Does Home Insurance Cover a New Roof?

Home insurance protects your dwelling and personal belongings from unexpected damage. A home’s roof, a primary shield against elements, is a significant covered component. Understanding how policies address roof repair or replacement is important for homeowners.

When a New Roof is Covered

Home insurance policies typically cover roof damage from sudden, accidental events, known as “covered perils.” These include windstorms, hail, fire, falling objects, vandalism, sudden collapses, and damage from ice or snow. If a leak occurs due to a covered peril, the policy may pay for roof repairs and any resulting damage to property or the home’s interior.

Home insurance generally excludes damage from gradual issues or homeowner negligence. This includes normal wear and tear, age-related deterioration, or lack of maintenance. Rot, mold, insect infestations, and faulty workmanship are also not covered. Standard policies do not cover damage from floods or earthquakes, which require separate policies. Claims may be denied if damage could have been prevented by proper upkeep.

How Payouts are Determined

Insurance companies use two methods for roof damage payouts: Actual Cash Value (ACV) or Replacement Cost Value (RCV). ACV policies factor in depreciation, the loss of value over time due to age and wear. An ACV payout reflects the roof’s depreciated value, meaning reimbursement will be less than a new roof’s cost. For example, a 10-year-old roof with a 20-year lifespan would have lost half its value, and the payout would reflect this reduced value.

RCV coverage aims to cover the full cost of repairing or replacing the damaged roof with new materials of similar kind and quality, without deducting for depreciation. While RCV policies generally have higher premiums, they significantly reduce out-of-pocket expenses. RCV payouts are often made in two stages: an initial payment based on ACV, and a second payment for the depreciated amount once repairs are completed and documented. This “recoverable depreciation” allows the policyholder to receive the full replacement cost after the repair work is verified.

A deductible applies regardless of the payout method. This is the amount the homeowner must pay out of pocket before insurance coverage begins. Deductibles can be a fixed dollar amount (e.g., $500 or $1,000) or a percentage of the home’s insured value (e.g., 1% to 5% for wind and hail damage). For example, if a $5,000 roof repair has a $1,000 deductible, the homeowner pays the first $1,000, and the insurer covers the remaining $4,000. If the repair cost is less than the deductible, filing a claim may not be financially beneficial.

Filing a Roof Damage Claim

Filing a roof damage claim involves several steps. First, homeowners should document the damage immediately with clear photos and videos. Secure the property, such as by placing a tarp over damaged areas, to prevent further issues. Major repairs should generally wait until after the insurer’s assessment. Gather all relevant policy information, including the policy number and coverage details.

Promptly contact your insurance company to report the damage. Most insurers have specific timeframes for filing claims, so acting quickly is important to avoid potential denial. The insurance company will assign an adjuster to inspect the damage and evaluate the claim. Homeowners should be present during this inspection to provide information and answer any questions.

Obtain multiple repair estimates from qualified roofing contractors after the adjuster’s visit. These estimates will help substantiate the cost of repairs or replacement and can be provided to the insurance company. Once the claim settlement offer is received, review it carefully to ensure it aligns with the estimates and policy terms. If the offer is insufficient, homeowners can negotiate with the insurer, potentially with a roofing contractor or public adjuster, to reach a fair resolution.