Last Updated on October 23, 2026 by Syed Sarim Naqvi
Roof insurance is not a separate policy but the way your homeowners policy pays for roof damage, and more insurers now pay on an actual cash value (ACV) basis or a roof payment schedule instead of full replacement cost. The catch is the gap: on a $20,000 roof that is 10 years old, ACV that depreciates $1,000 a year would leave you paying $11,000 including a $1,000 deductible, versus just the deductible with replacement cost.
Key Takeaways
- United Policyholders reports a trend of offering actual cash value roof cover instead of replacement cost value, and says insurers in hard-hit states have moved away from traditional replacement cost roof cover
- An example from the Insurance Information Institute discussion: a $20,000 roof, 10 years old, with $1,000 deductible and $1,000 a year depreciation leaves you owing $11,000
- A roof payment schedule sets the percentage paid by roof age, for example 100% at 1 to 2 years, 80% at 6 to 10 years and 50% at 16 or more years in one agency’s illustration
- A Rough Notes analysis (January 2026) says the standard HO 04 93 endorsement gives no age-based schedule and stays on the policy even after you replace the roof
- Farm Bureau Financial Services says 10+ years of property cover with it can earn replacement cost on non-wood roofs, and UL Class 3 or 4 impact-resistant roofs get its top tier
What Is the Difference Between ACV and Replacement Cost?
United Policyholders explains that with ACV, your insurer pays to repair or replace the roof, less your deductible and depreciation for the age and type of roof. Replacement cost pays to replace it without a deduction for age. A Goosehead agency example: a brand-new roof would cost $15,000 but a 10-year-old roof has depreciated to $7,000, so ACV pays about that value, while replacement cost ignores depreciation.
What Is a Roof Payment Schedule?
Goosehead describes it as a middle option that works like replacement cost for a brand-new roof but reduces the payout as the roof ages. Its illustrative schedule is 100% of replacement cost for a roof 1 to 2 years old, 90% for 3 to 5 years, 80% for 6 to 10 years, 70% for 11 to 15 years and 50% for 16 or more. Farm Bureau Financial Services says a published schedule shows how wind and hail claims are paid based on roof age and materials, and that the schedule may only be available in policy documents with some providers. The numbers differ by insurer, so use these as an illustration.
| Settlement Type | How It Pays | Key Catch |
|---|---|---|
| Replacement cost | Cost to replace, less deductible | Often limited to newer roofs |
| Roof payment schedule | A percentage of replacement cost by roof age | Percentage drops as the roof ages |
| ACV endorsement (HO 04 93) | Cost less depreciation for wind and hail | Gives no age schedule and stays on after a new roof |
| Loss percentage table | Cost multiplied by a table percentage | Roof system limits may apply to older roofs |
Why Are Insurers Doing This?
United Policyholders quotes an Insurance Information Institute spokesman calling it a logical response from the insurer’s perspective, citing homeowners who have gotten three $20,000 roof replacements in three years. The same article notes the American Insurance Association’s chief claims counsel sees the ACV roof option as good for consumers, while consumer advocates find little to celebrate. Rough Notes says some carriers add the ACV endorsement mainly at new business when the roof age does not qualify for replacement cost.
How Much Does It Cost?
The sources reviewed do not publish a price for roof cover as such, because it is a settlement term inside the homeowners policy. The cost to you is in the payout: in the United Policyholders example, ACV leaves $11,000 against $1,000 for replacement cost, and Goosehead’s schedule leaves a gap that grows with age. As an illustration, with Goosehead’s 80% tier on a $20,000 roof aged 6 to 10 years, the insurer would pay $16,000 before the deductible and you would absorb $4,000 plus the deductible.
What Can You Do About It?
- Ask for the schedule: Allstate, per United Policyholders, gives policyholders a schedule upfront; ask your insurer for yours
- Check for buy-back: some carriers let you convert back to replacement cost
- Upgrade the roof: Farm Bureau says UL Class 3 or 4 impact-resistant roofs qualify for the highest tier
- Remove the endorsement: Rough Notes says the HO 04 93 endorsement must be removed to get replacement cost after you replace the roof
- Loyalty: Farm Bureau offers replacement cost for non-wood roofs after 10+ years with the company
How Does This Connect to Other Home Cover?
Storm deductibles are in Hurricane and Wind/Hail Deductibles Explained, and solar panels on roofs in Solar Panel Insurance Explained. Water risks are in Water and Sewer Backup Insurance Explained, rebuild costs in High-Value Home Insurance Explained, and condos in Condo Insurance (HO-6) Explained.
FAQ
What is ACV roof coverage?
The insurer pays repair or replacement cost less your deductible and depreciation for the roof’s age and type.
What is a roof payment schedule?
A table showing what percentage of replacement cost is paid based on roof age and material.
Why is my insurer changing roof cover?
Insurers in hard-hit states have moved away from replacement cost for roofs after repeated claims.
Can I get replacement cost back?
Some carriers offer buy-back or loyalty options, and impact-resistant roofs may qualify.
What is HO 04 93?
An ISO endorsement that settles wind and hail roof losses on an ACV basis.
Does replacing the roof remove the ACV rule?
Not automatically; the endorsement must be removed, per Rough Notes.
Who decides depreciation?
Your policy’s wording, schedule or loss percentage table sets it.
Glossary
- ACV: actual cash value, replacement cost minus depreciation.
- RCV: replacement cost value, cost to replace without depreciation.
- Roof payment schedule: a percentage table by roof age.
- Roof surfacing: the shingles or covering over the roof structure.
- Buy-back: an endorsement restoring replacement cost.
Sources
- United Policyholders: Roof Insurance, ACV Versus Replacement Cost ($20,000 example, insurer trend)
- Fox Business: Roof Insurance Coverage Hits a New Ceiling (same example, III and AIA views)
- Rough Notes: Homeowners Roof Surfacing Coverage Considerations (HO 04 93, loss percentage tables)
- Goosehead: How Does Home Insurance Cover Roof Damage? ($15,000 vs $7,000, sample schedule)
- Farm Bureau Financial Services: Roof Coverage (payment schedule, loyalty benefit, impact-resistant tier)
Related reading: Umbrella Insurance Explained · Home Warranty vs Homeowners Insurance Explained · Earthquake Insurance Explained
Published October 2026. Schedules, percentages and plan terms vary by insurer and change often; always read your roof settlement endorsement and any payment schedule, and refresh this article periodically.
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