer would pay $8,000 after subtracting both the $5,000 depreciation and $2,000 deductible. You would cover the remaining $7,000.
Other Factors That May Affect How Much Insurance Pays for Roof Replacement
In a storm-prone state like Texas, some insurers apply different deductibles and coverage restrictions to roof damage claims.
Your deductible may be a fixed dollar amount or a percentage of your home’s insured value. For example, a 2% deductible on a home insured for $300,000 equals $6,000, regardless of the roof replacement cost.
Some RCV policies also contain roof-age provisions or endorsements that change coverage to ACV once the roof reaches a specified age. Check your policy’s declarations page for deductible amounts and review the roof coverage endorsements, exclusions, and loss settlement provisions for restrictions. Your insurer or agent can explain how these terms apply to your claim.
When Will Insurance Pay for a New Roof?
Insurance typically pays for a new roof after your roof replacement claim is approved. Your insurance company will issue payment after assessing the damage and calculating the covered loss. The timing and number of payments depend on your policy.
With ACV coverage, the insurer generally issues payment based on the roof’s depreciated value, minus your deductible.
With RCV coverage, payment often happens in two stages:
- Initial payment: The insurer pays the approved amount minus your deductible and depreciation. Depreciation may be temporarily withheld under an RCV policy and may be reimbursed once the replacement is completed, subject to your policy terms.
- Final payment: After the roof replacement is completed and you submit the required proof of completion, the insurer releases eligible withheld depreciation.
If you have a mortgage, the insurance check may include your lender as a payee. You may need to endorse the check and send it to your mortgage company, which may release the funds as work progresses.
Review your claim settlement letter for payment details, deadlines, and documentation requirements. If you haven’t received payment when expected, contact your insurance adjuster for an update.
So, How Often Will Insurance Pay for a New Roof?
In short, your insurance may pay for a new roof as often as it is needed, provided the damage is covered under your policy and a full replacement is warranted. So, in theory, if you get your roof replaced after hail damage, stay covered with your insurance, and then hail damages your roof again a few weeks later, your insurance may pay for a new roof (or repairs).
If you live in the North Dallas area and haven’t had your roof inspected this year, contact us today for a free roof inspection. Asking how often will insurance pay for a new roof won’t help you get an insurance claim approved when you need it, but taking care of your roof can help. Let us provide you with a comprehensive assessment of your roof.
