Will my insurance pay for the whole roof?
It depends on your policy. Some policies pay the full replacement cost only while the roof is under a certain age, often 10 years, and pay the depreciated value after that. This is often called a roof-age clause. Check your policy or ask your insurance agent whether yours includes one.
What a roof-age clause says
As storms and hail claims have become more frequent, some insurance companies have started offering policies that pay for less of a roof's full replacement cost. A common version pays the full replacement cost while the roof is less than 10 years old. After that, the insurance company may only reimburse the depreciated value of the roof.
When that happens, the depreciation is non-recoverable, and you receive what is called an actual cash value settlement. The homeowner is responsible for the rest of the cost.
How it affects a claim
On a replacement cost policy, the insurance company pays to replace the damaged roof, minus your deductible. Payment is often made in two parts, with the recoverable depreciation paid after the work is complete.
On a policy with a roof-age clause, an older roof is paid at its depreciated value. The cost of the new roof is the same either way, so the difference comes out of the homeowner's pocket.
How to check your policy
Read your declarations page and any roof endorsements, and ask your insurance agent whether your policy pays replacement cost on the roof and up to what age. We highly recommend that home and business owners understand their policy in full before purchasing coverage.
If a storm damages your roof, call us to schedule a free inspection. We can help you through the claim and review your settlement offer with you.
Related Questions
Can I switch to a replacement cost policy?
Many insurance companies offer replacement cost coverage, sometimes with a higher premium or an inspection. Ask your insurance agent what options are available for your home.
Is the deductible separate?
Yes. Your deductible is applied to every settlement, and in Texas the homeowner is required to pay it.
