Does Home Insurance Cover a New Roof?
Decipher home insurance coverage for roof damage. Understand what's covered, financial factors, and the claim process.
Homeowners often wonder if their insurance covers a new roof. Home insurance serves as a financial safeguard, protecting against unexpected damages. Given its exposure to the elements, a roof’s coverage is a frequent concern for policyholders.
Covered Causes of Roof Damage
Standard home insurance policies cover sudden and accidental roof damage caused by specific events, or perils. These policies cover damage from windstorms, including hurricanes and tornadoes, and hail. Damage from the weight of ice, snow, or sleet is also covered, as are incidents like fire and lightning strikes. If a tree or other object falls onto your roof, the resulting damage is included. Vandalism or malicious acts that damage the roof may also be covered.
However, policies do not cover all types of roof damage. Exclusions include wear and tear, age, or lack of proper maintenance. This means gradual deterioration, such as curling shingles or minor cracking due to age, is not covered. Damage from neglect or faulty installation is also excluded.
Standard policies do not cover floods or earthquakes, which require separate policies. Cosmetic damage, where appearance is affected but function is not, may also be excluded by some policies, especially for wind and hail damage.
Factors Affecting Your Claim Payout
Claim payouts for covered perils depend on your policy type: Actual Cash Value (ACV) or Replacement Cost Value (RCV). An ACV policy pays the depreciated value of your roof, accounting for age and wear. This means the payout is less than a new roof’s cost. For instance, if a roof cost $20,000 and depreciates by $1,000 per year, after 10 years its ACV would be $10,000 before considering your deductible.
RCV policies cover the cost to repair or replace the damaged roof with new materials of similar kind and quality, without depreciation. While premiums are higher, RCV policies reduce out-of-pocket costs. Many RCV policies pay in two stages: an initial ACV payment, followed by recoverable depreciation once repairs are complete and proof of replacement is provided. This recoverable depreciation is the difference between the actual cash value and the full replacement cost.
Your deductible is the amount you pay out-of-pocket before coverage begins. Deductibles can be a flat amount, such as $500 or $1,000, or a percentage of your home’s insured value. Percentage-based deductibles are common for wind or hail damage claims, particularly in regions prone to such events, and can range from 1% to 10% of the home’s insured value. For example, a 2% wind/hail deductible on a $200,000 home would mean a $4,000 out-of-pocket expense.
Steps to File a Roof Damage Claim
When roof damage occurs, document it with photos and videos, noting the date and circumstances. While major repairs await insurer approval, make temporary repairs like placing a tarp to prevent further damage. Keep records of these repairs.
Contact your insurance provider promptly to start the claims process. This can be done by phone, online, or via a mobile app. Have your policy details ready. The insurer will assign a claim number and dispatch an adjuster to assess the damage.
Be present during the adjuster’s inspection to discuss the damage and provide documentation. The adjuster evaluates the cause and extent of the damage to determine coverage. Review the insurer’s settlement offer carefully to ensure it aligns with necessary repairs and policy terms, including ACV or RCV provisions. Once an agreement is reached, payments are disbursed to facilitate the repair or replacement of the roof.