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Roof Insurance Coverage

Homeowners Insurance Roof Replacement

The roof over your head is one of the most important features of your home — that’s why having the right insurance protection in place is a must. At American Family Insurance, your homeowners insurance is equipped with a variety of options to cover your roof. So if you face the unexpected, we’ll get your roof back in shape to do what it does best: protect you and everything that matters most.

Actual Cash Value vs. Replacement Cost Value

When it comes to insurance for your roof, your homeowners policy is designed to protect you against a number of incidents, such as a damage from a tree falling, weight of snow and ice, fire, lightning, ice dams, wind and hail.

How you’re protected from these perils is dependent upon whether you have actual cash value coverage or replacement cost value coverage. Let’s take a look at the difference between the two.

What is actual cash value (ACV)? The ACV of your roof is what your roof is worth today, taking into consideration things such as its age, condition and type of roofing material. Before your insurance kicks in to help cover the cost, you’ll be required to pay a deductible.

Let’s say your roof is ten years old and you originally paid $12,000 to have it installed. Unfortunately, a tree fell on your roof during a windstorm and caused serious damage. Since your roof has been exposed to the elements for ten years, it has depreciated and may only be worth $7,200 today. If you have actual cash value coverage, we’ll pay $7,200 (after your deductible) and you would pay the remaining cost to replace your roof.

What is replacement cost value (RCV)? RCV is the amount it will cost to replace your roof today. If you were to purchase your roof today, what would it cost? That’s its replacement cost value. You’ll also pay a deductible with RCV.

Now let’s consider the same example as above, but this time you have RCV coverage. If a windstorm caused a tree to fall and damage your ten-year-old roof, you won’t have to pay anything out of pocket other than your deductible, since your RCV coverage will pay to repair or replace your roof.

Does Homeowners Insurance Cover Roof Leaks?

With American Family Insurance, your homeowners policy is equipped with replacement cost coverage for non-wind and non-hail losses. So as long as the leak is caused by a covered loss, your homeowners insurance will cover the replacement cost minus your deductible.

For example, let’s say a storm rolled through town and lightning struck a tree, which toppled onto your roof causing a giant hole and water to leak through. Because you have roof RCV coverage, the full amount of damage (minus your deductible) to your roof will be covered. Bonus: Your homeowners insurance will also cover damages to the interior of your home due to the water damage.

On the other hand, if the roof leaks due to wear and tear or lack of maintenance, the repairs to the roof will not be covered. However, the resulting water damage to the interior of your home is still covered by your homeowners policy.

Does Insurance Cover Wind and Hail Damage to My Roof

One of the most common causes of damage to roofs are wind and hail, so it’s important to have the right protection in place to avoid paying costly damages. At American Family, your homeowners insurance will cover your roof for wind and hail damage, but whether you’re covered for actual cash value or replacement cash value depends on a few things.

For starters, if your roof is eligible based on its age and type (e.g. shingles, tiles, slate, wood shake, etc.), roof replacement cost coverage for windstorm and hail is an optional coverage that is added to your policy. This means that if your roof is damaged from wind or hail, we’ll reimburse you for the full amount it would cost to repair or replace your roof — if you repair or replace it. Depending on the damage, you may choose to not fully replace your roof, but in that case we’ll only pay you the actual cash value for the damage.

If your roof isn’t eligible for RCV coverage — for instance, if your roof is over the maximum age for your type of roof covering — your policy will provide actual cash value coverage.

You also have the option to leave your coverage as actual cash value coverage for wind and hail damage, even if your roof is eligible for roof replacement cash value coverage. But keep in mind, ACV coverage provides a lower level of protection because it considers the wear and tear, age and deterioration that a roof typically suffers over time. So while you are covered for some of the damage, you’d be responsible for paying any remaining costs, which could be thousands of dollars.

Consider what it would cost you to buy a new roof for your home. Probably not cheap, right? That’s why, though replacement cost value coverage may cost more than actual cash value coverage, the peace of mind that you’ll be fully protected is worth the price.

Roof Insurance Claims Process

When the unexpected happens, our industry-leading claims service is always focused on getting your home, and your life, back to normal as soon as possible.

One thing to remember, if you have damage to your roof and you have replacement cost coverage — settling losses for replacement cost coverage is a two-step process. First, we’ll make an initial payment to you for the actual cash value of the roof. Then, once you repair or replace your roof, we’ll pay the balance of the cost of the repair or replacement.

To report your claim, call 1-800-MYAMFAM (1-800-692-6326). Before you call, make sure you have these handy: Your American Family Insurance policy number, date and time of your loss and a brief description of what happened.

You can report your claim online too. Already filed your claim? View your claim status.