Will homeowners insurance pay for an old roof?
Short answer. Insurance pays for storm damage to an old roof, not for the roof being old, and the older the roof, the more the payment is reduced. On an actual cash value or roof payment schedule policy, depreciation for age can cut the check to a small share of the replacement cost, while a replacement cost policy usually pays the withheld depreciation back once the new roof is installed.
Three ways an old roof gets paid
Take a $16,000 roof replacement on a 17 year old roof with a $2,000 deductible. The numbers below are illustrations, not quotes.
- Replacement cost value: the adjuster withholds depreciation, say $9,000. The first check is $5,000 ($16,000 minus $9,000 minus $2,000). After the roof is installed and the final invoice is sent, the $9,000 is released. Total paid: $14,000.
- Actual cash value: same first check of $5,000, and that is the end of it. You fund the other $9,000 yourself.
- Roof payment schedule: the policy pays a fixed percentage for the roof's age. At 17 years, some schedules pay well under half, regardless of how good the roof looked.
What insurers will not pay for
- Replacing a roof because it is old, curling or losing granules.
- Leaks from worn flashing, cracked pipe boots or failed sealant.
- Upgrades you choose, unless the policy covers code-required items.
How to protect yourself
- Find out now which of the three methods your policy uses. Look for actual cash value, roof surfacing or payment schedule wording in the endorsements.
- Keep the roof's install date, permit and invoice on file; adjusters estimate age when no record exists, and estimates tend to run high.
- Get a dated inspection so later storm damage is easy to separate from age.
- If the roof is near the end of its life and your policy pays little, compare a planned replacement with what a claim would net you.
More: ACV vs RCV, recoverable depreciation and roof payment schedules.