Let's talk roofs and home insurance

Key Takeaways

• Read your policy so you know what is and isn't covered
• Not all types of roof repairs are covered under a homeowners policy
• Homeowners insurance will not pay for a roof replacement from normal wear and tear, and age. Maintaining your roof is key to keeping it in good condition

Let's face it. Repairing or replacing a roof is expensive.

While prices will vary depending on where you live, the extent of the damage, as well as the size of your home and type of roof you have, you can expect to pay around $1,147 for a basic roof repair in the U.S. However, if you need a full roof replacement, you can expect to pay on average, somewhere in the ballpark of around $11,500.

Facing repair or replacement, many homeowners will turn to their insurance company assuming they will help cover the cost. However, not all roof damage is covered under home insurance so it's important to know your policy.

Here are some general guidelines when it comes to a basic home insurance policy.

Your roof may be covered if it is damaged due to a covered loss.

Wondering whether your roof damage is covered by your homeowners insurance policy? The answer is that it depends on the cause and whether it is considered a covered claim. So, what's a covered claim?

A covered claim in homeowners insurance means your policy will only pay for certain types of damage or loss caused by unexpected events that are outlined in your policy.

Under a standard homeowners insurance policy, roof damage from wind, hail, fire, and certain types of water damage may be considered a covered claim event. However, damage caused by an aging roof, poor maintenance, normal wear and tear, flooding, or earthquakes is usually not included.

For example, if a storm causes a tree to fall on your roof and damages it, your homeowners insurance will likely help cover the repairs. However, if your 20-year-old roof starts losing shingles due to age and lack of maintenance, leading to leaks, it's considered a maintenance issue—not an unexpected event covered by insurance.

What about fixing roof leaks?

Your homeowners insurance policy may cover a roof leak, but only if it's caused by a covered event such as fire, hail, or wind damage. In these cases, your policy may help cover the cost of repairs—unless it specifically excludes wind or hail.

Keep in mind, however, that most homeowners insurance policies typically won't cover roof leak repairs or damage that are a result of an aging roof, lack of upkeep, or general wear and tear.

6 scenarios where your roof is generally not covered

In general, you can expect a standard homeowners insurance not to cover roof damage caused by the following six scenarios:

• Wear and tear. Because roofs naturally deteriorate over time, insurance companies typically won't cover damage caused by aging materials in your roof that should have been replaced.
• Lack of maintenance. Routine roof upkeep, such as replacing missing shingles or clearing debris, and treating moss, is the responsibility of every homeowner—not the insurance company.
• Mold and rot damage. Unless caused by a sudden, covered event, mold and rot stemming from unaddressed long-term moisture issues are usually excluded.
• A bad roof job. Don't expect the insurance company to cover damage claims if your roof was installed incorrectly or with defective materials.
• Flooding and earthquakes. Most standard homeowners policies won't cover roof damage that is caused by a flood or earth movement issues. You'll need to purchase a separate flood or earthquake policy.
• Pest or animal damage. Roof damage caused by rodents, birds, or insects are generally considered maintenance problems, not covered losses.

What are roof endorsements and special policy riders?

A roof endorsement (also referred to as a policy rider) is an extra feature that you can often add onto your homeowners insurance policy that changes how roof damage claims are handled.

Depending on your insurer, some endorsements affect policy coverage terms, how payouts are calculated, limits and exclusions, while others offer you enhanced protection.

If you live in an area where severe weather is common, such as frequent hailstorms, hurricanes, or heavy snowfall, a roof endorsement or policy rider can be a smart add-on. While it will cost you a bit more in premiums, endorsements are a way for you to get the extra protection you need from storm-related damage, preventing unexpected out-of-pocket costs.

Roof endorsements or policy riders that may be offered by insurers can include

• Extended replacement cost coverage that covers the full cost of replacing your home's roof—even if it exceeds your policy's limit.
• Guaranteed replacement cost coverage to ensure that your roof is replaced at full value—regardless of depreciation.
• Impact-resistant roof endorsement provides discounts for homeowners who install impact-resistant roofing materials.
• Ordinance or law coverage that covers any additional costs if your local building codes require upgrades during a roof repair or replacement.
• Windstorm or hail endorsement provides extra coverage if you live in an area prone to severe weather. It helps protect your home when standard policies exclude wind or hail damage, so you can have financial support for making repairs.

How are roof claims calculated?

Roof claims are calculated based on actual cash value (ACV) or replacement cost value (RCV), depending on your homeowners insurance policy.

Simply put, if your policy covers ACV, your payout will be based on the roof's current depreciated value, not the cost of a new roof. If your policy covers RCV, your insurance company will pay the full cost to replace your roof with a new one of similar quality, without factoring in depreciation. Here are two quick examples of each

• With ACV: A new roof costs $15,000, but your 20-year-old roof has depreciated by 80%. Therefore, your payout would be $3,000 for a covered claim, minus your deductible.
• With RCV: Your roof is damaged in a hailstorm, and the cost to replace it with a similar quality roof is $15,000, your insurance company will pay the full cost to replace your roof, minus your deductible.

If you aren't sure what type of coverage you have, talk with your insurance provider.

Can a new roof lower my insurance cost?

If you're considering a roof replacement, check with your insurer to see what discounts might apply. The truth is, older roofs are more prone to wear and tear, leaks, and structural issues, making them a higher risk for insurers.

New roofs, however, are more durable because they can better help to reduce the risk of damage from storms, leaks, and other hazards. For this reason, insurance companies often offer discounts for roofs that are newer and that use more durable materials such as those that are impact or fire resistant. If your roof qualifies, you could see a reduction in premiums by 5% to 35%.

What can I do to help keep my home's roof in good condition?

To keep your roof in its best possible shape, inspect it regularly, and address any maintenance and repairs quickly. This can include clearing away debris and fixing minor damage issues sooner rather than later. A little preparation now can save you money, time, and headaches in the future.

How do I find a roofing contractor I can trust?

Roofing scams are not uncommon, and these scammers can target areas that were recently hit by storms. Before hiring a contractor for repairs or a roof replacement, consult your insurance provider who may be able to provide you with a list of preferred reputable contractors in your area.

Taking this extra step can help protect you from fraud and ensure quality workmanship. Afterall, your home's roof is worth it!