Should You Use Homeowners Insurance for a Roof Replacement?

Most people assume their homeowners’ insurance will handle the cost of a new roof when damage strikes. However, that’s not always the case, and making the wrong call can result in a denied claim, a higher premium, or paying thousands out of pocket.

In our nine years of operation at Hoel Roofing, we’ve helped hundreds of homeowners in East Central Indiana navigate roof claims, from storm damage inspections to full replacements covered under insurance. We know the fine print, the real cost implications, and how to avoid common missteps that can jeopardize your coverage, and we want to help guide you not to make these mistakes.

In this article, we’ll break down when insurance covers roof replacement, how much you’ll pay out of pocket, what the claims process involves, and when it might make more sense to avoid insurance altogether.

Is a Roof Replacement Covered by Homeowners Insurance?

Yes and no. Most standard homeowners’ insurance policies do cover roof replacement, but only if the damage is sudden and accidental. Damage that falls in this category includes things like:

• Hailstorms
• Wind damage, including damage from wind, hurricane, or tornado
• Fallen trees
• Fire or lightning strikes
• Snow, sleet, or ice damage
• Falling objects like trees depending on the reason for the fall.

Typically, your homeowners’ policy will cover these damages up to your coverage limit, minus any applicable deductible. However, in areas where certain weather conditions are more prevalent, e.g., hailstorms, there may be a separate, higher homeowners insurance deductible, which could be a percentage of your policy’s dwelling coverage or a set dollar amount. Additionally, if your roof is old, poorly maintained, or already leaking due to age, your insurance likely won’t cover it.

If you have an old roof, 15-20 years old, you should keep in mind that insurers often prorate coverage for roofs over 15-20 years old. That means you may only get partial reimbursement, or none at all, even if the damage is weather-related.

When Doesn’t Homeowners’ Insurance Cover Roof Damage?

When it comes to homeowners’ insurance, it’s important to know what’s not covered, especially when it comes to roof damage.

Here are some common exclusions you should be aware of:

1. If your roof has some wear and tear: Over time, the materials on your roof, particularly shingles, can wear down. Unfortunately, this natural aging process isn’t covered by your insurance policy, so any damage from it will fall on your shoulders.
2. If your roof has been neglected: If you let your roof fall into disrepair, you may find yourself facing costly repairs. Insurance typically does not cover damages resulting from a lack of maintenance. For instance, if your shingles age and begin to leak, and you haven’t addressed the issue, those repairs are your responsibility.
3. If your roof has been damaged by flooding: While you might think your homeowners’ insurance has you covered, flood damage typically requires its own separate flood insurance policy. 
4. If your roof has been damaged by earthquakes: If you live in an area prone to earthquakes, remember that most homeowners’ insurance policies don’t include coverage for this type of damage. It’s crucial to explore additional earthquake insurance if you’re in a risk zone.
5. If your roof has been damaged by animals: Wildlife can be a bit mischievous when it comes to your roof and attic. However, if animals cause damage, homeowners’ insurance usually won’t cover the repairs.

What Will You Actually Pay Out Of Pocket If You Use Insurance?

Even if your roof claim is approved, insurance doesn’t mean a free roof. There are still costs you may be responsible for. They are:

1. Your Deductible

Your deductible is the amount you must pay yourself before your insurance company covers the rest of an approved claim. Most homeowners have a deductible between $500 and $2,500, depending on their policy.

Here’s what that looks like in real life:

• If your roof repair is $8,000 and you have a $1,000 deductible, you pay the first $1,000 and insurance covers the remaining $7,000 (as long as the damage is covered under your policy).
• If the total repair cost is less than your deductible, for example, a $1,200 repair with a $1,500 deductible, you pay the entire amount yourself, and insurance won’t pay anything.

Why it matters: Your deductible directly impacts how much you’ll need to pay out of pocket after a storm or accident. A lower deductible means less cash needed when disaster strikes, but typically comes with higher monthly premiums. A higher deductible lowers your premium but increases the amount you’ll need to have ready if you file a claim.

2. Non-Covered Damage or Upgrades

Insurance only pays for damage caused by covered perils. It typically does not cover:

• General wear and tear
• Mould or pest damage
• Neglect or long-term deterioration
• Earthquakes or flooding (unless separately insured)

If the damage is from something your policy doesn’t cover, you’ll have to pay 100% of the repair or replacement costs yourself, no matter the amount. For example, if shingles fail because they’ve reached the end of their lifespan, insurance won’t contribute a dime.

Even if the damage is from a covered peril, you’ll still pay your deductible before insurance pays the rest. So, for a $10,000 covered repair with a $1,500 deductible, you’d pay $1,500, and insurance would cover $8,500.

Also, if your roof needs to be updated to meet current building codes, your policy may not cover the added cost unless you have ordinance or law coverage.

3. Excluded Roof Components

Some policies don’t cover every part of your roofing system. You could be responsible for:

• Flashing
• Gutters
• Roof decking or underlayment

Unless these are explicitly included in your policy, they’re often billed separately. If they’re excluded, you’ll have to pay the full cost for those components in addition to your deductible, even if the rest of the roof replacement is covered. For example, if your policy covers shingles but not decking, and replacing the decking adds $2,000 to the job, that $2,000 comes entirely out of your pocket.

4. ACV or. RCV

Actual Cash Value (ACV) means your insurance will only pay for what your roof is worth after subtracting depreciation for age and condition. For example, if your 15-year-old roof originally cost $12,000 today, your insurance might only pay $4,000-$6,000, and you’d have to cover the rest.

Replacement Cost Value (RCV) means your insurance will cover the full cost to replace your roof with a new one of a similar kind and quality, minus your deductible. For example, if the replacement costs $12,000 and your deductible is $1,000, your insurance would pay $11,000, leaving you responsible for the remaining $1,000.

When Might Paying Out-of-Pocket Be the Better Option?

Sometimes, paying out-of-pocket makes more financial sense. You might want to skip insurance if:

• The cost of the repair is only slightly higher than your deductible
• You’ve already filed claims recently
• Your roof is nearing the end of its life and is likely to be excluded anyway
• You’re trying to avoid a premium increase or a policy drop. If the repair is minor and the cost is close to or lower than your deductible, paying out of pocket can sometimes prevent an insurance claim that could raise your rates or put your policy at risk. But if the damage is significant or would cost much more than your deductible, it’s usually worth filing a claim despite the potential for a rate change.

So, Will Homeowners Insurance Replace Your Roof?

It depends. If your roof is relatively new, the damage is sudden, and you file a claim quickly, the answer is likely yes. But even then, you’ll still have costs, paperwork, and timing to deal with.

Our advice? Don’t go through it alone. When you try to handle an insurance claim by yourself, you’re taking on the risk of missed details, incomplete documentation, and negotiating with adjusters who do this every day. A single oversight could mean thousands of dollars in denied coverage or paying for repairs you thought would be covered.  Let a roofing contractor who understands insurance help guide you through the process and protect your wallet. Check our guide on how to choose the right roofer for your insurance roof replacement.

At Hoel Roofing, we’ve seen homeowners win and lose insurance claims, and we know the difference is often in the prep work. Contact us for a roof inspection to assess your insurance coverage. We’ll inspect your roof, document any damage, and tell you whether your claim is likely to succeed before you file.