For many years, the expectation has been that if a storm damaged your roof and the claim was approved, insurance would pay to replace it (minus the deductible).
Today, that expectation is changing. As claim costs continue to rise, many insurance companies have introduced new ways of handling roof coverage.
Changes to Watch: Replacement Costs and Percentage Wind & Hail Deductibles
Instead of paying the full cost to replace an older roof, some policies now reduce the claim payment based on the roof’s age and expected lifespan.
For example, if your roof is 15 years old, your insurer may determine it has already lost a significant portion of its value. If it’s damaged in a covered storm, the claim payment may reflect that depreciated value instead of the full replacement cost.
In addition to changes in how roofs are valued, some insurance companies are also replacing a flat-dollar wind and hail deductible (such as $1,000 or $2,500) with a percentage deductible.
A percentage deductible is based on the insured value of your home rather than a fixed dollar amount. For example, if your home is insured for $500,000 and your policy has a 1% wind and hail deductible, your deductible for a covered wind or hail loss would be $5,000.
It’s important to note that this percentage deductible typically applies only to wind and hail claims. Your deductible for other covered losses—such as fire, theft, or water damage (where covered)—often remains the standard all-perils deductible shown on your policy.
As insurance companies continue adjusting their approach to severe weather losses, it’s a good idea to understand not only how your roof is covered, but also which deductible applies before a claim occurs.
Why are Insurance Companies Making These Changes?
Roof claims have become one of the largest drivers of homeowners insurance losses. Rising construction costs, more frequent severe weather, and increasing claim expenses have led many carriers to adjust how they insure roofs, particularly older ones.
Recent severe weather events, including Hurricane Helene, accelerated many of these changes. Billions of dollars in insured losses reinforced insurers’ concerns about the growing frequency and cost of catastrophic weather, prompting many companies to reevaluate how they insure roofs while working to keep coverage available.
What We’re Seeing
Here are some of the trends we’re seeing:
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Eligibility requirements based on your roof’s age or condition.
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Roof depreciation schedules or Actual Cash Value (ACV) settlements added at renewal.
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Separate wind and hail deductibles, with some companies implementing both.
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Changes beginning when a roof is as little as 11 years old, with others starting at 15 years or later.
Because every insurance company has its own guidelines, two homeowners with similar homes may have very different roof coverage depending on their carrier and policy.
What To Do Now
The best time to understand your coverage is before you have a claim. We recommend:
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Knowing the age of your roof.
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Verifying the age of your roof on your current insurance policy.
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Keeping records of roof repairs or replacement.
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Having your roof inspected by a local, reputable roofer if you’re unsure of its condition.
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Reviewing your homeowner’s policy to understand how your roof is covered
Every insurance company is making changes a little differently. Some are using roof depreciation schedules, some are increasing deductibles for wind and hail, some are doing both. That’s why reviewing your policy has never been more important. A quick insurance review can help you understand how your home is covered before you need to file a claim.
If you’d like to review your policy, contact us. We’re happy to explain your roof coverage, endorsements, and deductibles.
Choosing the right insurance agent is one of the most important decisions you will make. The Turner Agency, Inc. is a local Trusted Choice® independent insurance agency headquartered in Greenville, South Carolina. Serving the Upstate of South Carolina and beyond since 1962, we offer a variety of business and personal coverage choices and can customize an insurance plan to meet your specialized needs.
The information in this article was obtained from various sources and is not all inclusive regarding the subject matter. This content is offered for educational purposes only.
