How Old is Too Old? A Homeowner’s Guide to Roof Age and Insurance
- Ethan Carter
- 6 days ago
- 4 min read
Updated: 3 days ago
Your roof is your home's first line of defense, but we rarely think about it until something goes wrong. A small issue overhead can quickly turn into a massive, expensive problem inside your home. That's why, from an insurance perspective, your roof's age and condition are critically important.
At Homeowners United, our goal is to help you understand the ins and outs of homeownership, including home exterior remodeling, and empower you to protect your investment. So, let's pull back the curtain on how the home insurance industry looks at your roof and what it means for you; and as always, if you need to hire any kind of home exterior contractor, use our Find a Pro Tool for peace of mind in finding a reputable professional for your job.
The Most Common and Costly Claims
From an insurer's point of view, risk is all about the numbers. And the numbers tell a clear story: claims related to wind and hail are the single most common reason homeowners file a claim, accounting for over 40% of all property damage claims. And what bears the brunt of that wind and hail? Your roof.
While fire and lightning lead to the most expensive claims on average, the sheer volume of roof-related damage from storms is staggering. The average wind and hail claim still costs over $13,500. This is precisely why your insurance carrier is so interested in the age, material, and condition of your roof. An older, weaker roof is simply more likely to fail and lead to one of these common claims.
The Age Factor: When Does a Roof Become a "Problem"?
Think of your roof like the tires on your car. You can have the safest car on the road, but if the tires are bald, you're still at a much higher risk of an accident. Similarly, a roof has a finite lifespan.
For the most common type of roofing material—asphalt shingles—that lifespan is typically between 15 and 30 years. Basic "3-tab" shingles are on the lower end of that range (15-20 years), while thicker "architectural" shingles can last closer to 30. Tile roofs in Arizona, for example can last many decades if properly installed and maintained.
Once a roof passes the 15- or 20-year mark, insurance companies start to get nervous. The risk of it failing during a storm increases significantly, and what might have been minor damage to a new roof could be catastrophic for an old one. This increased risk can lead to a few outcomes you need to be aware of:
Higher Premiums: Insuring an older roof simply costs more because the likelihood of a claim is higher.
Required Inspections: An insurer might require a professional roof inspection before they agree to issue or renew a policy for a home with an older roof.
Denial of Coverage: In some cases, a company may refuse to insure a home if the roof is too old or in poor condition.
A Critical Change in Your Coverage: This is a big one. An insurer may change your roof coverage from Replacement Cost Value (RCV) to Actual Cash Value (ACV).
The BIG Difference: Replacement Cost (RCV) vs. Actual Cash Value (ACV)
Understanding these two terms is one of the most important things you can do as a homeowner. The difference between them can mean thousands, or even tens of thousands, of dollars out of your pocket after a storm.
Replacement Cost Value (RCV): This is the good stuff. With RCV, if your roof is destroyed by a covered event (like a hailstorm), the insurance company will pay the full cost to replace your damaged roof with a new one of similar quality, minus your deductible.
Actual Cash Value (ACV): This is less ideal. ACV coverage means the insurance company will pay you for what your damaged roof was worth at the time of the storm. They calculate this by taking the replacement cost and then subtracting for depreciation due to the roof's age and wear and tear.
Let’s look at a simple example:
Imagine a new roof costs $20,000 to install and has a 20-year lifespan. Your current roof is
15 years old. A hailstorm totals it.
With RCV coverage, you'd get the full $20,000 (minus your deductible) to install a brand new roof.
With ACV coverage, the insurer would say the roof has lost 75% of its value (since it's 15 years into a 20-year lifespan). They would pay you only $5,000 (25% of the replacement cost), minus your deductible. You would be on the hook for the remaining $15,000 to get a new roof.
As you can see, having ACV coverage on an older roof can be a major financial blow right when you need help the most. Insurers often switch older roofs to ACV coverage automatically, so it's crucial to read your policy documents carefully.
What You Can Do: Protect, Renovate, Elevate
This isn't just about avoiding headaches with insurance; it's about protecting the value and safety of your home.
Know Your Roof: Find out how old your roof is and what material it's made of. If you don't know, a professional roofer can tell you with a quick inspection.
Inspect and Maintain: Have your roof inspected every few years is the first step of any large scale home exterior remodeling, especially after major storms. Addressing small issues like loose shingles promptly can prevent huge problems later. Keep records of any inspections and repairs. Our Find a Pro Tool is a great resource for finding a reputable home exterior contractor or roofing contractor to have this done for free at your home.
Plan Ahead: If your roof is entering its senior years (15+ for asphalt), start planning and budgeting for its replacement. A new roof isn't just a smart maintenance move; it can increase your home's value and often leads to lower insurance premiums—sometimes by as much as 5-35%.
Talk to Your Agent: Before you replace your roof, talk to your insurance agent. They can tell you if specific, more durable materials (like metal or tile) or impact-resistant shingles could lead to discounts on your policy.
Your roof is a major component of your home, and taking care of it is a key part of responsible homeownership. By understanding how it impacts your insurance, you can make smarter decisions, save money, and ensure you're truly protected when you need it most.
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