Does Homeowners Insurance Cover a Roof Replacement?

Does Homeowners Insurance Cover a Roof Replacement?

A new roof can easily cost thousands of dollars, so when a storm damages your home, one of the first questions is usually:

Will my homeowners insurance pay for a new roof?

Sometimes, yes. But homeowners insurance is not a roof replacement or maintenance plan.

The biggest question usually isn't simply whether your roof needs to be replaced. It's why the roof needs to be replaced.

A roof damaged by a covered windstorm may be treated very differently from a roof that has simply worn out after years of sun, rain and changing weather.

Here's what homeowners should understand.

When Does Homeowners Insurance Cover Roof Damage?

Homeowners insurance generally covers sudden damage to your home caused by events covered by your policy.

Depending on your particular policy, covered causes of roof damage may include things such as:

• Wind
• Hail
• Falling trees or limbs
• Fire
• Certain other sudden accidental losses

For example, imagine a severe Tennessee storm comes through your neighborhood and high winds tear shingles from your roof.

That's very different from discovering that your shingles are deteriorating because the roof has reached the end of its useful life.

Your individual policy, endorsements and the circumstances of the damage ultimately determine whether coverage applies.

What If My Roof Is Just Old?

This is where homeowners sometimes misunderstand what their insurance is designed to do.

Homeowners insurance generally isn't intended to pay for routine maintenance or replace something simply because it has become old or worn.

Suppose your roof is 22 years old. The shingles are curling, granules are coming off, and you've started noticing small leaks when it rains.

You call a roofer, and the roofer tells you it's time for a new roof.

That doesn't necessarily mean you have an insurance claim.

If the roof simply deteriorated over time, replacing it is generally a home-maintenance expense rather than a sudden covered loss.

Now change the situation.

Suppose that same roof was intact yesterday, a severe windstorm comes through overnight, and you wake up to missing shingles and storm-related damage.

Now there may be a covered cause of loss to evaluate.

Same old roof. Different reason for the damage.

That's an important distinction.

Does Hail Damage Mean Insurance Will Replace the Entire Roof?

Not automatically.

Finding hail damage doesn't necessarily mean the insurance company owes for a completely new roof.

The insurer will generally evaluate the extent of the damage, your policy terms, applicable deductible and whether repair or replacement is appropriate under the policy.

There can also be a difference between what a roofing contractor recommends and what the insurance policy is obligated to pay.

A contractor may believe replacing the entire roof is the best construction solution. The insurance claim still has to be evaluated according to the policy.

That's why homeowners should avoid assuming either “I have hail damage, so I'm getting a new roof” or “My roof is old, so nothing will be covered” is automatically correct.

The details matter.

What About a Tree Falling on My Roof?

A tree or large limb falling onto your house is another example of the type of sudden event that may result in a covered homeowners claim.

If a storm causes a tree to fall and damage your roof, the resulting structural damage may be covered, subject to your policy's terms, exclusions and deductible.

But even here, the circumstances matter.

For example, coverage for repairing a house damaged by a fallen tree is a different question from whether your policy will pay to remove a tree that simply falls in the yard without damaging covered property.

Does Homeowners Insurance Cover a Leaking Roof?

It depends on what caused the leak.

That's the recurring theme with roof claims.

Imagine wind damages your roof during a storm, allowing rain to enter the house and damage the ceiling.

That presents a different coverage question from a roof that has been slowly leaking for months because worn shingles or flashing were never repaired.

Simply finding water inside your house doesn't necessarily tell you whether you have a covered homeowners claim. The cause of the water damage matters.

So when someone asks, “Does homeowners insurance cover roof leaks?” there isn't a universal yes-or-no answer.

You have to determine what happened first.

Does the Age of My Roof Matter?

Absolutely.

Your roof's age and condition can affect both insurance underwriting and how a future claim may be settled.

Insurance companies may consider the age, condition and type of roof when determining eligibility, coverage options and premiums.

