Your roof is your home's first line of defense, and it is also one of the first things an underwriter looks at. Age and condition can affect your premium, your coverage type and the check you receive after a storm.
Replacement Cost vs. Actual Cash Value
With replacement cost coverage, the insurer pays to replace damaged roofing with new materials, less your deductible. With actual cash value (ACV), the payment is reduced for depreciation based on age and wear. On an older roof, ACV can leave you with a large gap between the check and the bill.
Roof Payment Schedules
Many carriers use a roof surfacing payment schedule that pays a smaller share of replacement cost as the roof ages. For example, a 5-year-old roof might be paid nearly in full, while a 18-year-old roof is paid at a much lower percentage. Schedules differ by carrier, so it pays to compare.
Age Limits and Wind/Hail Deductibles
- Some carriers limit or decline coverage for asphalt shingle roofs older than about 15 to 20 years, or require an inspection.
- Wind and hail deductibles are often a percentage of your home's value, not a flat amount, so they can be much higher than your standard deductible.
- Roof material matters: impact-resistant shingles can earn discounts with some carriers.
What Homeowners Should Do
- Know your roof's age and keep records of replacements and repairs.
- Ask whether your policy pays replacement cost or ACV on the roof.
- Understand your wind/hail deductible before storm season.
- Have your roof inspected, especially before you buy or renew a policy.
- Fix small problems early; neglect is rarely covered.
Coverage varies by carrier and policy. This article is educational only.