Most home insurance policies help with the cost of replacing your roof when it’s damaged by a covered peril. However, the circumstances surrounding the loss and the details in your policy language influence what’s covered and for how much.
How does home insurance cover roof replacement?
Your roof is considered part of the structure of your home. This means it’s protected by your dwelling coverage, also called Coverage A. You should also know that if covered damage to your roof makes your home uninhabitable, then you may also be protected by loss of use coverage.
Two more important parts of understanding how home insurance covers roof replacement are coverage amounts and deductibles. The coverage amount is the upper limit your insurance company pays for damage to your home, and a deductible is the amount you're responsible for when you file a claim.
So when your insurance company covers roof replacement, it covers up to the limits of your policy and minus any applicable deductible.
When does home insurance cover roof replacement?
We’ve referenced “covered damage” and “covered perils” a couple of times, but what exactly does that mean? In truth, that depends on the specifics of your policy.
Covered perils
The events that can damage a home are called perils in the insurance industry. When roof damage is caused by a peril that’s covered by your policy, then your insurance company likely pays for repairing or replacing your roof.
Covered perils on a standard home insurance policy include many of the events that commonly cause roof damage, such as storms, wind, hail, fire, and falling trees.
Natural disasters vs wear and tear
Natural disasters are often considered covered perils in home insurance – save for a few, like earthquakes, landslides, and floods. But catastrophes like tornadoes, hurricanes, and wildfires are excellent examples of the sudden, accidental damage that home insurance is designed to protect against.
However, normal wear and tear is not. A roof that needs to be replaced simply because it’s showing signs of age is not covered by insurance.
What type of roof damage is not covered?
No policy can cover every event that might cause damage, so roof damage may not be covered under certain circumstances. We’ve listed some examples here.
Policy exclusions
The most common type of home insurance policy, the HO-3, lists specific perils that it does not insure against. For example, an HO-3 policy does not cover damage caused by:
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Earthquake.
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Flood.
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Government action.
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Intentional acts.
Roof damage caused by an excluded peril is not covered by home insurance.
Normal wear and tear
As we mentioned earlier, wear and tear is not covered by home insurance. This is partly because home insurance is for sudden and accidental damage, not damage that happens over time.
Unfortunately, you can’t rely solely on your roof’s age to decide it’s time to replace it. A roof's lifespan depends on the quality of the roofing materials used and the climate and conditions where the home is located. A standard asphalt roof may have a 20-year lifespan in the Midwest but might only last 15 years along the coast.
As a homeowner, that means you want to look for signs your roof is getting older and may need replacing, like sagginess or curled shingles.
Neglect and poor maintenance
As with wear and tear, roofs that aren’t properly maintained or that show signs of neglect aren’t covered by homeowners insurance. This means if you really can’t ignore a small problem, like a leak or a missing shingle. These can easily turn into bigger issues, so you want to address necessary repairs to avoid a claim being denied.
How much will home insurance pay for roof replacement?
Once your insurance company determines that your roof damage is covered and requires a full roof replacement, it will pay the claim. However, several factors can also come into play.
Loss settlement type: Replacement cost vs. actual cash value vs. scheduled
Your home insurance policy probably uses one of these three loss settlements for paying roof claims:
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Replacement cost value (RCV). When your roof is insured for its RCV, your insurance company pays for a replacement using current prices.
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Actual cash value (ACV). A policy that covers your roof for its ACV pays its depreciated value in a claim.
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Scheduled. With a scheduled loss settlement, your claim payout adjusts to a set percentage of the full replacement cost based on criteria determined by your insurer. Age is a common basis for a scheduled loss settlement.
While standard coverage usually starts as RCV, it can be changed with an endorsement. In some cases, your insurer may decide it will only offer coverage if you have a certain type of loss settlement, but you may also be able to purchase an endorsement that modifies your settlement type.
Age of the roof
Roof age can impact your claim payout if your roof is insured for its actual cash value. An ACV policy subtracts depreciation in a loss settlement, and an older roof will have depreciated more than a new roof made of the same materials.
Age can also play a role if your home insurance uses a scheduled loss settlement for roof claims. Many insurers use the roof age and the type of roof material to determine the payout schedule.
Condition before damage
If your roof was neglected or repeatedly patched, its condition may have contributed to the claim damage. This could lead to a lower payout or a denial of all or part of your claim.
Policy limits and deductibles
The policy limit, also called the limit of liability, impacts your claim settlement. Your home insurance company only pays up the coverage amount, unless you have an endorsement that increases your limits. For example, an extended replacement cost endorsement can raise your dwelling coverage by 10% to 50%.
Similarly, your deductible reduces your claim payout. A deductible is the amount you cover in a loss. So if you have a $500 deductible and a $1,000 claim, your claims settlement is $500.
Do you need a separate roof endorsement or rider?
Getting an endorsement or rider that adjusts your coverage for roof-related damage may make coverage possible for people who don’t meet underwriting guidelines.
