If a hail storm hit your house in Colleyville, Grapevine or Keller and your roof is getting older, you may be wondering whether insurance will still pay to replace your roof. The answer depends on two things: whether your roof has hail damage, and what your insurance policy says about your roof. I’ve been on hundreds of roofs across North Texas after storms, and below are 6 questions about hail damage on an older roof, answered mostly with what the Texas Department of Insurance says.
Question 1: Will insurance pay to replace an old roof?
Home insurance pays for storm damage, not for a roof that is just old. An older roof with hail damage can still be covered, but a roof that is only worn out usually isn’t covered.
The Texas Department of Insurance says your insurance company won’t pay for a new roof just because it’s old or worn out. The department also says you can file a claim if a storm, tree, or something else damaged your roof. So for an older roof, the first question is whether hail damaged the roof, and a roofer or general contractor on your roof can identify that damage. If hail did damage your roof, how much your insurance company pays depends on your policy and your roof’s age. Question 4 shows how little some policies pay for an older roof.
Question 2: Can my insurance company change my roof coverage as my roof gets older?
As a roof gets older, some insurance companies switch the roof coverage to actual cash value, which pays less for an older roof than replacement cost coverage. Question 6 shows where you can check your own policy.
The Texas Department of Insurance says that as roofs age, some companies will switch to actual cash value. The department also says that if your roof is in poor condition, your company might not cover your roof at all. Your insurance company should tell you about any change to your roof coverage, and the department says that every time you renew your policy, you should check to see if there are changes to your roof coverage.
Question 3: What’s the difference between replacement cost and actual cash value?
Replacement cost coverage pays what a new roof costs at today’s prices, minus your deductible, without subtracting for your roof’s age. Actual cash value coverage also subtracts depreciation, so the insurance company pays less for an older roof.
The Texas Department of Insurance says replacement cost coverage pays to repair or replace your house and personal property at current prices. Actual cash value coverage pays replacement cost minus depreciation, and depreciation is a decrease in value because of wear and age.
With replacement cost coverage, the department says the company will pay with two checks. The first check is a partial payment. The department says your insurance company sends the rest of your claim amount after you’ve started repairs. Your insurance company can tell you what proof of the repairs the insurance company needs before sending the rest.
With actual cash value coverage, the policy pays your roof’s value after depreciation, minus your deductible. The department says you would have to pay the rest of the cost of the new roof out of pocket.
Question 4: How much will insurance pay for a 20-year-old roof?
On an actual cash value policy, the insurance company may pay very little for an older roof after your deductible is subtracted. In one Texas Department of Insurance example, an actual cash value policy pays nothing for a 20-year-old roof.
The Texas Department of Insurance uses an example of a house insured for $200,000 with a 2% ($4,000) deductible, where a storm damaged the whole roof and a new roof costs $10,000. Here is what each policy would pay in the department’s example:
- Replacement cost policy: the policy pays $6,000 for the roof ($10,000 minus the $4,000 deductible), whether the roof is 5, 10 or 20 years old.
- Actual cash value policy, 5-year-old roof: the roof’s actual cash value is $8,500, so the policy pays $4,500.
- Actual cash value policy, 10-year-old roof: the roof’s actual cash value is $7,000, so the policy pays $3,000.
- Actual cash value policy, 20-year-old roof: the roof’s actual cash value is $4,000, the same as the deductible, so the policy pays $0.
Your numbers may be different from the department’s example, because your home’s insured value, your deductible and the cost of your roof may be different. If your deductible is a percentage of your home’s insured value, the department says you should check the dollar amount. You pay the deductible yourself. The department says it’s illegal for contractors to waive your deductible or help you avoid paying it.
Question 5: Can an older roof have hail damage if it doesn’t leak?
An older roof can have hail damage even if the roof doesn’t leak. A roofer or general contractor on your roof can identify and photograph the hail damage.
Most homeowners I meet link roof leaks with severe wind storms, not with hail. If the shingles are still on, nothing looks out of place and nothing leaks, homeowners figure the hail didn’t do enough damage for a claim, or didn’t do any damage at all.
I can’t say I’ve ever seen hail hit a shingle without knocking granules off. The Insurance Institute for Business & Home Safety, a research group, tests shingles for hail damage such as dents, tears, and granule loss. Granules knocked off where hail hit a shingle are hail damage your contractor can photograph, even on a roof that doesn’t leak.
On an older roof, your contractor’s photos of each hail hit matter, because insurance pays for storm damage and not for normal wear.
Question 6: How do I find out what my policy pays for my roof?
The first page of your insurance policy shows your coverage and your deductible. Your insurance agent can tell you whether your roof has replacement cost or actual cash value coverage.
The Texas Department of Insurance calls the first page of your insurance policy the declarations page. Here’s who does what to learn what your policy pays for your older roof:
- You: look on your declarations page for “replacement cost” or “actual cash value” for your roof. If you can’t tell which one covers your roof, ask your insurance agent.
- You: check the dollar amount of your deductible. If your deductible is a percentage, multiply that percentage by your home’s insured value (2% of $200,000 is $4,000), or ask your agent for the dollar amount.
- You: read the last pages of your latest renewal. The department says to look at the last pages of the renewal to see if there are any new endorsements or exclusions. An endorsement is a change added to your policy, and an exclusion is something your policy doesn’t cover.
- You: check the roof age on your policy. The department says to make sure house details like your roof age are correct, because insurance companies use those details to decide what to charge you.
- A roofer or general contractor: inspect your roof for hail damage. Your contractor should inspect the whole roof and take photos of any hail damage the contractor identifies.
- You: check your filing deadline for the storm date. The department says some policies have a one-year deadline unless you can show good cause for the delay. In my experience, the deadline is typically about 365 days from the storm date, each storm date has its own deadline, and missing one storm’s deadline loses the claim for that storm only. Your policy or your insurance agent can tell you your exact deadline.
- You: decide whether to file a claim. Whether to file a claim is your decision, once you know what damage your contractor identified and what your policy pays for your roof.
If your policy has replacement cost coverage and your claim gets approved, my post Hail Claim Approved? Why the First Check for Your Roof Is Short explains the two checks. If your claim was already denied, the denied claim section on my homepage covers what comes next. If hail hit your older roof in Colleyville, Grapevine, Keller or nearby, call or text me at 817-674-2037.