As insurance agents, one of the most important conversations we’ve been having with homeowners lately revolves around changes in their homeowners insurance policies, specifically regarding how their roofs are covered and what deductibles apply for wind and hail damage. Over the past few years, we’ve seen a noticeable shift in how many insurance companies structure these policies. Unfortunately, many of these changes can fly under the radar if you aren’t paying close attention to your renewal documents.
Let’s examine what’s happening, why it matters to you, and what steps you should take to stay informed and protected.
Why Are These Changes Happening?
The short answer is: rising costs. Severe weather events have become more frequent and more destructive in many parts of the country. In areas prone to windstorms, hailstorms, and tornadoes, insurance companies have experienced an unprecedented increase in claims related to roof damage. As a result, many carriers have adjusted their policy language to better manage risk and offset mounting losses.
These adjustments aren’t necessarily new, but in the past two years, we’ve seen a significant number of insurance companies across the country implementing new conditions, exclusions, and coverage limitations—especially when it comes to how your roof is insured and what you’ll pay out-of-pocket if your home is damaged by wind or hail.
Understanding Wind & Hail Deductibles
One of the biggest changes you might notice on your renewal is how the deductible applies to wind and hail claims.
In the past, most homeowners policies carried a flat, fixed deductible—something like $1,000 or $1,500—regardless of the cause of loss. Today, many insurance carriers are separating out wind and hail damage with a percentage-based deductible. This means that instead of paying a set amount, your deductible is calculated based on the insured value of your home.
For example, if you have a 1% wind/hail deductible and your home is insured for $400,000, your deductible for a wind or hail claim would be $4,000. Some policies may even require a 2% or higher deductible, depending on where you live and the insurance carrier.
That’s a significant change and can result in thousands of dollars in out-of-pocket expenses if your roof is damaged in a storm.
Actual Cash Value (ACV) vs. Replacement Cost (RC)
Another important shift that’s taking place involves how insurance companies pay for roof damage. This is especially true when it comes to asphalt shingle roofs, which are the most common type of roofing in the U.S.
Historically, most policies offered Replacement Cost Coverage (RC), which pays to repair or replace your roof without factoring in depreciation. In other words, if your 10-year-old roof was damaged in a hailstorm, your insurance would pay to replace it with a brand-new roof (minus your deductible).
However, more and more insurance companies are now moving to Actual Cash Value (ACV) coverage for roofs—particularly older roofs or those made of asphalt shingles. Under ACV, the payout for a roof claim is reduced based on the age and condition of your roof at the time of the loss. So, if your roof is 10, 15, or 20 years old, you could receive significantly less money after a claim, even if your roof is a total loss.
Some companies are even applying a roof schedule, which clearly outlines how much coverage decreases each year as your roof ages. Others may exclude cosmetic damage from wind or hail entirely—meaning they’ll only pay if the damage affects the structural integrity of the roof, not just its appearance.
Why You Need to Read Your Policy Renewal
Here’s the part we can’t stress enough: These changes aren’t always clearly communicated. They’re usually detailed in your annual renewal packet in the form of endorsements, exclusions, or changes in conditions. Unfortunately, many policyholders either don’t read these documents carefully or don’t fully understand what’s changed.
We strongly encourage you to review your policy renewal each year, particularly the sections that talk about deductibles and roof coverage. If you notice new terms like ACV on Roofs, Wind/Hail Deductible, or Roof Schedule Endorsement, that’s your signal to dig deeper or give your insurance agent a call.
These changes can have a major financial impact on you after a storm. The last thing you want is to find out you’re underinsured—or facing a large out-of-pocket expense—after you’ve filed a claim.
We’re Here to Help
Insurance policies aren’t always the easiest documents to read, and we understand that the fine print can be confusing or overwhelming. That’s why we’re here. It’s our job to help you understand exactly what’s covered—and what’s not—so you can make informed decisions about your protection.
If you have any questions about your homeowners policy, your roof coverage, or any recent changes you’ve noticed in your renewal, don’t hesitate to reach out. Whether you want us to review your policy, explain your deductible, or walk you through the difference between ACV and Replacement Cost, we’re happy to help.
The more you know about your coverage today, the fewer surprises you’ll face tomorrow.
