Arguably one of the most important investments into your home, a roof should protect your home and family whilst increasing your curb appeal and overall appearance of your house.

And while a new roof is not as expensive upfront as siding projects can be, it’s still a pricey investment that many homeowners can’t afford without budgeting or financing. So the next question many homeowners ask is: Will my home insurance cover a roof replacement?

The answer is, like many answers in the home improvement industry, that it depends. But we can explain exactly what insurance might cover and how to determine whether your roofing project falls under your policy coverage.

There are two main factors in whether your roof replacement will be paid for by insurance:

1. The reason you need a roof replacement and
2. What type of insurance coverage you have.

So let’s dive right in: Will your insurance pay for your new roof?

Why Do You Need a Roof Replacement? The Reason Matters More Than You Realize

It’s important to understand how the reasoning behind your roof replacement affects your insurance coverage. When you process a claim, your insurance adjuster will investigate the reasoning behind your roof replacement. Knowing now which scenarios qualify your roofing project for insurance coverage can save you a lot of time.

Here are the most common reasons for roof damage:

General Wear and Tear

If your home is due for a roof replacement because you’re noticing signs of general wear-and-tear or old age, insurance will not cover your replacement. While policies vary from home to home, generally insurance does not cover maintenance. Replacing your asphalt shingles at the end of its lifetime falls under maintenance.

Natural Disasters

If your home was damaged in an ecological disaster (tornado, earthquake, storm, etc.) coverage depends on your policy. Unfortunately, many insurance companies will exclude coverage for ecological disasters in the base home ownership policies. You would most likely require an additional paid policy for your home to be covered during an ecological disaster.

If you’re unsure what type of policy you have, contact your insurance provider or mortgage lender to start looking. Instructions and explanations on how to apply and appeal for insurance coverage start through your insurance provider.

Pest or Animal Damage

If an animal damaged your roof, coverage could depend on the nature of the damage. For instance, if a raccoon tore up your asphalt shingles, insurance would likely cover it as the one-time incident affected your home’s safety and value. However, if a family of raccoons burrowed into your attic 4 months ago and you never noticed until they tore up your roof, that would be different as the onus is on the homeowner to conduct regular maintenance.

Burglary or Vandalism

If there was vandalism or a break-in that damaged your roof in the process, your insurance will likely cover the repairs. This unexpected, irregular damage to your home would most likely be covered by dwelling insurance, the most common type of homeowners’ coverage. Depending on your policy, some of the stolen belongings may be recoverable as well.

Curb Appeal

If you want to replace your shingles because you don’t like the color, insurance will not cover that. This would be considered a cosmetic change, not a property-threatening one, and wouldn’t be under insurance.

Identifying the cause behind your roof replacement is a vital place to start understanding whether insurance will cover your renovation. The next step is to identify what type of coverage you have within your policy.

#2 The Type of Insurance Coverage You Have Can Change How Much You Pay Out of Pocket

If you’ve determined that your roofing project will be covered under your home insurance policy, then the next step is determining how much of the project costs is covered.

There are two main types of home insurance coverage in the United States:

1. Replacement Cost or
2. Actual Cash Value

‘Replacement Cost’ Will Cover Your Whole Roof

Replacement Cost coverage means that your insurance will cover the cost of the replacement.

This means if you receive a quote for $15,000 to replace your entire roof, insurance will cover $15,000 of the project.

Replacement Cost insurance often means a more expensive premium. Additionally, because roofing is quite subject to wear and tear, most insurers only offer Actual Cash Value for roofing specifically.

‘Actual Cash Value’ Means You Pay Out of Pocket

Actual Cash Value policies are when the insurance covers the cost of your asset with depreciation taken into account.

Let’s say your 10-year-old asphalt shingle roof was damaged in a storm, and you need the whole roof redone. Actual Cash Value will cover how much your roof was worth at the time of damage, which we’ll say is $5,000.

If the estimate for a new roofing project is $15,000, then your insurance will only cover $5,000—leaving you to pay $10,000 out of pocket.

It sounds better to always have replacement cost insurance, right? But here’s the catch: Replacement cost insurance often means a higher premium for the homeowner to pay. 

There are too many variables for a straightforward, one-size-fits-all answer, but here’s a range we grabbed from Forbes Homeowners Insurance Calculator for the three territories we serve: Georgia, Portland, and Washington State. Each of these ranges are programmed to be:

• $500,000 dwelling
• $250,000 personal property
• $500,000 liability coverage
• $50,000 additional living expenses
• $1,000 deductible

Again, this information is to give you an idea of how much home insurance costs can vary on location, disregarding other variables. To get the most accurate information on what your insurance will cover, go directly to your insurance provider.

Pacific Exteriors Offers Competitive Financing Plans for All Homeowners

Your understanding your insurance policies is a great place to understand what you need to budget for and what the premiums you pay will be used for. These options don’t only cover exterior projects, like siding and roofing, but the valuable belongings you have within your home as well.

If you’re looking for more support on affording your roof replacement, Pacific Exteriors is proud to offer a wide variety of flexible payment plans through our financing partner, Greensky.

If you have any questions, we’re happy to help. Fill out the form to get your questions answered or give us a ring any time.