Impactful Changes Affecting Roof Coverage

How These Trends Could Affect You and Your Home

Is Your Roof Fully Covered? You Might Be Surprised.

When a powerful storm rolls through your neighborhood, your first thought likely turns to your home, and more specifically, your roof. It’s your home’s first line of defense, shielding you from the elements. But here’s the twist: while your roof protects you, your insurance policy might not be protecting your roof the way it used to.

In recent years, insurance companies across the country have made subtle, but significant, changes to how roof damage is covered. Whether due to rising claims costs, severe weather events, or changes in underwriting guidelines, these adjustments can mean less coverage and more out-of-pocket expense for homeowners who aren’t paying attention.

Let’s take a look at three impactful trends that could affect your roof coverage—and what you can do to protect yourself.

Trend #1: Replacement Cost (RC) vs. Actual Cash Value (ACV)

The shift from RC to ACV is becoming more common—and costly.

Traditionally, many home insurance policies covered roof damage using Replacement Cost (RC) coverage. That means if your roof is damaged in a covered event (like a windstorm), the insurance company would pay to replace your roof with new materials of similar kind and quality, regardless of depreciation.

But more insurers are now applying Actual Cash Value (ACV) coverage to roofs—especially older ones. Depreciation is factored in with ACV. That means if your 15-year-old roof is damaged and needs to be replaced, the insurer may only pay a portion of the cost, based on its depreciated value.

Example:
You have a 20-year roof that’s 15 years old. After hail damage, the total cost to replace it is $12,000. With ACV, your insurer may calculate the depreciated value at $4,000—leaving you responsible for the remaining $8,000, plus your deductible.

Why it matters:
This change can leave you significantly underinsured when you need your coverage the most. It’s especially common for composition shingles or homes in storm-prone areas.

Trend #2: Limited Loss Settlement

A new way of capping roof payouts—before damage even occurs.

Another shift we’re seeing is the application of Limited Loss Settlement provisions. These clauses place predetermined limits on what the insurance company will pay for roof damage, often based on the roof’s age or type.

For example, a policy might state that if your roof is over 15 years old, the most it will pay is a fixed percentage of the replacement cost, regardless of actual repair costs.

Example:
A windstorm causes $10,000 in roof damage. Your policy includes a 50% limited loss settlement on roofs older than 15 years. You’ll receive only $5,000, even if it costs much more to fully repair or replace your roof.

Why it matters:
Even with Replacement Cost coverage, this clause can override that benefit. If your roof is older or not updated regularly, you could be caught off guard by this limitation.

Trend #3: Increased Wind/Hail Deductibles

A higher deductible for the most common types of damage.

Many insurance carriers are now applying separate, higher deductibles for wind and hail damage—especially in regions with frequent storms. Unlike your standard deductible (often a flat amount like $1,000), these deductibles are often calculated as a percentage of your home’s insured value.

Example:
Your home is insured for $300,000. You have a 2% wind/hail deductible. That means if a hailstorm damages your roof, you’ll need to pay the first $6,000 out of pocket before insurance kicks in.

Why it matters:
Wind and hail are among the most common causes of roof damage. A higher deductible means more financial burden on you—especially if you weren’t expecting it.

What You Can Do

The good news? You’re not powerless. Here are a few proactive steps to protect your roof—and your wallet:

• Review your policy now. Don’t wait until a storm hits. Look specifically for mentions of ACV, limited loss settlements, and wind/hail deductibles.
• Know your roof’s age. Your agent can help you understand how your roof’s age may affect your coverage.
• Request a roof coverage review. Ask your Hertvik agent to walk through your current policy. We’ll help explain exactly how your roof is covered and whether changes have occurred.
• Consider upgrading your roof. Newer, impact-resistant materials can reduce risk and may even qualify you for insurance discounts.

Talk to Hertvik Insurance Group Today

Insurance trends are changing, and roof coverage is right at the center of the storm. If you have questions about your policy—or want to make sure your home and roof are properly covered—contact your Hertvik Insurance agent today. We’re here to help you make sense of the fine print and find the right protection for your home.