Nobody looks forward to their roof replacement. However, inevitably, over time, even the highest-quality roof will experience natural wear and tear that necessitates replacement. When that moment comes, you want to be as prepared as possible to ensure it doesn’t take a toll on your wallet.
How much should you save for the big project? How insurance impacts your roof replacement budget? Let’s explore everything you need to know about planning for a new roof.
Understanding your homeowner’s insurance
Your home is likely one of the most valuable assets you have. Homeowners insurance is a crucial tool for protecting that investment in many ways, and that also includes roofing insurance.
When thinking about a roof replacement, you should be aware that not all home insurance policies offer the same level of roof coverage. In some cases, companies may consider the age of your roof before approving your claim. For example, if it’s older than 10 years, you may only be partially reimbursed for the damage. With roofs less than 10 years old, you’re more likely to get fully covered.
What impacts your roof insurance coverage
You may have heard that a friend is getting their roof replaced for a significantly lower price than what your insurer quotes you. Why is that? This is because there are several factors that can affect your roof insurance. As mentioned before, older roofs typically get less coverage due to depreciation. Insurers also take into account the type of roofing material you have.
For instance, with wood shake roofs, premiums can be hundreds of dollars more per year, and wildfire coverage is often excluded. Metal roofing, on the other hand, usually has very low long-term insurance and replacement costs.
The amount of coverage your insurance will provide also depends on the cause of the damage. If you require a roof replacement due to a storm or other extreme weather events, you’ll most likely be covered. However, if you need to change your roof due to wear and tear or neglect, it probably won’t be covered.
Another important factor to consider is the deductible. In simple terms, this is the amount you have to pay out-of-pocket before your insurer covers the rest. Deductibles for roof repairs can vary depending on your home’s location, the age of your roof, and the type of roofing materials used.
As you can see, roof insurance encompasses several key components. That’s why it’s so important to read your policy carefully and discuss it with your insurance agent before agreeing to anything.
Common roofing materials and their insurance considerations
Asphalt roofs
In the US, asphalt roofs remain the most popular year after year, mainly due to their affordability and accessibility. Depending on the quality of the shingles you choose, you can expect your roof to last 15 to 30 years. However, it is worth noting that some insurers have reduced the acceptable age range for coverage.
Tile roofs
If you’re looking for a type of roofing that has a long lifespan, is durable, and is fire-resistant, tile roofs (such as clay, concrete, or slate) are a great option. Since they can withstand even the most challenging weather conditions, tile roofs usually qualify for extended coverage; however, repairs for them can be quite expensive.
When deciding on this roof, you should invest time and resources in proper maintenance to be eligible for comprehensive coverage.
Metal roofs
In the last couple of years, metal roofs have become a more common choice for both commercial and residential buildings. That’s because they require low maintenance, are durable, and are resistant to fire, wind, and hail. However, sometimes cosmetic damage, such as dents, is not covered.
Wood shakes and shingles
Homeowners who prefer a more natural aesthetic often go for wood roofs. While they look good, it’s important to note that they are often excluded from insurance coverage. These types of roofs are more susceptible to mold and rot and have much higher maintenance requirements.
Recap: How insurance impacts your roof replacement budget
Having a solid roof over your head is critical for safeguarding your home against many different elements. Eventually, your roof will experience wear and tear. When that time comes, it’s essential to understand how insurance might help cover the costs. This depends on many aspects, including the type of roof you have, where you live, and the condition of your roof.
While a roof replacement is a big undertaking, there are ways to make it more manageable. Take a look at our roof financing calculator to understand what you can afford and explore options to make your immediate need more attainable in the short term.
Fact Checked by Lita Legzdina on