Homeowner Guide 3 of 5

Roof Insurance Education Center: A Plain-English Guide for Texas Homeowners

Roofing and insurance often collide at the worst possible time.

A storm has just come through. You are trying to determine whether your house was damaged. Someone mentions an insurance claim. Suddenly you are hearing terms such as deductible, depreciation, replacement cost, actual cash value and recoverable depreciation.

It can feel much more complicated than it needs to be.

The first thing to understand is that your roof condition and your insurance coverage are two separate questions.

A roofing professional can evaluate the condition of the roof.

Your insurance policy and insurance company determine whether a loss is covered and how a covered claim will be paid.

Understanding that distinction makes the entire process easier to navigate.

Does homeowners insurance cover roof damage?

It can.

Homeowners insurance commonly covers certain sudden, accidental losses such as wind or hail damage when those causes are included under the policy.

Insurance generally is not intended to replace a roof simply because it has become old or worn out.

The Texas Department of Insurance specifically reminds homeowners that insurers do not owe for a new roof merely because the existing roof is old or deteriorated.

Coverage varies significantly from policy to policy.

That means two neighbors with similar houses and similar storm damage can have different deductibles, coverage limitations and claim payments.

The only way to know what your policy covers is to review the policy itself and ask your insurance company or agent questions about the specific coverage.

Learn more: Does Homeowners Insurance Cover Roof Damage? What Texas Homeowners Should Know

What is the difference between replacement cost and actual cash value?

These two terms can make a major difference in a roofing claim.

Replacement cost coverage generally bases the covered repair or replacement on current costs, subject to the policy terms and deductible.

Actual cash value generally accounts for depreciation based on factors such as age and condition.

The Texas Department of Insurance notes that some insurers change roof coverage as roofs age, so homeowners should not assume that the coverage they purchased years ago still handles the roof the same way today.

Look at your declarations and endorsements and ask your agent:

How is my roof currently covered?

That is a much better question to ask before a storm than after one.

Learn more: ACV vs. RCV — What Do These Terms Mean on a Roof Insurance Claim?

What is a wind or hail deductible?

A deductible is the portion of a covered loss the policyholder is responsible for paying.

Some Texas policies have a separate wind or hail deductible, and that deductible may be expressed as a percentage rather than a simple dollar amount.

That percentage can be easy to misunderstand.

For example, a percentage deductible generally relates to the insured value specified by the policy—not the cost of the roofing project.

Homeowners should look at the actual dollar amount represented by the percentage rather than assuming a “1%” or “2%” deductible is a small amount.

Texas law also matters here.

A contractor cannot legally waive, absorb or rebate a homeowner's property-insurance deductible.

If someone tells you, “Don't worry about the deductible—we'll take care of it,” treat that as a serious warning sign.

Learn more: How Does a Wind or Hail Deductible Work?

What should you do after discovering possible storm damage?

Start by documenting what you can safely see.

Take photographs and video. Record the date of the storm. Keep receipts for reasonable emergency measures or temporary repairs.

If the house has suffered obvious damage or you intend to file a claim, contact your insurance company promptly and follow the claim-reporting requirements in your policy.

The Texas Department of Insurance advises homeowners to take reasonable steps to prevent additional damage while avoiding unnecessary permanent repairs before the insurer has had an opportunity to evaluate the loss.

Meanwhile, a roofer can evaluate the physical roofing system, photograph observed conditions and prepare an estimate or scope for roofing work when appropriate.

What happens after you file a roof claim?

Although every insurer and claim is different, the general sequence often looks something like this:

  1. The homeowner reports the loss.
  2. The insurance company assigns the claim and evaluates the reported damage.
  3. An adjuster may inspect the property.
  4. The insurer determines what it believes is covered under the policy.
  5. If covered repairs are approved, the insurer provides claim documentation explaining its estimate and payment.
  6. The homeowner selects a contractor.
  7. The contractor performs the agreed construction work under its contract with the homeowner.

Questions about roofing construction belong with the contractor.

Questions about coverage, claim payment or policy interpretation belong with the insurance company, insurance agent, a properly licensed public adjuster where applicable, or legal counsel when appropriate.

Learn more: What Happens After You File a Roof Damage Claim? A Step-by-Step Homeowner Guide

This distinction is especially important in Texas.

A roofer can inspect the roof, document observed conditions, explain what roofing work appears necessary, prepare a construction estimate and discuss the scope of the proposed roofing project.

A roofer who is performing or may perform the construction work should not represent itself as the homeowner's public insurance adjuster on the same claim.

Texas prohibits a contractor from acting as a public adjuster on a property where that contractor is also providing or may provide contracting services.

In plain English:

Your roofer handles roofing. Your insurance company handles coverage.

Keeping those roles clear protects the homeowner and makes communication much easier.

Should you call the roofer or insurance company first?

It depends on what has happened.

If there is obvious major property damage, active water intrusion or another condition that clearly may involve an insurance claim, report the loss promptly to your insurer.

If you simply heard hail, saw a severe storm move through the neighborhood and are unsure whether anything actually happened to the roof, a physical roof inspection can help answer that initial condition question.

The goal should not be to file claims unnecessarily.

The goal is to gather enough accurate information to make an informed decision.

Learn more: Should I Call My Insurance Company or a Roofer First After a Storm?

Questions every homeowner should know how to answer

Before storm season, pull out your homeowners policy and determine how your roof is covered.

  • Find the deductible.
  • Determine whether wind and hail have a separate deductible.
  • Verify that the insurer has the correct roof age and material on file.
  • Ask whether your roof is covered at replacement cost or actual cash value.
  • Ask whether any roof-age schedule, cosmetic-damage limitation or other roof-specific endorsement applies.

You do not have to memorize the policy.

You simply want to know where to find the answers before you are trying to read insurance paperwork during an emergency.

Insurance should not drive the roofing diagnosis

One of the healthiest ways to approach storm damage is to separate the questions.

First:

What physically happened to the roof?

Then:

What are the appropriate construction options?

Then, where insurance applies:

What does the policy cover?

Those questions may interact, but they are not interchangeable.

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