In recent years, the insurance industry has experienced what’s known as a “hard market” — a period of higher costs, tighter underwriting and changes to coverage. Although the market is beginning to stabilize, some changes remain — including how roof coverage is handled.
One of the more common updates involves how roof claims are settled, especially for roofs that are 10 years or older. If you are a homeowner, understanding these changes can help you feel more confident about your coverage and be prepared for the unexpected. Here is what that means for you.
Replacement cost vs. actual cash value
In the past, roofs were often covered under replacement cost (RC). This means if your roof was damaged beyond repair, your policy would help cover the cost to replace it with a new one (minus your deductible). Today, some carriers may apply actual cash value (ACV) to older roofs.
ACV means: replacement cost minus depreciation
Depreciation takes into account:- The age of your roof
- Its condition
- Normal wear and tear
A helpful way to think about it
This approach is similar to how auto insurance works.
If you have comprehensive coverage on a 2012 vehicle and it's totaled in a hailstorm, the insurance payout reflects the vehicle’s current value — not the cost of a brand-new model.
Roofs are often evaluated in the same way, helping align coverage with the current condition and value of your home.
Understanding deductibles
Another change to be aware of is how deductibles may be structured within your policy.
Percentage deductiblesSome policies may include a percentage-based deductible instead of a flat dollar amount. This percentage is typically based on your home's insured value — something to keep in mind as property values change over time.
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Home value: $350,000
- Deductible: 1%
- Deductible amount: $3,500
As home values increase, the deductible amount adjusts accordingly.
- Wind and hail: often a higher or percentage-based deductible
- All other perils (AOP): applies to covered losses not caused by wind or hail
What this means for you
These changes are becoming more common across the industry, though details vary by carrier. Taking time to review your policy can help you better understand how your coverage works and what to expect in the event of a claim.
"It's always a good idea to review your insurance program periodically and understand the kind of coverage you have," said insurance advisor Blake Hanson. "It's a simple step that can help you avoid surprises if you have a claim."
Next steps- Review your policy at renewal
- Check how your roof is covered (RC vs. ACV)
- Understand your deductible structure
Here to help
While the insurance landscape continues to evolve, our commitment stays the same — helping protect your home and what matters most to you. Coverage, terms and conditions vary by policy and by carrier. Bravera Insurance is here to help you understand your options, answer your questions and feel confident in your coverage — every step of the way.
