What roof insurance coverage options do homeowners have?
Short answer. The main choices are how the roof is settled (replacement cost, actual cash value or a payment schedule), what deductible applies to wind and hail, how much ordinance or law coverage you carry for code upgrades, and whether you accept a cosmetic damage exclusion. Impact resistant shingles can also earn a discount with many insurers.
Settlement choices
- Replacement cost value (RCV). Pays what it costs to replace the roof, usually with depreciation held back until the work is done. The strongest option for most homeowners. See ACV vs RCV.
- Actual cash value (ACV) on the roof. Lower premium, but depreciation is never paid. On an older roof that can be half the cost or more.
- Roof payment schedule. A table that pays a set percentage based on roof age and material. See payment schedules.
Deductible choices
Flat dollar deductibles, percentage wind and hail deductibles, and in some policies a separate roof deductible. Higher means a lower premium and a bigger share of each storm loss.
Add-ons worth asking about
- Ordinance or law coverage. Pays for code required work such as drip edge, ice barrier or deck repairs that a replacement triggers. Many policies include a small percentage and let you buy more. See code upgrade coverage.
- Extended replacement cost. Adds a cushion above the dwelling limit when rebuilding costs spike after a large storm.
- Mold or fungi coverage. Raises the small mold limit that many policies carry after a covered leak.
- Water backup. Not a roof item, but often bundled; it covers backed up drains.
Discounts and trade-offs
Class 4 impact resistant shingles earn discounts with many carriers. In return, some insurers attach a cosmetic damage exclusion, especially on metal. Read that endorsement before you accept the discount, since it can exclude dents that hurt resale value but do not leak.