For instance, people with older roofs or who live in a disaster-prone area, like the Gulf coast might be able to get home insurance if they add:
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A roof surfacing payment schedule (RSPS) endorsement. An RSPS modifies your loss settlement to pay a set percentage of your RCV based on your roof’s age and materials. The schedule typically only applies to roof claims stemming from wind and hail, but could apply to other claims depending on your policy’s details.
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Actual cash value coverage. Some insurance companies offer riders that change the coverage for your roof to an actual cash value settlement.
Both of these options also result in lower premiums.
Roof repair vs. roof replacement
Let’s say you had some roof damage that your insurance covered, and you’re trying to decide whether to repair or replace your roof. Keep in mind that your insurance company will not pay for a full replacement if a repair is sufficient to bring your roof back to its pre-loss condition. Here are a few factors to consider.
Age and expected lifespan
If your roof is on the newer side, say 10-years old or less, then you might want to make repairs and be done with it. But the closer your roof is to the end of its lifespan and has significant damage, then your insurer might consider replacing your roof instead of repairing the damage.
Even if your insurance company only pays for repairs, you might consider paying the additional amount out of pocket to have your roof replaced now. Insurance companies can have tight underwriting rules when it comes to roofs, so a new roof can save you a whole lot of headaches later on.
An opportunity for an upgrade
Even if your roof is a total loss, your claims check won’t be enough for an upgrade to your roof. But if your roof is insured for its replacement cost value and you have some savings in the bank, this might be a good time to look into an even better roof – especially if you need one that mitigates your wind risk.
Aesthetics
When damage is minor and located in one spot, then repairing it might be the right choice, and is probably all that your insurance company will cover. However, homes with multiple roof repairs can look like patchwork. If that’s a problem for you, then you may want to consider paying the additional amount to replace your roof on your own.
How to file a claim for roof replacement
Prompt and proper filing of your claim may help facilitate a smoother claims process. Here are the steps for filing a claim for a roof replacement.
Document the damage
Document the date, time, and location of your roof damage, including what you believe is the cause. A good way to do this is through photos and videos, including any photos you have that show the roof condition before the damage occurred.
Just remember to be careful when recording your damage. Stay safely on the ground and avoid any risky situations.
Mitigate your damages
You want to take steps to prevent further damage, so make whatever temporary repairs you can. This might mean throwing a tarp over a hole in your roof or plugging up leaks.
The same caveat about staying safe applies here, too. Don’t do anything that jeopardizes your safety!
Contact your insurance company
Connect with your insurance company and let them know you’ve experienced a loss. This is called a first notice of loss, and it can usually be completed online or by calling your insurer. From there, your insurer may provide specific directions. Make note of them, and be sure to keep a record of your communications.
Get an estimate from a roofing contractor
In many cases, you’ll need to secure the services of a licensed roofing contractor to inspect your roof damage and provide an estimate for repairs. The only time you won’t have to do this is if your insurance policy has an option to repair provision that your insurer invokes.
Common mistakes to avoid when filing a roof claim
Here are some common mistakes homeowners may make when submitting a roof replacement claim.
Exaggerating damage
Be upfront about any information regarding the predamaged condition and age of your roof, along with any damage it sustained. Don't make your issue worse than it really is as this could be insurance fraud.
Waiting to file a claim
File your claim accurately and promptly. Storms can generate a large amount of roof claims, and you want to reserve your place in line for processing your claim. Additionally, most insurance policies include language that requires timely claim filing.
Having unreasonable expectations
Thinking you might get an entirely new roof when you’ve only lost a few shingles or expecting your insurer to cover damage that’s excluded from the policy is only setting yourself up to be disappointed.
Misunderstanding the limitations of your coverage
You’re probably not thinking about your insurance policy the moment your roof is struck by lightning or blown off in a storm. But at some point during the claims process, you may want to review your coverage amount and other provisions in your homeowners insurance policy.
Better yet? Read your policy today so you’re prepared for the worst case scenario.
How to choose a roofing contractor for insurance claims
Many states don't require you to use your insurer's roofing contractor, but it might be a good idea. That way, you know the contractor is licensed and insured and that he or she works well with adjusters. All of these can make the claims process easier for you.
However, if you do want to get your own contractor, be wary. Storms sometimes bring out unscrupulous contractors hoping to line their pockets with your hard-earned money.
Tips for finding a reliable roofing contractor
Some tips for finding a reliable roofing contractor include:
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Getting multiple estimates to compare.
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Read customer reviews.
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Ask for their license and insurance information.
You also don’t want to work with a contractor that pressures you or asks you to sign an incomplete contract.
FAQs: Roof replacement and insurance coverage
Does homeowners insurance cover roof leaks?
Home insurance usually covers leaks when they’re caused by a covered peril. If a leak is caused by age or lack of maintenance, your policy likely doesn’t cover it.
Does roof insurance cover replacement for wear and tear?
As with other major systems of your home (HVAC, electrical, and plumbing), home insurance excludes coverage for wear and tear.
Can I get a new roof for free through insurance?
Insurance companies are in the business of making you whole after a loss, so expecting a free roof is only realistic if your roof is a total loss, your policy insures your roof for its entire replacement cost, and the circumstances causing the loss are covered by your policy. But even then, your coverage most likely includes a deductible, and that cost is on you.
