How much roof coverage does home insurance give you?
Short answer. Most homeowners policies have no separate roof limit; the roof is covered under your dwelling limit (Coverage A), minus your deductible. What you actually receive depends on whether the roof is settled at replacement cost, actual cash value or an age-based payment schedule, and on any separate wind and hail deductible.
Four numbers decide your roof payout
- Dwelling limit. Usually far more than a roof costs, but many policies reduce replacement cost payments if the home is insured for less than a set share, often 80 percent, of what it would cost to rebuild.
- Deductible. A flat amount, or a percentage for wind and hail. At 2 percent on a $400,000 dwelling limit, the wind and hail deductible is $8,000.
- Settlement method. Replacement cost pays the full cost to replace, often in two checks. Actual cash value subtracts depreciation for age. A roof payment schedule pays a percentage based on roof age and material.
- Ordinance or law coverage. Pays for code-required items like drip edge or ice barrier. Many policies set it as a percentage of the dwelling limit, commonly 10 percent, but some have none.
A quick comparison
Take a roof that costs $15,000 to replace, with $5,000 of depreciation and a $1,500 deductible. Replacement cost pays $13,500 in total. Actual cash value pays $8,500. A payment schedule might pay far less on an older roof.
What does roof coverage cost?
There is no separate price for roof coverage; it is part of your premium. Endorsements that limit roof payouts usually come with a lower premium, which is why they are common. See ACV versus RCV, roof payment schedules and code upgrade coverage.