Depending on the insurance company and policy, an older roof can also affect whether a covered roof loss is settled on a replacement-cost or actual-cash-value basis.

That brings us to an important distinction.

If My Roof Is Covered, Will Insurance Pay the Full Replacement Cost?

Not necessarily.

There are really two separate questions in a roof claim:

Question 1: Is the damage covered?

Then, if it is:

Question 2: How will the policy pay for that covered damage?

Your policy may settle qualifying roof damage based on Replacement Cost Value, Actual Cash Value, a roof payment schedule or other policy provisions.

With Actual Cash Value, depreciation can reduce the claim payment based on factors such as age and condition. Replacement-cost coverage can work differently, although deductibles and policy requirements still apply.

We've covered this subject in much more detail in our article “Replacement Cost vs. Actual Cash Value: The Insurance Difference That Could Cost You Thousands.”

That article is worth reading if you're unsure how depreciation could affect a roof claim.

Don't Forget About Your Deductible

Even when roof damage is covered, your deductible generally applies.

Suppose a covered storm causes $12,000 in roof damage and your applicable deductible is $2,500.

That doesn't necessarily mean the claim payment will simply be $12,000. Your deductible and the policy's loss-settlement provisions have to be applied.

Some homeowners policies may also have different deductibles for certain wind, hail or named-storm losses.

Check the declarations and terms of your individual policy rather than assuming every claim uses the same deductible.

Should I File a Claim Every Time a Roofer Finds Damage?

Not necessarily.

Finding damage and deciding whether to file an insurance claim are related, but they aren't exactly the same decision.

Before filing, it can be helpful to understand:

• What caused the damage
• Approximately when it happened
• The extent of the damage
• Your deductible
• Your policy's roof settlement terms
• Whether the estimated covered damage significantly exceeds the deductible

After a significant storm, document visible damage with photographs or video and take reasonable temporary steps to prevent additional damage when it is safe to do so.

Keep receipts for temporary repairs and avoid making unnecessary permanent repairs before the insurance company has had an opportunity to evaluate the damage.

What If a Roofer Says, “Insurance Will Buy You a New Roof”?

Be careful with guarantees like that.

A roofing contractor can inspect your roof, identify physical damage and provide an estimate for repairs or replacement.

But your insurance policy, not the contractor, determines what your insurance company owes.

The same principle applies to your insurance agent. An agent can help you understand your policy and navigate questions, but the facts of the loss and policy terms ultimately determine whether a particular claim is covered and how it is settled.

After major storms, it's also wise to take your time choosing a contractor. Check credentials, understand what you're signing and be cautious about anyone pressuring you to make an immediate decision.

A Simple Way to Think About Roof Insurance

If you're trying to determine whether homeowners insurance might pay for roof damage, start with these three questions:

What damaged the roof?
A sudden windstorm or falling tree is very different from normal aging.

What does my policy cover?
Policies, exclusions, deductibles and roof endorsements can vary.

How does my policy settle roof losses?
Even when the cause of damage is covered, Actual Cash Value, Replacement Cost Value and other roof provisions can produce very different claim payments.

Answering those three questions will usually tell you much more than simply asking, “Is my roof covered?”

Have Questions About How Your Roof Is Insured?

You don't have to wait until after a storm to find out how your homeowners policy treats your roof.

The Talley Insurance Group can help you review your homeowners insurance coverage, including your deductible and the loss-settlement provisions that may apply to your roof.

If you're unsure whether your current policy provides Replacement Cost Value, Actual Cash Value or another type of roof settlement, contact The Talley Insurance Group for a homeowners insurance review or quote.

Understanding what you have before a claim is usually much easier than discovering it while you're looking at shingles in the yard.

Insurance coverage, exclusions, deductibles, conditions and claim settlements vary by insurance carrier, policy form, endorsement, property, state and individual circumstances. This article is for general informational purposes only and does not guarantee coverage for any particular loss. Your insurance policy and the facts of a specific claim determine whether coverage applies.